3M Company (MMM) shares moved -28.0% over the last 52 weeks, and as of Friday, were trading 55.2% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:
√(22.5 * earnings per share * book value per share) = √(22.5 * 11.46 * 4.9) = $81.04
3M Company operates as a diversified technology company worldwide. The large-cap Industrials company has 95,000 full time employees and is based in Saint Paul, United States. 3M Company has a current dividend yield of 4.74%.
Here's a Snapshot of 3M's Income Statement, Balance Sheet, and Cash Flow:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue | $32,765,000,000.0 | $32,136,000,000.0 | $32,184,000,000.0 | $35,355,000,000.0 |
| Revenue Growth | n/a | -1.92% | 0.15% | 9.85% |
| Gross Margins | 49.17% | 46.9% | 48.74% | 46.89% |
| Gross Margins Growth | n/a | -4.62% | 3.92% | -3.8% |
| Operating Margins | 23.71% | 19.62% | 22.23% | 22.03% |
| Operating Margins Growth* | n/a | -17.25% | 13.3% | -0.9% |
| Earnings Per Share | $6.32 | $8.16 | $7.93 | $8.89 |
| EPS Growth | n/a | 29.11% | -2.82% | 12.11% |
| Free Cash Flow | $4,862,000,000.0 | $5,371,000,000.0 | $6,612,000,000.0 | $5,851,000,000.0 |
| FCF Growth | n/a | 10.47% | 23.11% | -11.51% |
| Net Debt to EBIT | 1.64 | 1.98 | 2.7 | 1.46 |
Compared to the Industrials sector's average of 21.46, 3M Company has a trailing twelve month price to earnings (P/E) ratio of 11.0 and an expected P/E ratio of 12.0. 3M Company's price to book (P/B) ratio is 4.9 compared to the sector average of 3.7.
Currently trading -2.29% away from its average target price of $128.71, 3M Company has an average rating of hold and target prices ranging from $210 to $110. 2.4% of the company's shares are tied to short positions, and 68.0% of its shares are held by institutional investors.
Overall, the Market Inference analysis team sees this stock as being fairly valued with mixed growth indicators and mixed market sentiment.
