Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

3M Company (MMM)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$49.19 - $73.18$60.63
Multi-Stage$190.81 - $210.77$200.58
Blended Fair Value$130.61
Current Price$155.18
Upside-15.84%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-9.78%-1.11%3.646.076.186.276.226.085.865.144.914.70
YoY Growth---40.14%-1.72%-1.49%0.94%2.17%3.85%13.91%4.67%4.57%15.57%
Dividend Yield--2.48%6.46%7.03%5.04%3.86%5.33%3.31%2.80%3.07%3.37%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,401.00
(-) Cash Dividends Paid (M)2,339.00
(=) Cash Retained (M)1,062.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)680.20425.13255.08
Cash Retained (M)1,062.001,062.001,062.00
(-) Cash Required (M)-680.20-425.13-255.08
(=) Excess Retained (M)381.80636.88806.93
(/) Shares Outstanding (M)545.08545.08545.08
(=) Excess Retained per Share0.701.171.48
LTM Dividend per Share4.294.294.29
(+) Excess Retained per Share0.701.171.48
(=) Adjusted Dividend4.995.465.77
WACC / Discount Rate5.13%5.13%5.13%
Growth Rate-4.55%-3.55%-2.55%
Fair Value$49.19$60.63$73.18
Upside / Downside-68.30%-60.93%-52.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,401.003,280.233,163.763,051.422,943.072,838.562,923.72
Payout Ratio68.77%73.02%77.26%81.51%85.75%90.00%92.50%
Projected Dividends (M)2,339.002,395.202,444.462,487.202,523.822,554.702,704.44

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.13%5.13%5.13%
Growth Rate-4.55%-3.55%-2.55%
Year 1 PV (M)2,254.612,278.232,301.85
Year 2 PV (M)2,165.912,211.532,257.63
Year 3 PV (M)2,074.422,140.312,207.57
Year 4 PV (M)1,981.412,065.762,152.78
Year 5 PV (M)1,887.931,988.922,094.19
PV of Terminal Value (M)93,639.9898,649.08103,870.28
Equity Value (M)104,004.27109,333.83114,884.29
Shares Outstanding (M)545.08545.08545.08
Fair Value$190.81$200.58$210.77
Upside / Downside22.96%29.26%35.82%

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