3M Company
3M Company Fundamental Analysis
3M Company (MMM) shows moderate financial fundamentals with a PE ratio of 24.78, profit margin of 13.03%, and ROE of 71.89%. The company generates $24.6B in annual revenue with weak year-over-year growth of -0.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MMM's fundamental strength across five key dimensions:
Efficiency Score
WeakMMM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMMM trades at attractive valuation levels.
Growth Score
WeakMMM faces weak or negative growth trends.
Financial Health Score
ModerateMMM shows balanced financial health with some risks.
Profitability Score
ModerateMMM maintains healthy but balanced margins.
Key Financial Metrics
Is MMM Expensive or Cheap?
P/E Ratio
MMM trades at 24.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MMM's PEG of -6.01 indicates potential undervaluation.
Price to Book
The market values 3M Company at 17.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.34 times EBITDA. This signals the market has high growth expectations.
How Well Does MMM Make Money?
Net Profit Margin
For every $100 in sales, 3M Company keeps $13.03 as profit after all expenses.
Operating Margin
Core operations generate 18.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.89 in profit for every $100 of shareholder equity.
ROA
3M Company generates $8.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
3M Company generates limited operating cash flow of $2.27B, signaling weaker underlying cash strength.
Free Cash Flow
3M Company produces free cash flow of $1.38B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.61 in free cash annually.
FCF Yield
MMM converts 1.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.72
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How MMM Stacks Against Its Sector Peers
| Metric | MMM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.78 | 26.32 | Neutral |
| ROE | 71.89% | 1290.00% | Weak |
| Net Margin | 13.03% | -43768.00% (disorted) | Strong |
| Debt/Equity | 2.75 | 116.05 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 10.65 | Neutral |
| ROA | 8.61% | -1541671.00% (disorted) | Weak |
MMM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 3M Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.89%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-4.34%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-73.05%
Industry Style: Cyclical, Value, Infrastructure
Declining