About 3M Company
3M Company (MMM) is a Healthcare company in the Surgical & Medical Instruments & Apparatus industry with a market capitalisation of $83.6B. The stock trades at 28.41x trailing earnings and yields 1.92%.
- Sector
- Healthcare
- Industry
- Surgical & Medical Instruments & Apparatus
- Market cap
- $83.6B
- P/E ratio
- 28.41
- EPS (TTM)
- $6.00
- Revenue (TTM)
- $24.9B
- Free cash flow
- $1.4B
- Profit margin
- 13.0%
- Dividend yield
- 1.92%
- Shares outstanding
- 515.7M
Financial health: Fair6/10
5 strengths, 3 concerns. Weakest points: debt to equity, net debt vs cash flow, earnings growth.
- Debt to equity: 2.68 (Concern, benchmark < 0.5) — Debt of 2.68x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 5.3y (Concern, benchmark < 4 years) — Net debt of $7.4B is 5.3x annual free cash flow — about 5 years of cash flow to repay.
- Current ratio: 1.71 (Strong, benchmark > 1.5) — Short-term assets cover 1.71x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 69.1% (Strong, benchmark > 15%) — Earns 69.1% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 39.4% (Watch, benchmark > 40%) — Keeps 39.4% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 13.0% (Strong, benchmark > 10%) — Turns 13.0% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $1.4B (Strong, benchmark positive) — Generated $1.4B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 1.5% (Watch, benchmark > 10%) — Revenue changed 1.5% year on year, short of the > 10% mark.
- Earnings growth: -22.1% (Concern, benchmark > 10%) — Earnings changed -22.1% year on year, well short of the > 10% mark.
- Payout ratio: 48.1% (Strong, benchmark < 60%) — Pays out 48.1% of earnings as dividends, leaving room to keep paying.