3M (MMM) AI Stock Analysis

• Market Cap: $80.53B
• Dividend Yield: 2.36%
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.00
• Revenue Growth: -19.56%
• EPS Growth: 325.26%
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 94
• Industry: Conglomerates
• EPS (TTM): 2.16
• Shares Outstanding: 532,629,700
• 10 Day Avg. Volume: 4,368,920
• 30 Day Avg. Volume: 3,330,975
• PEG Ratio: -2.29
• Price to Book (P/B): 19.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.84
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 9.02
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: $158.45
• Price Target Upside: 5.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 56 Neutral
• Price Target: $158.00 ▲(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 Business Overview & Revenue Model

Company Description

3M 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 Money

3M 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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.57B	24.61B	26.16B	35.35B	32.18B
Gross Profit	10.13B	14.20B	10.31B	16.56B	15.58B
EBITDA	7.37B	-6.75B	8.72B	9.58B	9.26B
Net Income	4.17B	-7.00B	5.78B	5.92B	5.45B
Balance Sheet
Total Assets	39.87B	50.58B	46.45B	47.07B	47.34B
Cash, Cash Equivalents and Short-Term Investments	7.73B	5.99B	3.89B	4.76B	5.04B
Total Debt	13.66B	16.85B	16.86B	18.31B	19.75B
Total Liabilities	35.97B	45.71B	31.68B	31.95B	34.41B
Stockholders Equity	3.84B	4.81B	14.77B	15.12B	12.93B
Cash Flow
Free Cash Flow	638.00M	5.07B	3.84B	5.85B	6.61B
Operating Cash Flow	1.82B	6.68B	5.59B	7.45B	8.11B
Investing Cash Flow	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
Financing Cash Flow	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	80 Outperform	$153.77B	27.48	33.56%	2.32%	6.30%	0.81%
VMI	76 Outperform	$7.19B	29.70	16.26%	0.71%	-0.15%	39.78%
GFF	74 Outperform	$3.83B	16.84	110.90%	0.85%	-3.38%	26.22%
MDU	69 Neutral	$3.51B	13.43	9.63%	3.13%	-25.50%	-45.13%
Sector *	65 Neutral	$11.08B	15.70	5.19%	2.15%	3.13%	-24.94%
SEB	62 Neutral	$3.01B	30.69	2.09%	0.29%	-0.31%	-58.07%
MMM	56 Neutral	$80.53B	21.03	96.00%	2.36%	-19.56%	325.26%

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.

3M Reaches Judicial Consent Order on PFAS Case

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.