About 3M Company
3M Company provides diversified technology services in the America, the Asia Pacific, Europe, the Middle East, Africa, and internationally. It operates through three segments: Safety and Industrial, Transportation and Electronics, and Consumer. The Safety and Industrial segment provides industrial abrasives and finishing for metalworking applications; autobody repair solutions; industrial specialty products, such as 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. The Transportation and Electronics segment provides ceramic solutions; attachment and bonding, films, sound, and temperature management for transportation vehicles; format graphic films for advertising and fleet signage; reflective signage for highway and vehicle safety; light management films and electronics assembly solutions; chip packaging and interconnection solutions; semiconductor production materials; and data center solutions. The Consumer segment offers cleaning products for the home; consumer air quality products; picture hanging accessories; retail abrasives, paint accessories, and safety products; stationery and office products; automotive appearance products; and consumer bandages, tapes, braces, and supports. It serves automotive; commercial solutions; consumer markets; design and construction; electronics; energy; government; manufacturing; safety; transportation industries. The company offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, channel partner, and dealers, as well as directly to users. 3M Company was founded in 1902 and is headquartered in Saint Paul, Minnesota.
3M Company (MMM) is a Industrials company in the Conglomerates industry with a market capitalisation of $85.1B. The stock trades at 29.30x trailing earnings and yields 1.89%.
- Sector
- Industrials
- Industry
- Conglomerates
- Market cap
- $85.1B
- P/E ratio
- 29.30
- Forward P/E
- 16.87
- EPS (TTM)
- $5.63
- Revenue (TTM)
- $25.2B
- Free cash flow
- $6.4B
- Profit margin
- 11.9%
- Dividend yield
- 1.89%
- Beta
- 1.07
- Shares outstanding
- 515.7M
Financial health: Fair6.8/10
6 strengths, 2 concerns. Weakest points: debt to equity, net debt vs cash flow.
- Debt to equity: 2.68 (Concern, benchmark < 0.5) — Debt of 2.68x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 5.3y (Concern, benchmark < 4 years) — Net debt of $7.4B is 5.3x annual free cash flow — about 5 years of cash flow to repay.
- Current ratio: 1.71 (Strong, benchmark > 1.5) — Short-term assets cover 1.71x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 81.9% (Strong, benchmark > 15%) — Earns 81.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 39.4% (Watch, benchmark > 40%) — Keeps 39.4% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 11.9% (Strong, benchmark > 10%) — Turns 11.9% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $1.4B (Strong, benchmark positive) — Generated $1.4B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 2.5% (Watch, benchmark > 10%) — Revenue changed 2.5% year on year, short of the > 10% mark.
- Earnings growth: 32.8% (Strong, benchmark > 10%) — Earnings changed 32.8% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.56 (Watch, benchmark < 1) — At 1.56, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 53.6% (Strong, benchmark < 60%) — Pays out 53.6% of earnings as dividends, leaving room to keep paying.