3M CO's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged 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 strong liquidity. Currently, the Quick Ratio is 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 24.55% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||7686.0||8134.0|
|Net Income ($mil)||1300.0||1267.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||3485.0||3009.0|
|Total Assets ($mil)||31388.0||33970.0|
|Total Debt ($mil)||8517.0||6973.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||54.28||52.96|
|Return on Assets||15.86||14.15|
|Return on Equity||38.04||27.69|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||624.75||647.97|
|Div / share||1.03||0.86|
|Book value / share||20.96||26.78|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2823629.0||2289386.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 56.72 for the Industrial Conglomerates industry and a value on par with the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 6.72 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 3.17. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|MMM 18.38||Peers 56.72||MMM 13.96||Peers 11.33|
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.
Premium. 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 premium to its peers.
|MMM 16.25||Peers 19.32||MMM 4.75||Peers 3.12|
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 6.72||Peers 3.17||MMM 7.88||Peers -45.82|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
MMM is expected to have an earnings growth rate that significantly exceeds its peers.
|MMM 2.83||Peers 2.17||MMM -1.05||Peers 0.66|
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 significant premium to its industry.
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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