3M (MMM) AI Stock Analysis

• Market Cap: $84.08B
• Dividend Yield: 1.79%
• Average Volume (3M): 3.73M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.99
• Revenue Growth: -19.56%
• EPS Growth: 325.26%
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 2.16
• Shares Outstanding: 532,629,700
• 10 Day Avg. Volume: 3,279,026
• 30 Day Avg. Volume: 3,729,221
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 9.19
• Enterprise Value/Ebitda: 13.10
• 1Y Price Target: $157.40
• Price Target Upside: -1.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: $156.00 ▼(-2.62% Downside)

3M's overall stock score is influenced primarily by its financial performance challenges, including declining revenues and high leverage. However, the positive earnings call, with strong earnings growth and improved operational metrics, provides a counterbalance. Technical analysis and valuation offer moderate support, but the financial difficulties remain a significant concern.

Positive Factors

Earnings Performance

The 2Q earnings per share of $2.16 surpassed both the consensus of $2.01 and the internal estimate of $1.99, driven by strong performance in Safety & Industrial and Consumer sectors.

Operational Improvements

Solid margin performance and strong expected free cash flow conversion are indicators of ongoing operational improvements under CEO Bill Brown.

Product Innovation

New product launches and contract wins are likely to help the company outpace end market demand trends and support margin expansion.

Negative Factors

Demand Environment

MMM's stock underperforming reflects some investor concerns regarding a still muted demand environment impacting topline growth.

Litigation Risks

Litigation with an additional 30 states is outstanding, which could pose financial risks for the company.

Volume Risks

It is considered a risk that the first half volumes may be overstated, leading to potential volume digestion in the second half.

3M Business Overview & Revenue Model

Company Description

3M (MMM) is a diversified technology company known for its innovation and wide range of products across various sectors, including healthcare, consumer goods, electronics, and industrial applications. Established in 1902, 3M operates in multiple markets, providing products such as adhesives, abrasives, dental and orthodontic products, medical devices, and personal protective equipment. The company's commitment to research and development drives its ability to create advanced solutions tailored to meet the needs of its diverse customer base.

How the Company Makes Money

3M generates revenue through a diversified portfolio of products and services across multiple sectors. Its key revenue streams include sales from industrial and safety products, healthcare solutions, consumer products, and electronic materials. The company leverages its extensive research and development capabilities to introduce new and innovative products, which helps sustain its competitive edge. Additionally, 3M has formed significant partnerships with various industries, enhancing its market reach. The company also benefits from strong brand recognition and a global distribution network, which contribute to its overall earnings by enabling it to serve a broad customer base effectively.

3M Financial Statement Overview

Summary

3M's financials reflect substantial challenges, with declining revenues, reduced profitability, and high leverage. Cash flow difficulties further compound these issues, with negative free and operating cash flows. The overall financial health suggests potential risks, and strategic adjustments may be necessary to improve financial stability and growth prospects.

Income Statement

The income statement indicates a challenging period for 3M. The TTM Gross Profit Margin is approximately 41%, and the Net Profit Margin is around 16%. While these margins are reasonable, the company has experienced a declining revenue trend, with a negative revenue growth rate over recent years. The EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet highlights financial strain, with a high debt-to-equity ratio exceeding 3, indicating significant leverage. The Return on Equity has been volatile, with recent negative values reflecting profitability issues. The equity ratio is low, suggesting a reliance on debt financing, which could pose risks if market conditions deteriorate.

Cash Flow

Cash flow analysis reveals concerns, with a negative TTM Free Cash Flow and a negative operating cash flow, signaling cash generation difficulties. The Free Cash Flow to Net Income ratio is negative, and the Operating Cash Flow to Net Income ratio is also unfavorable. These figures highlight challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.60B	24.57B	24.61B	34.23B	35.35B	32.18B
Gross Profit	10.00B	10.08B	9.57B	14.97B	16.61B	15.60B
EBITDA	7.01B	7.22B	-8.91B	8.72B	9.58B	9.26B
Net Income	3.94B	4.17B	-7.00B	5.78B	5.92B	5.45B
Balance Sheet
Total Assets	37.99B	39.87B	50.58B	46.45B	47.07B	47.34B
Cash, Cash Equivalents and Short-Term Investments	4.21B	7.73B	5.79B	3.89B	4.76B	5.04B
Total Debt	13.73B	13.66B	16.75B	16.86B	18.31B	19.75B
Total Liabilities	33.64B	35.97B	45.71B	31.68B	31.95B	34.41B
Stockholders Equity	4.29B	3.84B	4.81B	14.72B	15.05B	12.87B
Cash Flow
Free Cash Flow	-1.98B	638.00M	5.07B	3.84B	5.85B	6.61B
Operating Cash Flow	-1.00B	1.82B	6.68B	5.59B	7.45B	8.11B
Investing Cash Flow	-1.06B	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
Financing Cash Flow	-4.36B	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMM, the sentiment is Positive. The current price of 160.2 is above the 20-day moving average (MA) of 151.95, above the 50-day MA of 150.62, and above the 200-day MA of 141.85, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 97.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMM.

3M Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	77 Outperform	$7.48B	35.29	14.51%	0.68%	-0.15%	24.55%
SEB	72 Outperform	$3.40B	24.71	2.92%	0.25%	4.70%	-44.60%
HON	68 Neutral	$137.78B	24.67	34.60%	2.03%	7.16%	0.21%
GFF	64 Neutral	$3.39B	54.34	48.69%	0.92%	-3.37%	-61.83%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
MMM	58 Neutral	$84.08B	21.95	96.00%	1.79%	-19.56%	325.26%
MDU	56 Neutral	$3.39B	15.75	7.98%	2.74%	-40.60%	-47.10%

3M Corporate Events

3M Shareholders Elect Board, Ratify PwC Appointment

At the 2025 Annual Meeting of Shareholders held on May 13, 2025, 3M‘s shareholders elected eleven nominees to the Board of Directors for a one-year term, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s Named Executive Officers. These decisions reflect shareholder support for the company’s leadership and financial oversight, potentially impacting 3M’s strategic direction and stakeholder confidence.

The most recent analyst rating on (MMM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on 3M stock, see the MMM Stock Forecast page.