MMM : NYSE : Industrial Goods
$171.91 up 0.29 | 0.17%
Today's Range: 171.23 - 171.93
Avg. Daily Volume: 1985800.0
12/06/16 - 1:11 PM ET

Financial Analysis


3M CO's gross profit margin for the third quarter of its fiscal year 2016 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 average liquidity. Currently, the Quick Ratio is 1.16 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.50% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)7709.07712.0
EBITDA ($mil)2272.02231.0
EBIT ($mil)1904.01876.0
Net Income ($mil)1329.01296.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2666.01758.0
Total Assets ($mil)34051.033258.0
Total Debt ($mil)12361.011253.0
Equity ($mil)12002.012186.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin54.8754.33
EBITDA Margin29.4728.92
Operating Margin24.724.33
Sales Turnover0.880.92
Return on Assets14.4814.95
Return on Equity41.140.81
Debt Q3 FY16 Q3 FY15
Current Ratio1.91.65
Debt/Capital0.510.48
Interest Expense50.038.0
Interest Coverage38.0849.37


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)601.47615.71
Div / share1.111.03
EPS2.152.05
Book value / share19.9519.79
Institutional Own % n/a n/a
Avg Daily Volume1895171.01855614.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 30.95 for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 8.66 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 4.50. 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 21.76 Peers 30.95   MMM 15.28 Peers 33.54

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.

 

Discount. 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 significant discount 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 19.86 Peers 20.38   MMM 2.80 Peers 0.97

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MMM 8.66 Peers 4.50   MMM 2.71 Peers 118.30

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 3.45 Peers 2.49   MMM -2.02 Peers 2.00

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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