NYSE:MMM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

6 star dividend payer and fair value.


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

-7.8%

MMM

-8.1%

US Industrials

-7.4%

US Market


1 Year Return

-29.7%

MMM

-3.9%

US Industrials

10.5%

US Market

Return vs Industry: MMM underperformed the US Industrials industry which returned -3.9% over the past year.

Return vs Market: MMM underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

MMMIndustryMarket
7 Day-7.8%-8.1%-7.4%
30 Day-16.4%-7.3%-3.6%
90 Day-13.9%-5.9%-0.6%
1 Year-27.2%-29.7%-2.2%-3.9%12.8%10.5%
3 Year-15.8%-22.7%-21.5%-28.2%37.4%28.6%
5 Year0.8%-12.2%-3.5%-16.6%61.3%43.6%

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?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMM ($146.85) is trading below our estimate of fair value ($207.56)

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 (18.5x) compared to the Industrials industry average (19.7x).

PE vs Market: MMM is poor value based on its PE Ratio (18.5x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: MMM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MMM is overvalued based on its PB Ratio (8.4x) compared to the US Industrials industry average (3.8x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMM's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MMM's earnings (8.2% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: MMM's revenue (3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MMM's revenue (3% 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 (44.1%).


Next Steps

Past Performance

How has 3M performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMM has high quality earnings.

Growing Profit Margin: MMM's current net profit margins (14.2%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: MMM's earnings have declined by -0.3% 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 (-14.6%) over the past year, making it difficult to compare to the Industrials industry average (-9.2%).


Return on Equity

High ROE: Whilst MMM's Return on Equity (45.25%) 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 ($13.0B) exceed its short term liabilities ($9.2B).

Long Term Liabilities: MMM's short term assets ($13.0B) do not cover its long term liabilities ($25.3B).


Debt to Equity History and Analysis

Debt Level: MMM's debt to equity ratio (200.6%) is considered high.

Reducing Debt: MMM's debt to equity ratio has increased from 51.8% to 200.6% over the past 5 years.

Debt Coverage: MMM's debt is well covered by operating cash flow (34.8%).

Interest Coverage: MMM's interest payments on its debt are well covered by EBIT (19.4x 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 0.6x debt).


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.9%industryaverage1.9%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: MMM's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: MMM's dividend (4%) is in the top 25% of dividend payers in the US market (3.9%)


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 (72.7%), 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 (62.1% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Mike Roman (59yo)

1.6yrs

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 serves a ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD12.86M) is about average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Roman
CEO, President & Chairman1.6yrsUS$12.86m0.0047% $4.1m
Nicholas Gangestad
Senior VP & CFO5.7yrsUS$7.74m0.0032% $2.8m
Julie Bushman
Executive Vice President of International Operations8.7yrsUS$5.34m0.0068% $5.9m
Theresa Reinseth
VP, Corporate Controller & Chief Accounting Officer0.8yrsno data0.00028% $245.9k
John Banovetz
Senior VP of Innovation & Stewardship and CTO2.6yrsno data0.0014% $1.2m
Bruce Jermeland
Vice President of Investor Relations0yrsno datano data
Ivan Fong
Senior VP7.3yrsUS$2.97m0.0056% $4.9m
Michael Duran
VP and Chief Ethics & Compliance Officer1.1yrsno datano data
Kristen Ludgate
Senior Vice President of Human Resources1.6yrsno data0.00036% $316.1k
Martyn Tiplady
Head of Industrial Mineral Products - Safety0yrsno datano data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Management: MMM's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Roman
CEO, President & Chairman1.6yrsUS$12.86m0.0047% $4.1m
Edward Liddy
Independent Director20.1yrsUS$325.00k0.0097% $8.5m
Michael Eskew
Independent Lead Director7.3yrsUS$360.27kno data
Herbert Henkel
Independent Director13.1yrsUS$305.62k0.0062% $5.4m
David Dillon
Independent Director4.5yrsUS$330.57k0.00093% $816.6k
Patricia Woertz
Independent Director4yrsUS$305.39k0.00062% $544.4k
Gregory Page
Independent Director4yrsUS$305.44k0.00069% $605.9k
Thomas Brown
Independent Director6.5yrsUS$305.00k0.0011% $1.0m
Amy Hood
Independent Director2.5yrsUS$305.76kno data
Muhtar Kent
Independent Director6.8yrsUS$325.71k0.0023% $2.1m

5.5yrs

Average Tenure

66yo

Average Age

Experienced Board: MMM's board of directors are considered experienced (5.5 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 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$87.808b
  • Shares outstanding: 575.60m
  • 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
MMMETLX (Eurotlx)YesCommon StockITEURJan 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 Safety & Industrial segment offers personal safety products, adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules. The Transportation & Electronics provides electronics, such as display materials and systems, electronic materials solutions; automotive, aerospace, and commercial solutions; advanced materials; and transportation safety products. This segment serves transportation and electronic original equipment manufacturer customers. The Health Care segment offers medical solutions, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety products. The Consumer segment provides home improvement, home care, and consumer health care products, as well as stationery and office supplies. This segment is also involved in the retail auto care business. The company serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. 3M Company was founded in 1902 and is headquartered in St. Paul, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:32
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.