3M (MMM)
NYSE:MMM
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3M
(NYSE:MMM)
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Rating:55Neutral
Price Target:
$147.00
â–²(2.77% Upside)
Action:ReiteratedDate:02/06/26
The score is held back primarily by elevated leverage and an uneven multi-year financial profile despite improved profitability and positive free cash flow. Guidance and commentary point to continued margin/earnings improvement and strong shareholder returns, supporting the outlook, while technicals are neutral-to-mildly supportive and valuation appears demanding versus the modest dividend yield.
Positive Factors
Diversified industrial portfolio and global footprint
3M's spread across Safety & Industrial, Transportation & Electronics and Consumer plus meaningful growth in China and India helps smooth cycles. Geographic and segment diversity supports steadier revenue mix and resilience to single-market downturns over months and across industrial cycles.
Negative Factors
Elevated leverage and compressed equity base
High debt relative to a reduced equity base limits balance-sheet flexibility and increases downside risk. Elevated leverage constrains capacity for large M&A, raises refinancing sensitivity, and amplifies earnings volatility impact on solvency during multi-quarter stress or prolonged weak demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified industrial portfolio and global footprint
3M's spread across Safety & Industrial, Transportation & Electronics and Consumer plus meaningful growth in China and India helps smooth cycles. Geographic and segment diversity supports steadier revenue mix and resilience to single-market downturns over months and across industrial cycles.
Read all positive factors
3M (MMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.34B
Dividend Yield1.82%
Average Volume (3M)3.99M
Price to Earnings (P/E)26.3
Beta (1Y)1.06
Revenue Growth-13.09%
EPS Growth-20.63%
CountryUS
Employees61,500
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)1.83
Shares Outstanding526,700,000
10 Day Avg. Volume4,121,215
30 Day Avg. Volume3,993,410
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)18.19
Price to Sales (P/S)3.43
P/FCF Ratio61.28
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.33
Enterprise Value/Gross Profit8.42
Enterprise Value/Ebitda14.30
Forecast
1Y Price Target
$177.11Price Target Upside23.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)8.67
Revenue Forecast (FY)$25.18B
3M Business Overview & Revenue Model
Company Description
3M Company operates as a diversified technology company worldwide. It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The Safety and Industrial segment offers industrial abrasives a...
How the Company Makes Money
3M primarily makes money by manufacturing and selling products to businesses, governments, and consumers through its operating segments, with revenue recognized largely from product sales (rather than subscriptions or usage-based fees). Key revenu...
3M Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The Fly3M Earnings Call Summary
Earnings Call Date:Jan 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized clear operational improvements, strong margin expansion, robust free cash flow and capital returns, and accelerating commercial excellence and innovation delivery. Management provided constructive 2026 guidance (higher organic growth, modest margin expansion, and EPS upside) and articulated a multi-year transformation plan to further improve margins and portfolio focus. Key near-term headwinds include consumer softness, auto aftermarket weakness, tariff and stranded-cost pressure, and ongoing litigation/PFAS risk. Overall, the company presented measurable progress and a positive outlook while acknowledging identifiable near-term risks.Positive Updates
Organic Sales Growth and Acceleration
Q4 organic sales growth of 2.2% and full-year organic growth of ~2.1% (company noted growth accelerated from ~1.5% H1 to 2.7% H2). Company expects ~3% organic growth in 2026, reflecting acceleration vs. 2025.
Negative Updates
Consumer Business Weakness
Consumer Business Group (CBG) Q4 organic sales declined ~2.2%; full-year CBG revenue down ~0.3%. Management cited weak U.S. consumer sentiment, sluggish retail traffic, elevated channel inventory early in Q4, and promotional activity that pressured Q4 results.
Read all updates
Q4-2025 Updates
Positive
Negative
Organic Sales Growth and Acceleration
Q4 organic sales growth of 2.2% and full-year organic growth of ~2.1% (company noted growth accelerated from ~1.5% H1 to 2.7% H2). Company expects ~3% organic growth in 2026, reflecting acceleration vs. 2025.
Read all positive updates
Company Guidance
3M guided to roughly 3% organic sales growth in 2026, adjusted operating margin expansion of 70–80 basis points (total company income up about $400M at the midpoint), diluted EPS of $8.50–$8.70, and adjusted free cash flow conversion greater than 100%. Management expects business-group margin expansion of over $450M (≈100 bps) driven by roughly $875M of volume and net productivity, partially offset by PFAS, stranded costs, tariff impacts and an incremental $225M of growth/productivity investments, with corporate & other income down $50–75M. They said sales growth should accelerate through the year (SIBG+TEBG >3% in Q1), EPS/margin expansion should be evenly split between halves, and plan to deploy capital including ~ $2.5B of gross share repurchases in 2026.3M Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
50
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.95B | 24.57B | 24.61B | 34.23B | 35.35B |
| Gross Profit | 9.87B | 10.08B | 9.57B | 14.97B | 16.61B |
| EBITDA | 5.85B | 7.22B | -8.91B | 8.72B | 9.58B |
| Net Income | 3.25B | 4.17B | -7.00B | 5.78B | 5.92B |
Balance Sheet | |||||
| Total Assets | 37.73B | 39.87B | 50.58B | 46.45B | 47.07B |
| Cash, Cash Equivalents and Short-Term Investments | 5.93B | 7.73B | 5.79B | 3.89B | 4.76B |
| Total Debt | 12.94B | 13.66B | 16.75B | 16.86B | 18.31B |
| Total Liabilities | 32.99B | 35.97B | 45.71B | 31.68B | 31.95B |
| Stockholders Equity | 4.70B | 3.84B | 4.81B | 14.72B | 15.05B |
Cash Flow | |||||
| Free Cash Flow | 1.40B | 638.00M | 5.07B | 3.84B | 5.85B |
| Operating Cash Flow | 2.31B | 1.82B | 6.68B | 5.59B | 7.45B |
| Investing Cash Flow | 1.35B | -3.21B | -1.21B | -1.05B | -1.32B |
| Financing Cash Flow | -4.02B | 1.10B | -3.15B | -5.35B | -6.14B |
3M Technical Analysis
Negative
143.04
Price Trends
158.38
Negative
161.68
Negative
157.20
Negative
Market Momentum
-4.71
Positive
34.85
Neutral
43.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMM, the sentiment is Negative. The current price of 143.04 is below the 20-day moving average (MA) of 150.44, below the 50-day MA of 158.38, and below the 200-day MA of 157.20, indicating a bearish trend. The MACD of -4.71 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMM.
3M Risk Analysis
3M disclosed 16 risk factors in its most recent earnings report. 3M reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
3M Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.66B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
72 Outperform | $74.66B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
69 Neutral | $70.51B | 30.81 | 11.61% | 1.58% | 2.97% | 18.14% | |
69 Neutral | $141.83B | 24.26 | 31.25% | 2.24% | 7.48% | 9.55% | |
67 Neutral | $128.36B | 44.80 | 6.99% | 0.53% | 2.90% | -4.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $75.34B | 26.32 | 71.89% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
MMM
3M
143.04
-1.16
-0.81%
DHR
Danaher
181.52
-22.08
-10.84%
EMR
Emerson Electric Company
125.40
17.55
16.28%
HON
Honeywell International
223.12
27.80
14.24%
ITW
Illinois Tool Works
259.04
14.05
5.73%
VMI
Valmont
392.04
108.79
38.41%
3M Corporate Events
Executive/Board Changes
3M Appoints Neil Mitchill as Independent Board Director
Positive
Feb 5, 2026
On February 3, 2026, 3M’s board elected Neil G. Mitchill, Jr., currently executive vice president and chief financial officer of RTX Corporation, to join 3M’s Board of Directors effective February 6, 2026, and appointed him to the Audi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.