3M CoFind Ratings Reports
3M CO's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. 3M CO has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 8.82% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||7662.0||7686.0|
|Net Income ($mil)||1291.0||1300.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1865.0||3485.0|
|Total Assets ($mil)||33235.0||31388.0|
|Total Debt ($mil)||11749.0||8517.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||50.42||54.28|
|Return on Assets||14.74||15.86|
|Return on Equity||41.04||38.04|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||604.4||624.75|
|Div / share||1.11||1.03|
|Book value / share||19.75||20.96|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1938435.0||2279974.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 34.88 for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of 25.10. For additional comparison, its price-to-book ratio of 9.00 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 4.61. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|MMM 22.66||Peers 34.88||MMM 16.33||Peers 15.35|
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 20.10||Peers 21.17||MMM 2.64||Peers 0.73|
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 9.00||Peers 4.61||MMM 2.34||Peers 307.40|
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 3.57||Peers 2.66||MMM -3.34||Peers 5.19|
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