3M (MMM) AI Stock Analysis

• Market Cap: $86.47B
• Dividend Yield: 1.82%
• Average Volume (3M): 4.37M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.00
• Revenue Growth: -13.09%
• EPS Growth: -20.63%
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 1.83
• Shares Outstanding: 526,700,000
• 10 Day Avg. Volume: 3,323,865
• 30 Day Avg. Volume: 4,372,583
• PEG Ratio: -1.30
• Price to Book (P/B): 18.19
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 61.28
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 9.70
• Enterprise Value/Ebitda: 16.47
• 1Y Price Target: $177.11
• Price Target Upside: 6.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 8.67
• Revenue Forecast (FY): $25.18B

• Rating: 55 Neutral
• Price Target: $169.00 ▲(1.16% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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, multi‑segment business

3M’s broad industrial, healthcare, safety and consumer footprint spreads demand risk across end markets and geographies. That durable diversification supports steadier revenue streams, cross‑sell opportunities and pricing leverage tied to technology and industrial end‑market cycles.

Innovation and new product momentum

A step‑up in NPI (284 launches in 2025, target ~350 in 2026) and >20% sales contribution from recent launches signals sustainable organic growth potential. Consistent product innovation enhances differentiation, supports premium pricing and is cited as a material driver of outperformance versus macro over multiple years.

Strong free cash flow and capital returns

High FCF conversion (quarterly ~130%, full‑year >100%) and large shareholder returns ($4.8B in 2025, planned ~$2.5B repurchases in 2026) demonstrate durable cash generation capacity. Reliable FCF supports reinvestment in NPI, deleveraging potential and ongoing capital allocation choices.

Negative Factors

Elevated leverage and compressed equity

High debt relative to a compressed equity base reduces financial flexibility and increases vulnerability to earnings volatility. Elevated leverage limits capacity for opportunistic investments or large litigation settlements, and artificially amplifies ROE making it less reflective of operating strength.

Uneven multi‑year revenue and profit profile

The company shows volatile earnings (large 2023 loss, 2025 margins stepped down vs. 2024) and essentially flat revenues across years. Inconsistent top‑line and intermittent FCF growth weaken forecasting confidence and raise risk that margin/earnings improvements may be cyclical rather than structural.

Ongoing litigation, PFAS and tariff/stranded‑cost pressure

Persistent PFAS litigation and regulatory exposure, plus tariff and stranded‑cost headwinds (Q4 tariff impact cited near $100M; stranded costs rising into 2026), create prolonged, unpredictable cash outflows and higher operating costs that can materially erode margins and restrict strategic choices.

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 and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety. The Healthcare segment offers food safety indicator solutions; health care procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontia solutions; and filtration and purification systems. The Consumer segment provides consumer bandages, braces, supports and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is based in St. Paul, Minnesota.

How the Company Makes Money

3M generates revenue through multiple streams, primarily by selling a vast array of products across its various business segments. The company operates in four main sectors: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. Each segment contributes to its overall revenue through the sale of specialized products and solutions tailored to specific industry needs. Key revenue streams include the sale of industrial adhesives and tapes, personal protective equipment, and healthcare products like wound care and infection prevention solutions. 3M's strong focus on innovation helps maintain a competitive edge, allowing it to command premium pricing for its technologically advanced products. The company also benefits from strategic partnerships and collaborations with other businesses and organizations, enhancing its reach and distribution capabilities. Additionally, 3M often engages in licensing agreements and provides consulting services, which further diversifies its income sources.

3M Financial Statement Overview

Summary

Profitability rebounded strongly from 2023 with solid gross and EBIT margins, but results remain uneven (2025 profitability stepped down vs. 2024) and revenue growth is unclear. Balance-sheet risk is the main drag: leverage is elevated with a compressed equity base, reducing flexibility. Cash flow is positive and improved in 2025, though cash conversion and recent FCF momentum are less consistent than earlier years.

Income Statement

Profitability improved sharply versus 2023 (return to positive net income in 2024–2025), and 2025 still shows solid gross and operating margins (about 40% gross margin and ~20% EBIT margin). However, the earnings profile is volatile (large loss in 2023), and 2025 profitability stepped down from 2024 (net margin fell from ~17% to ~13%). Revenue is essentially flat over multiple years, with 2025 growth appearing unusually high versus the prior year and not reflected in the revenue levels shown, which adds uncertainty to the growth narrative.

Balance Sheet

Leverage is elevated: debt-to-equity is high in 2024–2025 (roughly 3.6x and 2.7x) with a relatively small equity base versus total debt. While total debt has come down from 2023, equity remains compressed compared with earlier years (notably 2020–2022), leaving less balance-sheet flexibility. Return on equity is very high in 2024–2025, but that is partly driven by low equity rather than purely stronger underlying economics, increasing risk if profits weaken.

Cash Flow

Free cash flow is positive and improved in 2025 versus 2024, and cash generation relative to net income is decent in 2025 (free cash flow is ~61% of net income). That said, cash conversion has weakened versus earlier years (2020–2022), operating cash flow is modest relative to the earnings base in 2024–2025, and free cash flow growth is negative in 2024 and 2025—suggesting less consistent cash momentum despite the earnings recovery.

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

• Technical Analysis Sentiment: Positive
• Last Price: 167.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 167.06 is above the 20-day moving average (MA) of 163.62, above the 50-day MA of 163.26, and above the 200-day MA of 156.14, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 is Neutral, 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	75 Outperform	$8.96B	27.10	20.41%	0.63%	1.23%	-22.77%
ITW	72 Outperform	$85.35B	28.23	93.75%	2.43%	-0.41%	-10.88%
HON	70 Outperform	$153.29B	32.78	31.71%	2.24%	7.48%	9.55%
EMR	69 Neutral	$84.99B	36.91	11.31%	1.58%	2.97%	18.14%
DHR	67 Neutral	$147.32B	41.30	7.05%	0.53%	2.90%	-4.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	55 Neutral	$86.47B	27.34	76.08%	1.82%	-13.09%	-20.63%

3M Corporate Events

3M Appoints Neil Mitchill as Independent Board Director

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 Audit Committee and the Nominating and Governance Committee. The board has classified Mitchill as an independent director with significant financial expertise, including designation as an audit committee financial expert, and his extensive background in senior finance roles at RTX, United Technologies, and PricewaterhouseCoopers is expected to strengthen 3M’s governance, oversight of financial reporting, and strategic decision-making for shareholders and other stakeholders.

The most recent analyst rating on (MMM) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on 3M stock, see the MMM Stock Forecast page.