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3M Co (NYSE:MMM) Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

3M Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for 3M Co's Piotroski F-Score or its related term are showing as below:

MMM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of 3M Co was 9. The lowest was 3. And the median was 6.


3M Co Piotroski F-Score Historical Data

The historical data trend for 3M Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

3M Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 6.00 7.00 4.00

3M Co Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 4.00 6.00

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

3M Co Piotroski F-Score Distribution

For the Conglomerates industry and Industrials sector, 3M Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where 3M Co's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Net Income was 78 + 3859 + 541 + 976 = $5,454 Mil.
Cash Flow from Operations was 1127 + 1531 + 1922 + 1275 = $5,855 Mil.
Revenue was 8702 + 8619 + 8079 + 8031 = $33,431 Mil.
Gross Profit was 3609 + 3891 + 3494 + 3418 = $14,412 Mil.
Average Total Assets from the begining of this year (Mar22)
to the end of this year (Mar23) was
(45855 + 45634 + 46176 + 46455 + 46886) / 5 = $46201.2 Mil.
Total Assets at the begining of this year (Mar22) was $45,855 Mil.
Long-Term Debt & Capital Lease Obligation was $13,575 Mil.
Total Current Assets was $14,963 Mil.
Total Current Liabilities was $10,556 Mil.
Net Income was 1524 + 1434 + 1339 + 1299 = $5,596 Mil.

Revenue was 8950 + 8942 + 8612 + 8829 = $35,333 Mil.
Gross Profit was 4231 + 4089 + 3914 + 4003 = $16,237 Mil.
Average Total Assets from the begining of last year (Mar21)
to the end of last year (Mar22) was
(47180 + 48307 + 48278 + 47072 + 45855) / 5 = $47338.4 Mil.
Total Assets at the begining of last year (Mar21) was $47,180 Mil.
Long-Term Debt & Capital Lease Obligation was $15,409 Mil.
Total Current Assets was $14,452 Mil.
Total Current Liabilities was $9,152 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

3M Co's current Net Income (TTM) was 5,454. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

3M Co's current Cash Flow from Operations (TTM) was 5,855. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar22)
=5454/45855
=0.11894014

ROA (Last Year)=Net Income/Total Assets (Mar21)
=5596/47180
=0.11860958

3M Co's return on assets of this year was 0.11894014. 3M Co's return on assets of last year was 0.11860958. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

3M Co's current Net Income (TTM) was 5,454. 3M Co's current Cash Flow from Operations (TTM) was 5,855. ==> 5,855 > 5,454 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=13575/46201.2
=0.29382354

Gearing (Last Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=15409/47338.4
=0.32550741

3M Co's gearing of this year was 0.29382354. 3M Co's gearing of last year was 0.32550741. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar23)=Total Current Assets/Total Current Liabilities
=14963/10556
=1.41748768

Current Ratio (Last Year: Mar22)=Total Current Assets/Total Current Liabilities
=14452/9152
=1.57910839

3M Co's current ratio of this year was 1.41748768. 3M Co's current ratio of last year was 1.57910839. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

3M Co's number of shares in issue this year was 553.2. 3M Co's number of shares in issue last year was 575. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=14412/33431
=0.43109689

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=16237/35333
=0.45954207

3M Co's gross margin of this year was 0.43109689. 3M Co's gross margin of last year was 0.45954207. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar22)
=33431/45855
=0.72905899

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar21)
=35333/47180
=0.74889784

3M Co's asset turnover of this year was 0.72905899. 3M Co's asset turnover of last year was 0.74889784. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

3M Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3M Co  (NYSE:MMM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


3M Co Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of 3M Co's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


3M Co (NYSE:MMM) Business Description

3M Co logo
Address
3M Center, St. Paul, MN, USA, 55144
3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.
Executives
Suzan Kereere director 255 FISERV DRIVE, BROOKFIELD WI 53045
Kevin H Rhodes officer: EVP & Chief Legal Officer 3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Peter D Gibbons officer: Group President 2401 UTAH AVENUE SOUTH, SUITE 800, SEATTLE WA 98134
Chavez Rodriguez Beatriz Karina officer: Senior Vice President 3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Mark W. Murphy officer: Executive Vice President ONE ST. JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Zoe L Dickson officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
James R Fitterling director 2211 H.H. DOW WAY, MIDLAND MI 48674
Jeffrey R Lavers officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Veena M Lakkundi officer: Senior Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Monish D Patolawala officer: Senior VP and CFO 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Vinita Lee Piper other: IVM001 712 WILCREST, SUITE 3020, HOUSTON TX 77042
Pamela Craig director C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Ty R Silberhorn officer: Senior Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Theresa E Reinseth officer: Vice President/CAO 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Denise R Rutherford officer: Senior Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000

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