3M Co (MMM, Financial), a leading player in the Conglomerates industry, is currently trading at $109.73 with a market capitalization of $60.83 billion. The company's stock price has seen a gain of 5.24% today and a 10.04% increase over the past four weeks. This article will provide a comprehensive analysis of 3M Co's financial performance using the GF Score, a stock performance ranking system developed by GuruFocus.
Understanding 3M Co's GF Score
3M Co has a GF Score of 84 out of 100, indicating good outperformance potential. The GF Score is a comprehensive measure of a company's financial performance, taking into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally suggests higher returns, making 3M Co an attractive investment option. 
Financial Strength Analysis
3M Co's Financial Strength Rank stands at 6 out of 10. This rank, provided by GuruFocus, measures the robustness of a company's financial situation. It takes into account the company's debt burden, debt to revenue ratio, and Altman Z-Score. With an interest coverage of 8.40 and a debt to revenue ratio of 0.50, 3M Co demonstrates a manageable debt burden. The company's Altman Z-Score of 3.81 further indicates financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, suggesting high profitability. This rank is based on factors such as operating margin, Piotroski F-Score, and the trend of the operating margin. With an operating margin of 11.86% and a Piotroski F-Score of 6, 3M Co exhibits strong profitability. The company has also maintained consistent profitability over the past 10 years.
Growth Rank Analysis
3M Co's Growth Rank is 6 out of 10, indicating moderate growth prospects. The Growth Rank measures a company's growth in terms of revenue and profitability. With a 5-year revenue growth rate of 3.20% and a 3-year revenue growth rate of 3.20%, 3M Co has demonstrated steady growth over the years.
GF Value Rank Analysis
The company's GF Value Rank is 8 out of 10, suggesting that the stock is fairly valued. The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
3M Co's Momentum Rank is 4 out of 10, indicating moderate momentum. The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators, providing insights into the company's stock price performance.
Competitor Analysis
When compared to its main competitors in the Conglomerates industry, 3M Co holds its ground with a GF Score of 84. Valmont Industries Inc (VMI, Financial) has a higher GF Score of 90, while Seaboard Corp (SEB, Financial) and MDU Resources Group Inc (MDU, Financial) have GF Scores of 84 and 86, respectively.
In conclusion, 3M Co's strong GF Score, coupled with its robust financial strength, high profitability, and moderate growth prospects, make it a compelling investment option. However, investors should also consider the company's momentum and valuation before making investment decisions.
