NYSE:MMM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has 3M's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MMM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

MMM

0.2%

US Industrials

0.7%

US Market


1 Year Return

-17.8%

MMM

12.2%

US Industrials

13.7%

US Market

Return vs Industry: MMM underperformed the US Industrials industry which returned 12.2% over the past year.

Return vs Market: MMM underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

MMMIndustryMarket
7 Day-0.7%0.2%0.7%
30 Day5.4%12.2%4.7%
90 Day5.5%12.2%6.1%
1 Year-15.1%-17.8%15.3%12.2%16.2%13.7%
3 Year7.0%-0.6%-12.6%-20.7%48.8%39.2%
5 Year21.8%7.3%4.3%-10.7%62.5%44.5%

Price Volatility Vs. Market

How volatile is 3M's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMM ($171.88) is trading below our estimate of fair value ($190.63)

Significantly Below Fair Value: MMM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MMM is good value based on its PE Ratio (20.1x) compared to the Industrials industry average (26x).

PE vs Market: MMM is poor value based on its PE Ratio (20.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MMM is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: MMM is overvalued based on its PB Ratio (9.2x) compared to the US Industrials industry average (4.1x).


Next Steps

Future Growth

How is 3M forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMM's forecast earnings growth (8.9% per year) is above the savings rate (2.7%).

Earnings vs Market: MMM's earnings (8.9% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: MMM's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MMM's revenue (3.6% 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 very high in 3 years time (51.6%).


Next Steps

Past Performance

How has 3M performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMM has high quality earnings.

Growing Profit Margin: MMM's current net profit margins (15.5%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: MMM's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: MMM's earnings growth over the past year (9.3%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: MMM earnings growth over the past year (9.3%) underperformed the Industrials industry 9.3%.


Return on Equity

High ROE: Whilst MMM's Return on Equity (46.09%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 3M's financial position?


Financial Position Analysis

Short Term Liabilities: MMM's short term assets ($18.0B) exceeds its short term liabilities ($7.8B)

Long Term Liabilities: MMM's short term assets ($18.0B) do not cover its long term liabilities (24.0B)


Debt to Equity History and Analysis

Debt Level: MMM's debt to equity ratio (180.6%) is considered high.

Reducing Debt: MMM's debt to equity ratio has increased from 45.1% to 180.6% over the past 5 years.

Debt Coverage: MMM's debt is well covered by operating cash flow (36%).

Interest Coverage: MMM's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet

Inventory Level: MMM has a high level of physical assets or inventory.

Debt Coverage by Assets: MMM's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

3.35%

Current Dividend Yield


Upcoming Dividend Payment

Purchase 3M before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: MMM's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: MMM's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (66.4%), 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 (63% payout ratio).


Next Steps

Management

What is the CEO of 3M's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Mike Roman (59yo)

1.3yrs

Tenure

US$12,864,739

Compensation

Mr. Michael F. Roman, also known as Mike, has been Chief Executive Officer of 3M Company since July 1, 2018 and has been its Director since 2018 and Chairman of the Board since May 2019. Mr. Roman served a ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD12.86M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: MMM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MMM's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$203,40020 May 19
David Dillon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$169.50
BuyUS$176,26010 May 19
Gregory Page
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$176.26
BuyUS$179,60009 May 19
Gregory Page
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$179.60
SellUS$4,715,18001 Apr 19
Inge Thulin
EntityIndividual
Shares22,632
Max PriceUS$209.06
SellUS$1,015,15719 Feb 19
Joaquin Delgado
EntityIndividual
Shares4,897
Max PriceUS$207.33
SellUS$120,80711 Feb 19
Ippocratis Vrohidis
EntityIndividual
Shares606
Max PriceUS$199.35
SellUS$604,30311 Feb 19
Nicholas Gangestad
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,000
Max PriceUS$201.47

Ownership Breakdown

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


Management Team

  • Ivan Fong (58yo)

    Senior VP

    • Tenure: 7.1yrs
    • Compensation: US$2.97m
  • Martyn Tiplady

    Head of Industrial Mineral Products - Safety

    • Tenure: 0yrs
  • Mike Roman (59yo)

    CEO & Chairman

    • Tenure: 1.3yrs
    • Compensation: US$12.86m
  • Julie Bushman (57yo)

    Executive Vice President of International Operations

    • Tenure: 8.4yrs
    • Compensation: US$5.34m
  • Nick Gangestad (54yo)

    Senior VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$7.74m
  • Kristen Ludgate (56yo)

    Senior Vice President of Human Resources

    • Tenure: 1.3yrs
  • John Banovetz (51yo)

    Senior VP of Research & Development & CTO

    • Tenure: 2.3yrs
  • Bruce Jermeland

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Teri Reinseth (46yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 0.6yrs
  • Michael Duran

    VP and Chief Ethics & Compliance Officer

    • Tenure: 0.8yrs

Board Members

  • Ed Liddy (73yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$325.00k
  • Mike Eskew (69yo)

    Independent Lead Director

    • Tenure: 7yrs
    • Compensation: US$360.27k
  • Herb Henkel (70yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$305.62k
  • Dave Dillon (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$330.57k
  • Pat Woertz (66yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$305.39k
  • Greg Page (68yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$305.44k
  • Tony Brown (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$305.00k
  • Amy Hood (47yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$305.76k
  • Muhtar Kent (66yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$325.71k
  • Mike Roman (59yo)

    CEO & Chairman

    • Tenure: 1.3yrs
    • Compensation: US$12.86m

Company Information

3M Company's company bio, 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$98.840b
  • Shares outstanding: 575.05m
  • Website: https://www.3m.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMMNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
MMMSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
MMM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
MMMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0QNYLSE (London Stock Exchange)YesCommon StockGBCHFJan 1968
MMMXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
MMMSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
MMMWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
MMMBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/5 COM USD0.01ARARSNov 2003
MMMC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.25 COM USD0.01BRBRLAug 2012

Biography

3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety & Industrial, Transportation & Electronics, Health Care, and Consumer. The Safe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:46
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.