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3M (MMM)
NYSE:MMM
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3M (MMM) AI Stock Analysis

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MMM

3M

(NYSE:MMM)

Rating:56Neutral
Price Target:
$158.00
â–²(4.76%Upside)
3M's overall stock score is driven by a challenging financial performance due to declining revenues and high leverage. However, positive earnings call highlights, including strong earnings growth and increased guidance, bolster the score. Technical indicators suggest moderate positive momentum, while valuation metrics imply slight overvaluation. The combination of these factors results in a cautious yet optimistic outlook.
Positive Factors
Earnings Guidance
The guidance for 2025 earnings per share was raised, now fully incorporating tariff impacts, indicating a strong outlook despite external challenges.
New Product Development
New product launches and contract wins are likely to help the company outpace end market demand trends and support margin expansion.
Operational Performance
Solid margin performance and strong expected free cash flow conversion are indicators of ongoing operational improvements under CEO Bill Brown.
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.
Regulatory Uncertainty
Uncertainty remains regarding the administration's plans for PFAS, impacting regulatory and compliance expectations.

3M (MMM) vs. SPDR S&P 500 ETF (SPY)

3M Business Overview & Revenue Model

Company Description3M Company (MMM) is a diversified global technology firm known for its innovation across multiple sectors. It operates in various segments, including Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The company manufactures and sells a wide range of products, such as adhesives, abrasives, laminates, passive fire protection, personal protective equipment, dental and orthodontic products, electronic materials, car-care products, and office supplies. 3M's extensive product portfolio is designed to serve a vast array of industries, enhancing its global reach and market presence.
How the Company Makes Money3M makes money through a diversified revenue model that encompasses several key streams. The company's earnings are primarily generated from the sale of its diverse product lines across its four main business segments. In the Safety and Industrial segment, 3M offers products like personal safety equipment and industrial tapes, which are sold to manufacturing, automotive, and construction industries. The Transportation and Electronics segment provides revenue through electronic components and materials used in the automotive and aerospace industries. The Health Care segment is a significant contributor, with products such as medical and surgical supplies, dental and orthodontic solutions, and health information systems. Lastly, the Consumer segment includes a wide range of consumer products like Post-it notes, Scotch tapes, and home improvement products. 3M's business model is further supported by its strong focus on research and development, allowing the company to continuously innovate and maintain competitive advantage. Additionally, strategic partnerships and acquisitions enhance 3M's product offerings and expand its market footprint.

3M Key Performance Indicators (KPIs)

Any
Any
Net Sales by Segment
Net Sales by Segment
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Chart Insights3M's net sales reveal a mixed performance across segments. The Healthcare segment has been phased out, impacting overall sales. While Safety and Industrial and Consumer segments show stability, the Transportation and Electronics segment faces challenges, aligning with earnings call concerns about auto and electronics weakness. Despite these hurdles, 3M's strategic focus on launching new products and improving margins is promising. The company aims to counter tariff impacts with cost offsets and share buybacks, indicating a proactive approach to maintaining shareholder value.
Data provided by:Main Street Data

3M Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: -5.17%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong earnings growth, increased product launches, and improved operational metrics, contributing to positive performance. However, challenges in the automotive segment, potential softening in consumer electronics, and ongoing PFAS litigation present notable concerns. Despite these challenges, the positives, including robust cash flow and increased guidance, outweigh the negatives.
Q2-2025 Updates
Positive Updates
Strong Earnings and Margins
Adjusted earnings per share of $2.16, up 12% year-over-year, with operating margins increasing by 290 basis points due to productivity and cost controls.
Robust Cash Flow and Shareholder Returns
Free cash flow was solid at $1.3 billion for the quarter with a 110% conversion rate, and $3 billion was returned to shareholders via dividends and share repurchases in the first half.
Increased Product Launches
Launched 64 new products in Q2, a 70% increase from last year, with an aim to exceed the target of 126 launches for the year.
Global Growth and Expansion
Organic sales growth of 1.5%, led by China up mid-single digits, and positive year-on-year growth in all three business groups.
Improved Operational Metrics
On-time and full metric reached 89.6%, the highest in nearly 6 years, with SIBG improving over 300 basis points year-on-year.
Revised Earnings Guidance
Earnings guidance increased to a range of $7.75 to $8, reflecting strong first-half performance and anticipated impact of tariffs.
Negative Updates
Automotive Segment Challenges
Auto aftermarket and OEM segments experienced challenges, with OEM down low single digits impacting growth in Europe and the US.
Consumer Electronics Softening
Consumer electronics expected to soften in the back half of the year due to slower demand for premium devices.
Impact of Tariffs
Tariff impact estimated at $0.20 for the year, affecting second-half margins, even with cost and sourcing changes to mitigate it.
PFAS Litigation Settlements
Settlement with New Jersey on PFAS claims, with ongoing management of other state, federal, and international matters.
Company Guidance
During the 3M Second Quarter Earnings Conference Call on July 18, 2025, the company provided updated guidance and highlighted several key metrics and achievements. Adjusted earnings per share (EPS) for the quarter were $2.16, a 12% increase from the previous year, exceeding expectations. Organic sales growth was reported at 1.5%, with all three business groups showing positive growth for the third consecutive quarter. Operating margins improved by 290 basis points year-over-year, supported by productivity and cost controls, while free cash flow reached $1.3 billion, with a conversion rate of 110%. The company launched 64 new products in Q2, a 70% increase from the prior year, and is on track to exceed its annual product launch target. As a result of the strong first-half performance, 3M increased its full-year EPS guidance to a range of $7.75 to $8.00, incorporating anticipated tariff impacts, and projected organic growth of approximately 2% for the year. Operating margins for the full year are expected to expand by 150 to 200 basis points.

3M Financial Statement Overview

Summary
3M's financials reflect a challenging period with declining revenues, reduced profitability, and high leverage. Cash flow difficulties further compound these issues, with negative free and operating cash flows. Strategic adjustments may be necessary to improve financial stability and growth prospects.
Income Statement
45
Neutral
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
35
Negative
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.57B24.61B26.16B35.35B32.18B
Gross Profit10.13B14.20B10.31B16.56B15.58B
EBITDA7.37B-6.75B8.72B9.58B9.26B
Net Income4.17B-7.00B5.78B5.92B5.45B
Balance Sheet
Total Assets39.87B50.58B46.45B47.07B47.34B
Cash, Cash Equivalents and Short-Term Investments7.73B5.99B3.89B4.76B5.04B
Total Debt13.66B16.85B16.86B18.31B19.75B
Total Liabilities35.97B45.71B31.68B31.95B34.41B
Stockholders Equity3.84B4.81B14.77B15.12B12.93B
Cash Flow
Free Cash Flow638.00M5.07B3.84B5.85B6.61B
Operating Cash Flow1.82B6.68B5.59B7.45B8.11B
Investing Cash Flow-3.21B-1.21B-1.05B-1.32B-580.00M
Financing Cash Flow1.10B-3.15B-5.35B-6.14B-5.30B

3M Technical Analysis

Technical Analysis Sentiment
Positive
Last Price150.82
Price Trends
50DMA
150.01
Positive
100DMA
145.90
Positive
200DMA
140.42
Positive
Market Momentum
MACD
1.40
Positive
RSI
46.89
Neutral
STOCH
15.35
Positive
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 150.82 is below the 20-day moving average (MA) of 153.87, above the 50-day MA of 150.01, and above the 200-day MA of 140.42, indicating a neutral trend. The MACD of 1.40 indicates Positive momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMM.

3M Risk Analysis

3M disclosed 15 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$153.77B27.4833.56%2.32%6.30%0.81%
76
Outperform
$7.19B29.7016.26%0.71%-0.15%39.78%
74
Outperform
$3.83B16.84110.90%0.85%-3.38%26.22%
69
Neutral
$3.51B13.439.63%3.13%-25.50%-45.13%
65
Neutral
$11.08B15.705.19%2.15%3.13%-24.94%
62
Neutral
$3.01B30.692.09%0.29%-0.31%-58.07%
56
Neutral
$80.53B21.0396.00%2.36%-19.56%325.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MMM
3M
150.82
49.53
48.90%
GFF
Griffon
81.43
11.11
15.80%
HON
Honeywell International
239.27
40.99
20.67%
MDU
Mdu Resources Group
17.00
2.64
18.38%
SEB
Seaboard
3,097.51
-36.20
-1.16%
VMI
Valmont
358.44
61.28
20.62%

3M Corporate Events

Executive/Board ChangesShareholder Meetings
3M Shareholders Elect Board, Ratify PwC Appointment
Positive
May 14, 2025

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.

Legal Proceedings
3M Reaches Judicial Consent Order on PFAS Case
Negative
May 12, 2025

3M has reached a Judicial Consent Order with the New Jersey Department of Environmental Protection and other plaintiffs regarding PFAS contamination in the state. The agreement resolves multiple litigations and administrative directives aimed at compelling 3M to address the contamination, including investigations, remediation, and financial compensation for damages. The litigation history includes significant court actions, such as the denial of 3M’s motion to dismiss and the consolidation of cases related to PFAS contamination.

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.

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.Date of analysis: Jul 20, 2025