3M Piotroski F Score

MMM
 Stock
  

USD 148.48  1.07  0.73%   

This module uses fundamental data of 3M to approximate its Piotroski F score. 3M F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of 3M Company. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about 3M financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Additionally, see 3M Altman Z Score, 3M Correlation, 3M Valuation, as well as analyze 3M Alpha and Beta and 3M Hype Analysis.
  
3M Debt Current is relatively stable at the moment as compared to the past year. The company's current value of Debt Current is estimated at 1.63 Billion. Debt to Equity Ratio is expected to hike to 2.25 this year, although the value of Total Debt will most likely fall to nearly 16.6 B. 3M Inventory Turnover is relatively stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 4.62. Accrued Expenses Turnover is expected to hike to 18.51 this year, although the value of Accounts Payable Turnover will most likely fall to 12.46.
At this time, it appears that 3M's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsDecreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)ImprovingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

3M Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to 3M is to make sure 3M is not a subject of accounting manipulations and runs a healthy internal audit department. So, if 3M's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if 3M's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares568.2 M579 M
Fairly Down
Decreasing
Slightly volatile
Weighted Average Shares Diluted576 M585.3 M
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations7.7 B7.5 B
Fairly Up
Increasing
Slightly volatile
Total Assets46.3 B47.1 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities30.7 B32 B
Sufficiently Down
Increasing
Slightly volatile
Current Assets15.7 B15.4 B
Fairly Up
Increasing
Slightly volatile
Current Liabilities8.9 BB
Fairly Down
Increasing
Slightly volatile
Total Debt16.6 B18.2 B
Significantly Down
Increasing
Slightly volatile
Return on Average Assets0.120.124
Sufficiently Down
Decreasing
Slightly volatile
Gross Margin0.530.468
Moderately Up
Increasing
Slightly volatile
Asset Turnover0.760.741
Fairly Up
Decreasing
Slightly volatile

3M Company F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between 3M's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards 3M in a much-optimized way.

About 3M Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

568.22 Million

3M Weighted Average Shares is relatively stable at the moment as compared to the past year. The company's current value of Weighted Average Shares is estimated at 568.22 Million

3M Current Valuation Drivers

We derive many important indicators used in calculating different scores of 3M from analyzing 3M's financial statements. These drivers represent accounts that assess 3M's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of 3M's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee53.07 K57.2 K47.52 K56.52 K62.33 K55.46 K
Revenue Per Employee345.84 K350.37 K334.18 K337.85 K372.16 K340.93 K
Average Assets35.12 B37.28 B41.33 B46.01 B47.71 B46.41 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA9.08 B8.47 B7.22 B8.7 B9.12 B9.59 B
Earnings Before Interest Taxes and Depreciation Amortization USD9.08 B8.47 B7.22 B8.7 B9.12 B9.59 B
Earnings before Tax7.54 B6.99 B5.63 B6.79 B7.21 B7.67 B
Average Equity11.57 B10.35 B10.14 B11.44 B14.43 B13.31 B
Enterprise Value149.02 B122.61 B113.98 B117.16 B116.49 B123.17 B
Free Cash Flow4.92 B5.12 B5.49 B6.74 B5.9 B6.04 B
Invested Capital27.75 B28.32 B34.43 B34.78 B32.92 B32.55 B
Invested Capital Average26.18 B28.02 B33.25 B35.53 B33.64 B32.88 B
Market Capitalization140.19 B110.95 B101.45 B100.82 B102.36 B110.57 B
Tangible Asset Value24.54 B23.79 B24.84 B27.71 B28.3 B28.9 B
Working Capital6.59 B6.46 B3.75 B7.03 B6.37 B5.85 B

3M ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, 3M's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to 3M's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About 3M Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze 3M Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of 3M using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of 3M Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
3M Company operates as a diversified technology company worldwide. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M operates under Conglomerates classification in the United States and is traded on New York Stock Exchange. It employs 95000 people.

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Additionally, see 3M Altman Z Score, 3M Correlation, 3M Valuation, as well as analyze 3M Alpha and Beta and 3M Hype Analysis. Note that the 3M Company information on this page should be used as a complementary analysis to other 3M's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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Is 3M's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 3M. If investors know 3M will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about 3M listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.95
Market Capitalization
84.4 B
Quarterly Revenue Growth YOY
-0.028
Return On Assets
0.0893
Return On Equity
0.29
The market value of 3M Company is measured differently than its book value, which is the value of 3M that is recorded on the company's balance sheet. Investors also form their own opinion of 3M's value that differs from its market value or its book value, called intrinsic value, which is 3M's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because 3M's market value can be influenced by many factors that don't directly affect 3M's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between 3M's value and its price as these two are different measures arrived at by different means. Investors typically determine 3M value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 3M's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.