3M (MMM) AI Stock Analysis

• Market Cap: $87.70B
• Dividend Yield: 1.73%
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.97
• Revenue Growth: -13.09%
• EPS Growth: -20.63%
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.19
• Shares Outstanding: 531,225,040
• 10 Day Avg. Volume: 2,350,669
• 30 Day Avg. Volume: 2,830,834
• PEG Ratio: -0.11
• Price to Book (P/B): 18.51
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 111.45
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: 14.33
• 1Y Price Target: $171.33
• Price Target Upside: 3.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 8.04
• Revenue Forecast (FY): $24.25B

• Rating: 59 Neutral
• Price Target: $176.00 ▲(6.24% Upside)

3M's overall stock score is primarily influenced by its financial performance and valuation concerns. The company's high leverage and declining profitability raise financial stability issues, while a high P/E ratio suggests overvaluation. However, positive technical indicators provide some optimism, indicating potential for price appreciation. The strong earnings call results, although not directly weighted, highlight operational strengths and strategic focus, offering a positive outlook.

Positive Factors

Product Innovation

3M's strong focus on innovation with new product launches enhances its competitive edge and supports long-term revenue growth.

Operational Efficiency

Improved operating margins indicate enhanced operational efficiency, which can lead to sustained profitability and financial health.

Free Cash Flow Generation

Strong free cash flow generation provides financial flexibility for investments, debt reduction, and shareholder returns, supporting long-term stability.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt, posing financial risk and potentially limiting strategic options.

Declining Profitability

Declining profitability can hinder 3M's ability to invest in growth opportunities and maintain competitive positioning.

Liquidity Challenges

Liquidity challenges from declining free cash flow can constrain 3M's ability to fund operations and strategic initiatives.

3M Business Overview & Revenue Model

Company Description

3M Company (MMM) is a diversified technology and manufacturing firm based in the United States, known for its innovation across a wide range of sectors, including healthcare, consumer goods, safety and industrial, and electronics. The company's extensive product portfolio includes adhesives, abrasives, filtration systems, personal protective equipment, and medical products, leveraging its strong emphasis on research and development to create solutions that improve everyday life and enhance productivity for businesses and consumers alike.

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

3M's financial performance is under pressure with declining revenues, reduced profitability, and high leverage. The company faces cash flow difficulties, with negative free and operating cash flows, indicating potential financial risks.

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	24.82B	24.57B	24.61B	34.23B	35.35B	32.18B
Gross Profit	10.08B	10.08B	9.57B	14.97B	16.61B	15.60B
EBITDA	6.38B	7.22B	-8.91B	8.72B	9.58B	9.26B
Net Income	3.40B	4.17B	-7.00B	5.78B	5.92B	5.45B
Balance Sheet
Total Assets	37.61B	39.87B	50.58B	46.45B	47.07B	47.34B
Cash, Cash Equivalents and Short-Term Investments	5.19B	7.73B	5.79B	3.89B	4.76B	5.04B
Total Debt	13.54B	13.66B	16.75B	16.86B	18.31B	19.75B
Total Liabilities	32.94B	35.97B	45.71B	31.68B	31.95B	34.41B
Stockholders Equity	4.63B	3.84B	4.81B	14.72B	15.05B	12.87B
Cash Flow
Free Cash Flow	111.00M	638.00M	5.07B	3.84B	5.85B	6.61B
Operating Cash Flow	1.51B	1.82B	6.68B	5.59B	7.45B	8.11B
Investing Cash Flow	1.90B	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
Financing Cash Flow	-6.67B	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 165.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 165.66 is below the 20-day moving average (MA) of 168.35, above the 50-day MA of 163.57, and above the 200-day MA of 151.44, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 33.55 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
HON	77 Outperform	$120.74B	20.03	35.85%	2.26%	7.48%	9.55%
EMR	76 Outperform	$75.98B	33.43	10.91%	1.56%	2.97%	18.14%
DHR	75 Outperform	$157.68B	45.94	6.84%	0.53%	2.22%	-7.60%
ITW	71 Outperform	$73.55B	24.60	91.71%	2.41%	-0.41%	-10.88%
VMI	71 Outperform	$8.15B	35.61	14.90%	0.62%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$87.70B	26.38	73.38%	1.73%	-13.09%	-20.63%

3M Corporate Events

3M Company Reports Strong Q3 2025 Financial Results

3M Company, a global leader in industrial and consumer products, is renowned for its innovative solutions across various sectors, including safety, industrial, transportation, and electronics. The company is headquartered in St. Paul, Minnesota, and is known for its commitment to operational excellence and customer-focused solutions.