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3M Co (MMM) Piotroski F-Score : 8 (As of Oct. 29, 2024)


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What is 3M Co Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

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 8. It is a good or high score, which usually indicates a very healthy situation.

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: 4   Med: 6   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of 3M Co was 8. The lowest was 4. 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 Piotroski F-Score Chart

3M Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 7.00 4.00 5.00

3M Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial 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 4.00 5.00 5.00 7.00 8.00

Competitive Comparison of 3M Co's Piotroski F-Score

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's Piotroski F-Score Distribution in the Conglomerates Industry

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 into.


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 (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 945 + 928 + 1145 + 1372 = $4,390 Mil.
Cash Flow from Operations was 1986 + 767 + 1021 + -1787 = $1,987 Mil.
Revenue was 14073 + 8003 + 6255 + 6294 = $34,625 Mil.
Gross Profit was 6784 + 3674 + 2684 + 2647 = $15,789 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(49621 + 50580 + 55243 + 43377 + 40875) / 5 = $47939.2 Mil.
Total Assets at the begining of this year (Sep23) was $49,621 Mil.
Long-Term Debt & Capital Lease Obligation was $11,762 Mil.
Total Current Assets was $16,299 Mil.
Total Current Liabilities was $11,391 Mil.
Net Income was 541 + 976 + -6841 + -2075 = $-7,399 Mil.

Revenue was 8079 + 8031 + 6283 + 6270 = $28,663 Mil.
Gross Profit was 3494 + 3418 + 2555 + 2554 = $12,021 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(46176 + 46455 + 46886 + 48880 + 49621) / 5 = $47603.6 Mil.
Total Assets at the begining of last year (Sep22) was $46,176 Mil.
Long-Term Debt & Capital Lease Obligation was $13,426 Mil.
Total Current Assets was $16,198 Mil.
Total Current Liabilities was $15,466 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 4,390. ==> 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 1,987. ==> 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 (Sep23)
=4390/49621
=0.08847061

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-7399/46176
=-0.16023475

3M Co's return on assets of this year was 0.08847061. 3M Co's return on assets of last year was -0.16023475. ==> 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 4,390. 3M Co's current Cash Flow from Operations (TTM) was 1,987. ==> 1,987 <= 4,390 ==> CFROA <= ROA ==> Score 0.

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: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=11762/47939.2
=0.24535245

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=13426/47603.6
=0.28203749

3M Co's gearing of this year was 0.24535245. 3M Co's gearing of last year was 0.28203749. ==> 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: Sep24)=Total Current Assets/Total Current Liabilities
=16299/11391
=1.43086647

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=16198/15466
=1.04732963

3M Co's current ratio of this year was 1.43086647. 3M Co's current ratio of last year was 1.04732963. ==> This year's current ratio is higher. ==> Score 1.

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 552.7. 3M Co's number of shares in issue last year was 554.3. ==> 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
=15789/34625
=0.456

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=12021/28663
=0.41939085

3M Co's gross margin of this year was 0.456. 3M Co's gross margin of last year was 0.41939085. ==> This year's gross margin is higher. ==> Score 1.

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 (Sep23)
=34625/49621
=0.69778924

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=28663/46176
=0.62073371

3M Co's asset turnover of this year was 0.69778924. 3M Co's asset turnover of last year was 0.62073371. ==> This year's asset turnover is higher. ==> Score 1.

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+0+1+1+1+1+1
=8

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

3M Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

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

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3M Co Business Description

Address
3M Center, St. Paul, MN, USA, 55144
3M, a multinational conglomerate founded in 1902, sells tens of thousands of products ranging from sponges to respirators. The firm is well known for its extensive research and development capabilities, and it is a pioneer in inventing new use cases for its proprietary technologies. 3M is organized across three business segments: safety and industrial (representing around 44% of revenue), transportation and electronics (36%), and consumer (20%). The firm recently spun off its healthcare business, now known as Solventum. Nearly half of 3M's revenue comes from outside the Americas.
Executives
Michael F Roman 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
Chavez Rodriguez Beatriz Karina officer: Senior Vice President 3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Thomas W Sweet director ONE DELL WAY, ROUND ROCK TX 78682
Bryan C Hanson officer: Group Pres & CEO Health Care ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580
Audrey Choi director 3M COMPANY, 3M CENTER, BUILDING 220-9E-02, ST. PAUL MN 55144-1000
Eric D. Hammes officer: VP, Corp Controller & CAO 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST. PAUL MN 55144-1000
Goralski Christian T Jr officer: Group President 3M COMPANY, 3M CENTER, BUILDING 220-9E-02, ST. PAUL MN 55144-1000
Pedro Pizarro director 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Anne H Chow director 2200 WEST PARKWAY BLVD., SALT LAKE CITY UT 84119
Kevin H Rhodes officer: EVP & Chief Legal Officer 3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
John Patrick Banovetz officer: Sr Vice President 3M CENTER, MAPLEWOOD MN 55144
Zoe L Dickson officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Michael G. Vale officer: Executive Vice President 3M CENTER OFFICE OF GENERAL COUNSEL, ST PAUL MN 551441000
Mojdeh Poul officer: Executive Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000