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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:58Neutral
Price Target:
$156.00
â–²(0.45% Upside)
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
Growth Strategy
MMM continues to progress on its 'self-help' growth actions, such as new product introductions likely leading to better pricing dynamics.
Operational Improvements
Solid margin performance and strong expected free cash flow conversion are indicators of ongoing operational improvements under CEO Bill Brown.
Negative Factors
Litigation Risks
Litigation with an additional 30 states is outstanding, which could pose financial risks for the company.
Market Environment
Lingering macro uncertainty is impacting MMM’s end market trends in the near-term, with select end markets such as consumer, autos, and electronics potentially remaining soft.
Regulatory Challenges
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 (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 Money3M 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 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 Safety and Industrial segment shows a gradual recovery, with recent quarters indicating stabilization. However, the Healthcare segment's sales have ceased, likely due to strategic divestments or restructuring. Despite challenges in the automotive and consumer electronics sectors, 3M's overall performance is buoyed by strong earnings growth, improved margins, and robust cash flow. The company's increased product launches and positive guidance suggest a strategic focus on innovation and operational efficiency, countering potential risks from tariffs and ongoing litigation.
Data provided by:Main Street Data

3M Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with impressive EPS growth, margin improvements, and successful new product launches. However, challenges in the auto and consumer segments, along with ongoing PFAS litigation and tariff impacts, pose significant risks. The overall sentiment reflects a well-executed strategy amid a challenging macroeconomic environment.
Q2-2025 Updates
Positive Updates
Strong Earnings Performance
Adjusted earnings per share (EPS) of $2.16, up 12% year-over-year, exceeding expectations.
Organic Sales Growth
Reported 1.5% organic sales growth, with all three business groups showing positive growth for three consecutive quarters.
Operating Margin Improvement
Operating margins increased by 290 basis points year-on-year due to productivity gains and cost controls.
New Product Innovation
Launched 64 new products in Q2, up 70% from the previous year, with new product sales up 9% in the first half.
Commercial Excellence Initiatives
Implemented successful commercial excellence initiatives, leading to higher order rates and improved pricing discipline.
Operational Excellence Achievements
On-time and full metric reached 89.6%, the highest in nearly six years, with improvements in equipment effectiveness and quality costs.
Capital Deployment and Shareholder Returns
Returned $3 billion to shareholders through dividends and share buybacks, with continued capital deployment flexibility.
Geographical Growth Performance
China showed mid-single-digit growth, with strong performance in industrial adhesives, films, and electronics bonding solutions.
Negative Updates
Weakness in Auto and Consumer Segments
Auto and automotive aftermarket segments continued to face challenges, with consumer sentiment remaining cautious.
Tariff and FX Headwinds
Tariffs expected to have a $0.20 net impact on EPS, with additional FX headwinds affecting financial performance.
PFAS Litigation Overhang
Ongoing PFAS-related litigation and settlements, including a settlement with New Jersey, continues to pose a financial risk.
Second Half Margin Pressure
Guidance for lower operating margins in the second half due to tariff impacts, stranded costs, and increased investments.
Company Guidance
During the 3M Second Quarter Earnings Conference Call, the company reported strong performance with an adjusted earnings per share of $2.16, marking a 12% increase over the previous year and surpassing expectations. Organic sales growth reached 1.5%, with all three business groups experiencing positive growth for the third consecutive quarter. Operating margins improved by 290 basis points compared to the previous year, driven by productivity and cost control initiatives. The company also achieved solid free cash flow of $1.3 billion, representing a 110% conversion rate. In the second quarter, 3M launched 64 new products, a 70% increase from the previous year, contributing to a 9% rise in five-year new product sales for the first half. The company's on-time and full metric reached 89.6%, its highest in nearly six years, and the cost per quality metric decreased by 30 basis points sequentially and 90 basis points year-over-year. For 2025, 3M has raised its earnings guidance to a range of $7.75 to $8.00, inclusive of anticipated tariff impacts, and expects approximately 2% organic growth for the year.

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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.60B24.57B24.61B34.23B35.35B32.18B
Gross Profit10.00B10.08B9.57B14.97B16.61B15.60B
EBITDA7.01B7.22B-8.91B8.72B9.58B9.26B
Net Income3.94B4.17B-7.00B5.78B5.92B5.45B
Balance Sheet
Total Assets37.99B39.87B50.58B46.45B47.07B47.34B
Cash, Cash Equivalents and Short-Term Investments4.21B7.73B5.79B3.89B4.76B5.04B
Total Debt13.73B13.66B16.75B16.86B18.31B19.75B
Total Liabilities33.64B35.97B45.71B31.68B31.95B34.41B
Stockholders Equity4.29B3.84B4.81B14.72B15.05B12.87B
Cash Flow
Free Cash Flow-1.98B638.00M5.07B3.84B5.85B6.61B
Operating Cash Flow-1.00B1.82B6.68B5.59B7.45B8.11B
Investing Cash Flow-1.06B-3.21B-1.21B-1.05B-1.32B-580.00M
Financing Cash Flow-4.36B1.10B-3.15B-5.35B-6.14B-5.30B

3M Technical Analysis

Technical Analysis Sentiment
Positive
Last Price155.30
Price Trends
50DMA
153.12
Positive
100DMA
147.84
Positive
200DMA
143.41
Positive
Market Momentum
MACD
0.87
Positive
RSI
52.88
Neutral
STOCH
45.77
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 155.3 is above the 20-day moving average (MA) of 155.10, above the 50-day MA of 153.12, and above the 200-day MA of 143.41, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$7.45B34.1914.51%0.68%-0.15%24.55%
74
Outperform
$136.60B24.3334.60%2.11%7.16%0.21%
73
Outperform
$74.91B27.8210.86%1.59%4.78%59.68%
73
Outperform
$77.44B23.31109.06%2.26%-1.40%11.65%
69
Neutral
$142.52B42.366.68%0.59%-3.24%-16.60%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
58
Neutral
$82.83B21.1496.00%1.86%-19.56%325.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MMM
3M
155.30
29.21
23.17%
DHR
Danaher
200.21
-64.59
-24.39%
EMR
Emerson Electric Company
132.55
35.98
37.26%
HON
Honeywell International
214.25
20.15
10.38%
ITW
Illinois Tool Works
266.24
28.36
11.92%
VMI
Valmont
377.91
113.85
43.12%

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.

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: Aug 06, 2025