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MMM

3M NYSE:MMM Stock Report

Last Price

US$112.99

Market Cap

US$62.6b

7D

-3.1%

1Y

-37.6%

Updated

24 Sep, 2022

Data

Company Financials +
MMM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends6/6

MMM Stock Overview

3M Company operates as a diversified technology company worldwide.

3M Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 3M
Historical stock prices
Current Share PriceUS$112.99
52 Week HighUS$186.30
52 Week LowUS$111.62
Beta0.99
1 Month Change-20.85%
3 Month Change-15.89%
1 Year Change-37.59%
3 Year Change-31.33%
5 Year Change-46.17%
Change since IPO461.44%

Recent News & Updates

Sep 14

Investors Should Steer Clear Of 3M

Summary Given 3M's rising legal risks, bloated balance sheet, and deteriorating outlook, we think investors should steer clear of the company. During 3M's second quarter earnings update, the firm cut its full-year guidance for 2022. 3M had a large net debt load on the books at the end of June 2022. Its legal risks are mounting after a US federal judge ruled in August 2022 that lawsuits over defective earplugs a subsidiary of 3M sold to the military can proceed. There are better opportunities out there than 3M. By The Valuentum Team Investors should steer clear of 3M Company (NYSE:MMM) as there are better investment opportunities out there, in our view. The company's potential legal liabilities have become sizable of late, it has a large net debt load on the books, and its outlook is deteriorating in the face of various exogenous shocks. Ongoing corporate restructuring efforts further complicate 3M's outlook. While 3M is a solid enterprise that has historically been very shareholder friendly, we see shares of MMM facing sizable selling pressures for some time to come. 3M's Key Investment Considerations Image Source: Valuentum 3M is fundamentally a science-based company with an extensive patent portfolio. The company makes imaginative products, and it is a leader in many markets--from health care and highway safety to office products and abrasives and adhesives (though please note its business model is changing as 3M is in the process of spinning of various business segments, something that we will cover in just a moment). Believe it or not, the company started as a small mining venture in 1902. 3M is a great cash flow generator and aims to post a free cash flow conversion rate of 90%-100% in 2022 (free cash flow divided by net income) according to the guidance released during its second quarter earnings update in July 2022. We define free cash flow as net operating cash flow less capital expenditures. The company's top priorities for growth include connected safety, automotive electrification, and data centers, among others. Its strong free cash flows have enabled the Dividend Aristocrat to grow its annual dividend over the past 60+ consecutive years. Management expects to grow the dividend in line with earnings over time while pursuing meaningful share repurchases as well. Rising raw material and logistical expenses are pressuring the outlook for 3M's margins, however. The strong US dollar seen of late represents another hurdle for the firm, especially as it concerns its reported revenue performance. The 3M "story" has a lot of hair on it. The firm is dealing with substantial PFAS-related legal risks (known derisively as "forever chemicals"), on top of the $850 million settlement reached with Minnesota in 2018. Its legal obligations on this front continue to grow and grow in the US and abroad. Furthermore, 3M is now exposed to substantial potential legal obligations stemming from defective earplugs it sold to the US military. In August 2022, a US federal judge ruled that lawsuits against 3M could proceed even though 3M placed the company that made the earplugs (Aearo Technologies) into bankruptcy proceedings. The company is facing hundreds of thousands of lawsuits from service members and will likely enter legal settlements worth billions and billions of dollars to settle these claims. 3M issued out a short statement on the issue in August 2022 that simply stated it, along with its subsidiary Aereo, intended to appeal the decision. 3M is incurring meaningful restructuring expenses as it seeks to improve its productivity. The company is preparing to spin off its health care operations through a plan announced in July 2022, with the new enterprise focused on wound care, oral care, healthcare IT, and biopharma filtration operations. 3M intends to complete the tax-free transaction by the end of 2023, and will initially retain a 19.9% stake in the new publicly traded company. Over time, that equity stake will get monetized. Additionally, 3M recently spun out its food safety business as the company has embarked on a major restructuring drive to improve its growth prospects and profitability metrics over the long haul. There are a lot of moving parts to 3M's investment thesis. In our view, the substantial legal risks facing the company combined with complexities arising from its ongoing restructuring initiatives will pressure shares of 3M for some time, with headline risks regarding legal proceedings representing a major downside risk to its stock price. Earnings Update On July 26, 3M reported second quarter 2022 earnings that matched consensus top-line estimates and beat consensus bottom-line estimates. However, 3M lowered its full-year guidance for 2022 in conjunction with its latest earnings report with management citing "the strength of the US dollar is having an increasing impact on our top and bottom line, which is the primary factor driving our update to full year guidance" during the firm's second quarter earnings call. The company's latest guidance can be viewed in the graphic down below. 3M reduced its full-year guidance for 2022 during its latest earnings report. (3M - Second Quarter of 2022 IR Earnings Presentation) During the second quarter, 3M reported that its GAAP revenues declined by 3% year-over-year to reach $8.7 billion. Weakness at its electronics-related and consumer businesses was cited by management during 3M's latest earnings call as key reasons why its revenues declined, on top of headwinds facing the firm from the strong US dollar seen of late. Its GAAP operating income tanked from $2.0 billion in the second quarter of 2021 to $0.1 billion in the second quarter of 2022 as restructuring charges, costs associated with placing Aereo Technologies into bankruptcy, rising operating expenses, and headwinds facing its gross margins all took a heavy toll on its profitability. 3M posted $0.14 in GAAP diluted EPS last quarter, down 95% year-over-year. While 3M still forecasts that its non-GAAP organic sales will grow by 1.5%-3.0% in 2022 (down from 2%-5% previously), please note that on a reported basis its revenues will be well below that growth rate (if not negative). Underlying demand for 3M's offerings is holding up alright, but things are not going great for the firm. During the first half of 2022, 3M generated $1.3 billion in free cash flow and spent $1.7 billion covering its dividend obligations along with $0.8 billion buying back its stock. There is room for 3M's free cash flow performance to improve going forward after the firm experienced a large working capital build last quarter, which weighed negatively on its net operating cash flows. 3M generated $5.9 billion in free cash flow in 2021 and its run-rate dividend obligations stood at $3.4 billion last year. At the end of June 2022, 3M had a net debt load of ~$13.3 billion (inclusive of current marketable investments and short-term debt). We caution that 3M's net debt load indicates that the firm will likely need to turn to capital markets to raise funds to cover its potential future legal obligations, which could be quite substantial. Its bloated balance sheet and deteriorating outlook underpin why we think investors should steer clear of 3M. 3M's Economic Profit Analysis The best measure of a firm's ability to create value for shareholders is expressed by comparing its return on invested capital ('ROIC') with its weighted average cost of capital ('WACC'). The gap or difference between ROIC and WACC is called the firm's economic profit spread. 3M's 3-year historical return on invested capital (without goodwill) is 31.8%, which is above the estimate of its cost of capital of 8.9%. In the chart down below, we show the probable path of ROIC in the years ahead based on the estimated volatility of key drivers behind the measure. The solid grey line reflects the most likely outcome, in our opinion, and represents the scenario that results in our fair value estimate. Historically, 3M has been a solid generator of shareholder value and for now, we expect that will continue being the case. With that in mind, its business model is currently undergoing major changes and how those changes will impact its ROIC performance over the long haul remains to be seen. Image Source: Valuentum 3M's Cash Flow Valuation Analysis Image Source: Valuentum Our discounted cash flow process values each firm on the basis of the present value of all future free cash flows, net of balance sheet considerations. We think 3M is worth $162 per share with a fair value range of $130.00 - $194.00. Shares of 3M are trading below the low end of our fair value estimate range as of this writing, indicating shares of MMM could be undervalued however, please note that our enterprise models do not incorporate the potential hit to 3M's business that its various potential legal risks could result in. Should 3M's net debt load swell higher to fund future potential legal settlements, that would weigh negatively on the intrinsic value of its equity.

Sep 14
Should You Investigate 3M Company (NYSE:MMM) At US$120?

Should You Investigate 3M Company (NYSE:MMM) At US$120?

Let's talk about the popular 3M Company ( NYSE:MMM ). The company's shares saw significant share price movement during...

Sep 03

How To Replace 3M Company In Your Portfolio

Summary I recently wrote a bearish article on 3M due to the many red flags that may lead to loss of capital. However, many investors look to 3M for a few key reasons, and these may lead to stubbornly holding on to the underperforming asset. It is easy for me to recommend a sell, but now I will offer replacements that offer comparable attributes to why investors choose 3M in the first place. Introduction Most investors hold on to 3M (MMM) in the hopes of an ever-increasing dividend. They rely on the company’s stable nature and conservative financial practices to slowly grow their capital over a long time. Some even rely on the relatively high yield of the asset, with the dividend typically hovering between 2% and 3%. However, I believe that 3M is set to either reduce their dividend or stop increasing it as numerous issues arise. Predominantly, 3M faces significant headwinds in regards to litigation, lawsuits and remediation for both earplugs and forever chemicals. Due to the company’s weakness I believe it would be best to sell. I summarized my thoughts in this article a few days ago. To complement my prior article, I will now do my best to offer replacements for investors to gain exposure to what makes 3M attractive, but do not offer the same risk of underperformance. Of course, due to 3M’s age, size, and capabilities, there is no direct replacement, so I will provide a few options targeting key investment themes: safety, high yield, moat in product offering markets or innovation, conservative financial management, and dividend growth. 3M - Diversification King As a diversified industrial conglomerate focusing on materials science, 3M has exposure to most areas of the market. Many investors may be most familiar with their consumer products, often seen at hardware or home improvement stores, but 3M is far more than that. Also, don’t forget that 3M will be splitting off the health care segment, so the story will change soon. Depending on the exact split details, I would consider the health care segment as a potential asset to hold on to, as long as the risks of litigation remain with the core parent company. 2022 Q2 Earnings Presentation So what exactly should we look for to replace 3M? Based on the company’s recent financials, we can see the most weakness involves their consumer segment that offers the lowest margins and negative growth. At the same time, we can see that Health Care is the strongest segment with almost 5% growth and the highest margins. Then, the industrial and materials segments come in the middle of the road, but having the highest moat in terms of capabilities. However, tracing back years we can see that growth is quite volatile between units, and there is no one flagship sector to derive growth (see images below). 2022 Q2 Earnings Summary (3M Investor Presentation) 2019 FY Growth Data (3M FY 2019 Presentation) No Single Way to Replace 3M While I find it is easy to replace the health care (Johnson & Johnson (JNJ), Procter & Gamble (PG), Pfizer (PFE), etc.) or consumer segments (the retailers Home Depot (HD), Lowe's (LOW), etc.), the difficulty will be with the other two segments. Where can we find the equivalent amount of diversification? The first place we should look is beyond the risk of individual holdings (especially if safety is what you are looking for). As Investopedia puts it: Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk. One of the main issues for investors with selling 3M is that replacements will be multiple assets. While this certainly diversifies the portfolio and provides further margin of safety, I am sure some investors do not have the time to research additional tickers. If you fall in this category, perhaps it would be better if you went with ETFs or other funds. The diversification of assets beyond 3M will reduce volatility and performance will fall in line with the market. As the adage goes, “whatever helps you sleep at night”, and 3M sets a low long-term growth and return bar to meet. 3M Growth Metrics to Beat (Seeking Alpha) The most common ETFs that are sufficiently diversified into non-volatile assets are as follows: Vanguard Value ETF (VTV) and Schwab U.S. Dividend Equity ETF (SCHD). Both hold a wide range of the largest companies in the market, and both trade in a similar pattern. 3M has not traded in line with these two ETFs and has instead underperformed the past year. 3M’s volatility does allow for small periods of out-performance, but shareholders would have needed to buy in 2000 to have returns equal both VTV and SCHD upon their inception (2000s and early 2010s, respectively). See charts below for clarity, and not how important it is to manage volatility. 10 Year Total Return (Koyfin) Koyfin Beyond diversification, another one of 3M’s calling cards is offering dividend growth. A few equity ETFs offer higher yields than 3M typically does, between 2 and 3%. If dividend income is all you are looking for, then there are many other replacements. Four high yielding ETFs, ranging between 4 and 8% on average, are as follows: the iShares Core High Dividend ETF (HDV), the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), the iShares International Select Dividend ETF (IDV), and the Nuveen Preferred & Income Securities Fund (JPS). While the recent sell-off allows 3M to have an enticing yield currently, the company’s total return is almost in line with these high yielding funds over the past five years. The underperformance over the past five years has caused 3M to perform worse than junk bonds. Due to the risks, I would believe investors are best served to search for yield beyond 3M. The dividend yields and total returns of each ticker is summarized in the two charts below (do note the two different color schemes for each chart). 10 Year Dividend Yield History of MMM, HDV, JNK, IDV, and JPS. (Seeking Alpha) 10 Year Total Return of MMM, S&P 500, HDV, JNK, IDV, and JPS. (Seeking Alpha) Individual Companies Have a stubborn desire to trade individual companies, rather than funds? This section of the article is for you. While I addressed the fact that 3M has no direct replacement in a similar company, there are motifs we can track, similar to the diversified and high yielding funds. I will start by looking at the conglomerates. Then, I will focus on individual companies that may be competitors in 3M’s broad revenue segments, often major competitors. “The enemy of my enemy is my friend”, as the saying goes. Honestly, if you like 3M, then you might not like Berkshire Hathaway (BRK.A) (BRK.B) (no dividend), but as usual Buffett’s company continues to trundle along. Add in a high yield ETF I discussed earlier, then you get an equal amount of yield over time. You could also take the chance on Icahn Enterprises and enjoy the 15% average yield. Don’t be scared by the K-1 and activism-based business style, total returns are in line with the market, if not more. Use the excess cash to pay for a tax advisor. Those are the only two steadily performing conglomerates, so I think they are the only ones worth a thought (Honeywell (HON) is too expensive, others have growth issues, etc.). Koyfin 3M Has Innovation and Product Moats, Others Do Too The last set of companies I will address are those more tailored towards diverse materials science offerings, similar to 3M’s core segments. These investments are more growth oriented and do not offer high yield, but do offer the opportunity for solid capital gains. This is thanks to multiple factors, but the primary reason is via a moat on their prospective segments. 3M is not the only materials developer, and as I addressed in my main article, R&D spending is not increasing. As such, this leaves the door open for competitors to gain market share, and may be a major reason for the stalling growth over the past few years. Although 3M has a high dividend and conservative balance sheet. The following three companies offer just that and more: growth, innovation, and great financials. Specialty Chemicals: First up is Ashland, Inc. (ASH), a conglomerate in specialty chemicals that develops a wide range of precursory materials for manufacturers across a wide range of industries. The company has gone through a very successful revitalization program over the past 10 years, and although revenue growth is negative, the shares are trading around all-time-highs. 3M could copy Ashland’s pattern of selling off lagging assets and investing in higher margin products, but I have not seen this occurring on a large scale for 3M. See my recent article on Ashland for more details. Ashland 2021 Investor Day Presentation Ashland 2021 Investor Day Presentation Ashland, Selling Assets to Drive Earnings Growth (Seeking Alpha) Adhesives, Coatings, and Material Science: Another well-diversified company focusing on specialty industrial machinery to apply adhesives, coatings, and more is Nordson (NDSN). While diverse in applications, the company has strong moats in their niche use-cases, and this has provided a strong financial profile over the past two decades. I believe most 3M investors would agree that Nordson offers better financial offering than 3M, even if the company is far smaller. Just look at those 58 years of annual dividend increases! A recently announced acquisition of CyberOptics, which I discussed in an article, adds exposure to the semiconductor manufacturing industry. With a focus on profitability and strong customer value, growth is not extreme but performance exceeds 3M. While the valuation is certainly at a high point, those with a long-term mindset and desire for steady earnings growth will certainly be happy in the future.

Shareholder Returns

MMMUS IndustrialsUS Market
7D-3.1%-3.2%-5.2%
1Y-37.6%-29.9%-23.0%

Return vs Industry: MMM underperformed the US Industrials industry which returned -29.9% over the past year.

Return vs Market: MMM underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is MMM's price volatile compared to industry and market?
MMM volatility
MMM Average Weekly Movement4.5%
Industrials Industry Average Movement4.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: MMM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MMM's weekly volatility (5%) has been stable over the past year.

About the Company

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

3M Company operates as a diversified technology company worldwide. It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles.

3M Fundamentals Summary

How do 3M's earnings and revenue compare to its market cap?
MMM fundamental statistics
Market CapUS$62.58b
Earnings (TTM)US$4.15b
Revenue (TTM)US$35.09b

15.1x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMM income statement (TTM)
RevenueUS$35.09b
Cost of RevenueUS$19.46b
Gross ProfitUS$15.62b
Other ExpensesUS$11.47b
EarningsUS$4.15b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.49
Gross Margin44.53%
Net Profit Margin11.83%
Debt/Equity Ratio118.4%

How did MMM perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

82%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MMM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MMM?

Other financial metrics that can be useful for relative valuation.

MMM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA8.9x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does MMM's PE Ratio compare to its peers?

MMM PE Ratio vs Peers
The above table shows the PE ratio for MMM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.1x
SPLP Steel Partners Holdings
6xn/aUS$891.5m
EMR Emerson Electric
13.8x3.2%US$43.7b
HON Honeywell International
22.7x12.4%US$115.5b
ITW Illinois Tool Works
22x5.9%US$58.1b
15.1x13.1%US$62.6b

Price-To-Earnings vs Peers: MMM is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (16.1x).


Price to Earnings Ratio vs Industry

How does MMM's PE Ratio compare vs other companies in the Global Industrials Industry?

Price-To-Earnings vs Industry: MMM is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the Global Industrials industry average (10.4x)


Price to Earnings Ratio vs Fair Ratio

What is MMM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MMM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio27x

Price-To-Earnings vs Fair Ratio: MMM is good value based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (27x).


Share Price vs Fair Value

What is the Fair Price of MMM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MMM ($112.99) is trading below our estimate of fair value ($260.98)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is 3M forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMM's forecast earnings growth (13.1% per year) is above the savings rate (1.9%).

Earnings vs Market: MMM's earnings (13.1% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: MMM's revenue (3.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MMM's revenue (3.8% 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 (35.5%)


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Past Performance

How has 3M performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MMM has a large one-off loss of $1.3B impacting its June 30 2022 financial results.

Growing Profit Margin: MMM's current net profit margins (11.8%) are lower than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: MMM's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: MMM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MMM had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Industrials industry average (-26%).


Return on Equity

High ROE: Whilst MMM's Return on Equity (30.12%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is 3M's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MMM's short term assets ($14.5B) exceed its short term liabilities ($9.9B).

Long Term Liabilities: MMM's short term assets ($14.5B) do not cover its long term liabilities ($21.9B).


Debt to Equity History and Analysis

Debt Level: MMM's net debt to equity ratio (96.8%) is considered high.

Reducing Debt: MMM's debt to equity ratio has increased from 96.6% to 118.4% over the past 5 years.

Debt Coverage: MMM's debt is well covered by operating cash flow (36.8%).

Interest Coverage: MMM's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MMM's dividend (5.27%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MMM's dividend (5.27%) is in the top 25% of dividend payers in the US market (4.57%)


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (82.2%), MMM's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.6%), MMM's dividend payments are covered by cash flows.


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Management

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

3.5yrs

Average management tenure


CEO

Mike Roman (62 yo)

4.17yrs

Tenure

US$18,200,584

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 ($USD18.20M) is above average for companies of similar size in the US market ($USD13.05M).

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 (3.5 years average tenure).


Board Members

Experienced Board: MMM's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 43.74% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.65%
The Vanguard Group, Inc.
47,888,582$5.4b1.24%0.12%
7.76%
BlackRock, Inc.
42,987,221$4.9b-0.02%0.12%
5.9%
State Street Global Advisors, Inc.
32,685,523$3.7b0.29%0.2%
2.17%
Charles Schwab Investment Management, Inc.
11,996,062$1.4b5.91%0.36%
1.88%
Geode Capital Management, LLC
10,428,045$1.2b-6.53%0.15%
1.73%
Newport Trust Company, Asset Management Arm
9,561,315$1.1b-1.56%6%
1.73%
State Farm Insurance Companies, Asset Management Arm
9,557,100$1.1b0%1.24%
1.61%
Flossbach von Storch AG
8,942,625$1.0b-2.47%2.6%
1.34%
Northern Trust Global Investments
7,402,326$836.4m-0.15%0.17%
1.12%
Fisher Asset Management, LLC
6,195,762$700.1m2.71%0.51%
1.07%
BNY Mellon Asset Management
5,944,265$671.6m5.3%0.15%
1.07%
Massachusetts Financial Services Company
5,925,356$669.5m-4.18%0.17%
0.82%
Legal & General Investment Management Limited
4,557,863$515.0m3.52%0.15%
0.77%
UBS Asset Management
4,241,098$479.2m9.41%0.09%
0.74%
Wells Fargo & Company, Securities and Brokerage Investments
4,078,373$460.8m-13.43%0.2%
0.69%
Morgan Stanley, Investment Banking and Brokerage Investments
3,797,337$429.1m-7.59%0.08%
0.62%
U.S. Bancorp Asset Management, Inc.
3,451,415$390.0m-11.23%0.84%
0.61%
Norges Bank Investment Management
3,357,121$379.3m0%0.05%
0.59%
Royal Bank of Canada, Banking & Securities Investments
3,257,005$368.0m-2.8%0.3%
0.53%
Eaton Vance Management
2,938,830$332.1m-7.36%0.12%
0.52%
Bank of America Corporation, Asset Management Arm
2,907,035$328.5m3.84%0.13%
0.49%
Invesco Capital Management LLC
2,733,066$308.8m16.68%0.24%
0.46%
Jensen Investment Management Inc
2,527,510$285.6m-22.83%2.22%
0.45%
Swiss National Bank, Asset Management Arm
2,477,369$279.9m-0.74%0.18%
0.44%
First Trust Advisors LP
2,434,906$275.1m43.83%0.31%

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
  • Implied Market Cap: US$62.578b
  • Shares outstanding: 553.83m
  • Website: https://www.3m.com

Number of Employees


Location

  • 3M Company
  • 3M Center
  • Saint Paul
  • Minnesota
  • 55144-1000
  • 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
MMMETLX (Eurotlx)YesCommon StockITEURJan 1968
MMMWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
MMMCLSNSE (Santiago Stock Exchange)YesCommon StockCLCLPJan 1968
MMMBUL (Bulgaria Stock Exchange)YesCommon StockBGEURJan 1968
MMMBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/5 COM USD0.01ARARSNov 2003
MMMDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/5 COM USD0.01ARUSDNov 2003
MMMC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REP 1 COMBRBRLAug 2012

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.