* Note: Prices are in Million (M) USD.
Description:
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,712 M
Debt : $13,326 M
EBITDA : $7,018 M
Net Debt (Debt - Cash): $9,614 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Diversified industrials
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.11
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $4,217 M
Average Revenue: $28,686 M
Revenue Converted To Free Cash Flow (%): 14.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $24,575 M
Revenue 4 Years Ago (2020-12-31): $32,184 M
Last 5 Years Average Revenue Growth: -5%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $552 M
Share Count 5 Years Ago (2020-12-31): $582 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $8.49
Trailing 12-Month Earnings Per Share (EPS): $8.00
Average Earnings Per Share (EPS): $8.25
Dividend Per Share (DPS): $3
Payout Ratio: 35%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 31.0%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $158
52-Week Low: $120
Threshold Price (15% Above 52-Week Low): $138
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $80,331 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above 3M Company (MMM) stock.
Last 20 Years Avg PE 17.55, Fair Value PE 15, Industry Based PE 20, RCFC Based PE 21.76, ROE Based PE 34.79, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 21.03. Value-Trades has assined P/E value 21.03. Since an average (Current Year EPS + Next Year EPS) earning per share is $8.245.
The fair value of 3M Company (MMM) stock should be (21.03 x $8.245) = $173.4.
