MMM : NYSE : Industrial Goods
$177.64 -0.63 | -0.35%
Today's Range: 177.03 - 178.37
Avg. Daily Volume: 1,938,200
07/28/16 - 10:31 AM ET

Financial Analysis

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 ($mil)7662.07686.0
EBITDA ($mil)0.02184.0
EBIT ($mil)1866.01840.0
Net Income ($mil)1291.01300.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1865.03485.0
Total Assets ($mil)33235.031388.0
Total Debt ($mil)11749.08517.0
Equity ($mil)11937.013093.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin50.4254.28
EBITDA Margin0.028.41
Operating Margin24.3523.94
Sales Turnover0.910.99
Return on Assets14.7415.86
Return on Equity41.0438.04
Debt Q2 FY16 Q2 FY15
Current Ratio1.582.64
Interest Expense38.035.0
Interest Coverage49.1152.57

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)604.4624.75
Div / share1.111.03
Book value / share19.7520.96
Institutional Own % n/a n/a
Avg Daily Volume1938435.02279974.0


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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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



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