3M CO (MMM)
US88579Y1010 - Common Stock
Taking everything into account, MMM scores 5 out of 10 in our fundamental rating. MMM was compared to 10 industry peers in the Industrial Conglomerates industry. MMM has an average financial health and profitability rating. MMM has a valuation in line with the averages, but on the other hand it scores bad on growth. MMM also has an excellent dividend rating. These ratings would make MMM suitable for dividend investing!
1. Profitability
1.1 Basic Checks
MMM had positive earnings in the past year.
In the past year MMM had a positive cash flow from operations.
Of the past 5 years MMM 4 years were profitable.
MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -13.83%, MMM is doing worse than 60.00% of the companies in the same industry.
MMM has a Return On Equity of -145.52%. This is in the lower half of the industry: MMM underperforms 60.00% of its industry peers.
MMM has a Return On Invested Capital of 14.08%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMM is significantly above the industry average of 7.86%.
The last Return On Invested Capital (14.08%) for MMM is above the 3 year average (14.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.83% | ||
| ROE | -145.52% | ||
| ROIC | 14.08% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
1.3 Margins
Looking at the Operating Margin, with a value of 17.66%, MMM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MMM has declined.
Looking at the Gross Margin, with a value of 43.77%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MMM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.66% | ||
| PM (TTM) | N/A | ||
| GM | 43.77% |
OM growth 3Y-6.55%
OM growth 5Y-3.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-2.3%
2. Health
2.1 Basic Checks
MMM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MMM has more shares outstanding
The number of shares outstanding for MMM has been reduced compared to 5 years ago.
MMM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.75 indicates that MMM is not a great score, but indicates only limited risk for bankruptcy at the moment.
MMM has a better Altman-Z score (2.75) than 90.00% of its industry peers.
The Debt to FCF ratio of MMM is 3.17, which is a good value as it means it would take MMM, 3.17 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.17, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 3.10 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a worse Debt to Equity ratio (3.10) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.83
WACC7.71%
2.3 Liquidity
MMM has a Current Ratio of 1.07. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MMM (1.07) is comparable to the rest of the industry.
MMM has a Quick Ratio of 1.07. This is a bad value and indicates that MMM is not financially healthy enough and could expect problems in meeting its short term obligations.
MMM has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.51%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.53% yearly.
The Revenue has decreased by -4.52% in the past year.
MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.
EPS 1Y (TTM)-8.51%
EPS 3Y1.83%
EPS 5Y-1.53%
EPS growth Q2Q6.14%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.05%
Revenue growth Q2Q-0.82%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.16% yearly.
Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y-16.2%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
EPS Next 5Y6.16%
Revenue Next Year-18.65%
Revenue Next 2Y-11.92%
Revenue Next 3Y-7.08%
Revenue Next 5Y5.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.93, which indicates a very decent valuation of MMM.
Based on the Price/Earnings ratio, MMM is valued a bit cheaper than 70.00% of the companies in the same industry.
MMM is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.85, the valuation of MMM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MMM is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (21.27), we can say MMM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
MMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMM is cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.02 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
MMM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MMM's earnings are expected to decrease with -4.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 6.48%, which is a nice return.
MMM's Dividend Yield is rather good when compared to the industry average which is at 6.76. MMM pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, MMM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
5.2 History
The dividend of MMM has a limited annual growth rate of 1.98%.
MMM has paid a dividend for at least 10 years, which is a reliable track record.
MMM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.98%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
The earnings of MMM are negative and hence is the payout ratio. MMM will probably not be able to sustain this dividend level.
MMM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-47.33%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
3M CO
NYSE:MMM (4/19/2024, 8:43:10 AM)
91.74
+0.26 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 11.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.83% | ||
| ROE | -145.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.66% | ||
| PM (TTM) | N/A | ||
| GM | 43.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.51%
EPS 3Y1.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y0.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y