Fundamentals to Watch About 3M Company (MMM)

3M Company (MMM) — Fairly Valued With Tenuous Growth Prospects

3M Company shares moved -32.3% over the last 52 weeks, with a high of $154.66 and a low of $100.16. During this time, the stock lagged the S&P 500 index by -25.0%. As of April 2023, the company's 50-day average price is $108.49. 3M Company provides diversified technology services in the United States and internationally. The large-cap Industrials company has 92,000 full time employees and is based in Saint Paul, MN. 3M Company has returned a 5.8% dividend yield over the last 12 months.

Overview of the Company's Finances:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue $32,136,000 $32,184,000 $35,355,000 $34,229,000
Gross Margins 46.7% 48.4% 46.8% 43.8%
Operating Margins 19.1% 21.2% 21.7% 12.7%
Net Income $4,570,000 $5,384,000 $5,921,000 $5,777,000
Net Margins 14.22% 16.73% 16.75% 16.88%
Earnings Per Share $7.81 $9.25 $10.12 $10.18
Diluted Shares 585,100 582,200 585,300 551,469
Free Cash Flow $5,371,000 $6,612,000 $5,851,000 $3,842,000
Capital Expenditures -$1,699,000 -$1,501,000 -$1,603,000 -$1,749,000
Net Current Assets -$21,562,000 -$19,431,000 -$16,552,000 -$16,997,000
Current Ratio 1.41 1.89 1.7 1.54
Long Term Debt $17,518,000 $17,989,000 $16,056,000 $14,001,000
Net Debt / EBITDA 2.3 1.62 1.33 1.97

3M Company Is Currently Fairly Valued:

Compared to the Industrials sector's average of 20.49, 3M Company has a trailing twelve month P/E ratio of 10.7 and, according to its EPS guidance of 9.5, an expected P/E ratio of 11.4. 3M Company's PEG ratio is 2.12 based on its 5.0% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued. The market is giving 3M Company a fair value in terms of its book value, since its P/B ratio of 3.8 is lower than the sector average, which stands at 3.78. As of the date of publication, the company's shares are trading 35.3% above their Graham number of $75.05.

Analysts Give 3M Company an Average Rating of Hold:

17 analysts are following 3M Company and have set target prices ranging from $100.0 to $210.0 per share. On average, they have given the company a rating of hold. At the current price of $101.56, MMM is trading -15.1% away from its average analyst target price of $119.63 per share, implying an analyst consensus of some upside potential for the stock. The company has an average amount of shares sold short since 2.5% of the company's shares are tied to short positions. Institutions own 68.4% of 3M Company's shares, while the insider ownership rate stands at 0.12%. which is a small amount of insider investors. The company's biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth $4,760,336,353.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.