MMM : NYSE : Industrial Goods
$199.54 up 2.0 | 1.0%
Today's Range: 197.75 - 199.42
Avg. Daily Volume: 1863400.0
05/25/17 - 3:46 PM ET

Financial Analysis


3M CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. 3M CO has average liquidity. Currently, the Quick Ratio is 1.17 which shows that technically this company has 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 6.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)7685.07409.0
EBITDA ($mil)2183.02104.0
EBIT ($mil)1745.01748.0
Net Income ($mil)1323.01275.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2314.01513.0
Total Assets ($mil)33292.032982.0
Total Debt ($mil)11711.011139.0
Equity ($mil)10989.011733.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin55.3555.16
EBITDA Margin28.428.39
Operating Margin22.7123.59
Sales Turnover0.910.91
Return on Assets15.3114.88
Return on Equity46.3941.83
Debt Q1 FY17 Q1 FY16
Current Ratio1.991.51
Debt/Capital0.520.49
Interest Expense45.047.0
Interest Coverage38.7837.19


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)597.24606.52
Div / share1.181.11
EPS2.162.05
Book value / share18.419.34
Institutional Own % n/a n/a
Avg Daily Volume1894447.01886095.0

Valuation


BUY. 3M CO's P/E ratio indicates a discount compared to an average of 24.82 for the Industrial Conglomerates industry and a value on par with the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 10.61 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 5.13. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MMM 23.61 Peers 24.82   MMM 18.18 Peers 17.00

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MMM is trading at a valuation on par with 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MMM 20.34 Peers 18.85   MMM 2.44 Peers 1.07

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MMM is trading at a premium to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MMM 10.61 Peers 5.13   MMM 6.29 Peers 42.41

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MMM 3.84 Peers 2.59   MMM 0.93 Peers 2.15

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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