MMM

3MNYSE:MMM Stock Report

Market Cap

US$105.0b

7D

-1.7%

1Y

7.0%

Updated

18 Sep, 2021

Data

Company Financials +
MMM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends5/6

MMM Overview

3M Company develops, manufactures, and markets various products worldwide.

3M Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 3M
Historical stock prices
Current Share PriceUS$181.49
52 Week HighUS$156.13
52 Week LowUS$208.95
Beta0.95
1 Month Change-7.10%
3 Month Change-5.28%
1 Year Change7.04%
3 Year Change-16.11%
5 Year Change2.31%
Change since IPO801.81%

Recent News & Updates

Sep 11
3M Company (NYSE:MMM) Should be on Your Dividend Watch List

3M Company (NYSE:MMM) Should be on Your Dividend Watch List

While the overall market has been rolling over in the last few days,3M Company (NYSE: MMM)has been leading the decline. After a mediocre year, stock's price spent most of the summer ranging, before dropping almost 6% following the latest dividend payment. As the stock declines, we will examine the dividend – its growth potential, and other important factors.

Aug 28
I Built A List Of Growing Companies And 3M (NYSE:MMM) Made The Cut

I Built A List Of Growing Companies And 3M (NYSE:MMM) Made The Cut

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 19

Is 3M A Good Dividend Stock? No, Dividend Yield Is Not Attractive Enough

3M's stock price rose by a decent +12.4% year-to-date in 2021, but its performance did not beat any of the major stock indices this year thus far. 3M stock is not worth buying for its dividend alone; its current dividend yield is close to a two-year low and translates into a price-to-dividend ratio of over 30 times. MMM stock is a Hold now, as its current valuations do not sufficiently compensate for the risks that the company faces.

Aug 16
3M (NYSE:MMM) Seems To Use Debt Rather Sparingly

3M (NYSE:MMM) Seems To Use Debt Rather Sparingly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 09

3M Not Getting Its Due In A Growth-Obsessed Market

3M posted strong results in what has been a strong quarter for multi-industrials, including solid organic revenue growth and core operating leverage despite cost inflation. Cost headwinds are a real concern now, and 3M's weak pricing leverage in the second quarter raises questions about whether they can offset these pressures with pricing. Litigation (PFAS and earplugs) remains a clear headline and financial risk, and may limit management's flexibility on greater near-term portfolio restructuring. 3M is a value name in a growth world, and not very popular given its perceived reliance on short-cycle recoveries; low-to-mid single-digit growth can drive a worthwhile return for more contrarian investors.

Shareholder Returns

MMMUS IndustrialsUS Market
7D-1.7%-1.6%-0.6%
1Y7.0%30.7%33.8%

Return vs Industry: MMM underperformed the US Industrials industry which returned 30.7% over the past year.

Return vs Market: MMM underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is MMM's price volatile compared to industry and market?
MMM volatility
MMM Beta0.95
Industry Beta1.08
Market Beta1

Stable Share Price: MMM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MMM's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190295,000Mike Romanhttps://www.3m.com

3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment offers personal safety products, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules to industrial, electrical, and safety markets.

Valuation

Is 3M undervalued compared to its fair value and its price relative to the market?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMM ($181.49) is trading below our estimate of fair value ($261.08)

Significantly Below Fair Value: MMM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MMM is good value based on its PE Ratio (17.7x) compared to the US Industrials industry average (26.8x).

PE vs Market: MMM's PE Ratio (17.7x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: MMM is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: MMM is overvalued based on its PB Ratio (7.3x) compared to the US Industrials industry average (3.1x).


Future Growth

How is 3M forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMM's forecast earnings growth (5.1% per year) is above the savings rate (2%).

Earnings vs Market: MMM's earnings (5.1% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: MMM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MMM's revenue (3.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: MMM's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MMM's Return on Equity is forecast to be high in 3 years time (37.5%)


Past Performance

How has 3M performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMM has high quality earnings.

Growing Profit Margin: MMM's current net profit margins (17%) are higher than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: MMM's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: MMM's earnings growth over the past year (14.6%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: MMM earnings growth over the past year (14.6%) underperformed the Industrials industry 38.7%.


Return on Equity

High ROE: Whilst MMM's Return on Equity (40.83%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is 3M's financial position?


Financial Position Analysis

Short Term Liabilities: MMM's short term assets ($16.3B) exceed its short term liabilities ($9.4B).

Long Term Liabilities: MMM's short term assets ($16.3B) do not cover its long term liabilities ($24.4B).


Debt to Equity History and Analysis

Debt Level: MMM's debt to equity ratio (125.7%) is considered high.

Reducing Debt: MMM's debt to equity ratio has increased from 98.1% to 125.7% over the past 5 years.

Debt Coverage: MMM's debt is well covered by operating cash flow (47%).

Interest Coverage: MMM's interest payments on its debt are well covered by EBIT (16.3x coverage).


Balance Sheet


Dividend

What is 3M current dividend yield, its reliability and sustainability?

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MMM's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: MMM's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: MMM's dividends per share have been stable in the past 10 years.

Growing Dividend: MMM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), MMM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MMM's dividends in 3 years are forecast to be covered by earnings (51.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Mike Roman (61 yo)

3.17yrs

Tenure

US$20,700,347

Compensation

Mr. Michael F. Roman, also known as Mike, serves as Independent Director at Abbott Laboratories since April 23, 2021. He has been Chief Executive Officer of 3M Company since July 1, 2018 and has been its D...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD20.70M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MMM's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: MMM's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MMM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

3M Company's employee growth, exchange listings and data sources


Key Information

  • Name: 3M Company
  • Ticker: MMM
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$105.017b
  • Shares outstanding: 578.64m
  • Website: https://www.3m.com

Number of Employees


Location

  • 3M Company
  • 3M Center
  • St. Paul
  • Minnesota
  • 55144-1000
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.