3M CO's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. 3M CO has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 15.39% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||7409.0||7578.0|
|Net Income ($mil)||1275.0||1199.0|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||1513.0||2809.0|
|Total Assets ($mil)||32982.0||30643.0|
|Total Debt ($mil)||11139.0||6591.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||50.36||54.05|
|Return on Assets||14.88||16.14|
|Return on Equity||41.69||35.55|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||606.52||634.34|
|Div / share||1.11||1.03|
|Book value / share||19.41||21.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2301696.0||2692853.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 39.61 for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of 24.18. For additional comparison, its price-to-book ratio of 8.56 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 4.09. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|MMM 21.36||Peers 39.61||MMM 15.23||Peers 15.83|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
MMM is trading at a significant discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
MMM is trading at a valuation on par to its peers.
|MMM 18.51||Peers 20.41||MMM 2.42||Peers 1.31|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
MMM is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
MMM trades at a significant premium to its peers.
|MMM 8.56||Peers 4.09||MMM 3.04||Peers 91.00|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
MMM is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MMM is expected to significantly trail its peers on the basis of its earnings growth rate.
|MMM 3.35||Peers 2.72||MMM -4.64||Peers 1.69|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
MMM is trading at a premium to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
MMM significantly trails its peers on the basis of sales growth
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