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3M
(NYSE:MMM)
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Rating:67Neutral
Price Target:
$185.00
â–²(7.17% Upside)
Action:Reiterated
Date:07/22/26
Overall score reflects improving fundamentals and a strong, guidance-raising earnings update, supported by solid price momentum and a clear uptrend. Offsetting these positives are meaningful balance-sheet leverage/thin equity and a relatively expensive valuation (P/E ~30.5) that leaves less room for execution missteps.
Positive Factors
Raised guidance and improving demand/backlog
Management raised full‑year organic growth and reports orders/backlog trending materially higher, indicating durable end‑market recovery and stronger revenue visibility over coming quarters. Sustained order strength supports capacity planning, margins, and recurring revenue from industrial customers.
Negative Factors
Elevated leverage and thin equity base
Very high leverage and a materially reduced equity base constrain financial flexibility, increase refinancing and covenant risk, and magnify downside if earnings slip. Even with strong cash flow, balance sheet repair will require several quarters of consistent excess cash generation or asset actions to materially lower leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised guidance and improving demand/backlog
Management raised full‑year organic growth and reports orders/backlog trending materially higher, indicating durable end‑market recovery and stronger revenue visibility over coming quarters. Sustained order strength supports capacity planning, margins, and recurring revenue from industrial customers.
Read all positive factors
3M Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The Fly3M (MMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.91B
Dividend Yield1.71%
Average Volume (3M)3.67M
Price to Earnings (P/E)31.1
Beta (1Y)1.05
Revenue Growth2.35%
EPS Growth-21.55%
CountryUS
Employees60,500
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)5.66
Shares Outstanding515,722,400
10 Day Avg. Volume4,348,460
30 Day Avg. Volume3,666,705
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)18.19
Price to Sales (P/S)3.43
P/FCF Ratio61.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$182.54Price Target Upside5.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)8.89
Revenue Forecast (FY)$25.37B
3M Business Overview & Revenue Model
Company Description
3M Company operates as a global technology conglomerate with diverse interests. Its extensive operations are strategically divided into four primary business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consume...
How the Company Makes Money
3M makes money primarily by manufacturing and selling consumable and durable products that incorporate its materials science and engineering capabilities, distributed through a mix of direct sales and channel partners. The company’s key revenue st...
3M Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: above-expectation organic growth, margin expansion, strong free cash flow, aggressive share repurchases and dividends, accelerating new product launches and successful strategic moves (JV and Microsoft EBO partnership). Headwinds were acknowledged—consumer weakness, tariff and oil-driven cost pressure, ongoing transformation costs, and pockets of capacity constraints—but management provided mitigation plans (pricing, productivity, capacity scaling) and raised full-year guidance for sales, EPS and free cash flow. On balance, the positive operational and financial trends materially outweigh the identified challenges.Positive Updates
Strong top-line growth and raised sales guidance
Q2 organic sales growth of 5.4% (H1 organic growth 3.3%); orders up ~10% in the quarter and backlog ~20% YoY. Company raised full-year organic growth guidance from 3.0% to greater than 3.5%.
Negative Updates
Consumer segment weakness and channel destocking
Consumer business down 2.1% in Q2 and down 1.7% for H1. Despite healthy POS trends earlier in the year, retailer inventory destocking in late June offset momentum and U.S. consumer remains cautious; company expects back-half consumer to be flat to slightly up but is monitoring retailer inventories.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong top-line growth and raised sales guidance
Q2 organic sales growth of 5.4% (H1 organic growth 3.3%); orders up ~10% in the quarter and backlog ~20% YoY. Company raised full-year organic growth guidance from 3.0% to greater than 3.5%.
Read all positive updates
Company Guidance
3M raised its 2026 guidance, now targeting organic sales growth of greater than 3.5% (up from 3%), adjusted EPS of $8.80–$8.95 (versus prior $8.50–$8.70; ~+$0.27 at the midpoint, ~9–11% YoY), and boosted free cash flow by $100M to $4.7–$4.9B (implying conversion >100%); the company now assumes oil-related inflation of $150–$175M (up from $125M) that should be dollar‑neutral via price actions but press ~20 bps on margin rate, while pricing for the year is expected near ~1.5% (about 2 points in H2). The update implies H2 organic growth in the high‑3s (>2x macro), roughly 100 bps of margin expansion year‑over‑year in the back half and ~+$0.30 EPS contribution at the midpoint of H2; tax rate guidance remains about 20%, operating profit seasonality is unchanged, and the company says it is tracking ahead of its Investor Day targets on growth, margin and cash/return‑to‑shareholder commitments.3M Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
42
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.18B | 24.95B | 24.57B | 24.61B | 34.23B | 35.35B |
| Gross Profit | 9.92B | 9.87B | 10.08B | 9.57B | 14.97B | 16.61B |
| EBITDA | 5.45B | 5.85B | 7.22B | -8.91B | 8.72B | 9.58B |
| Net Income | 3.00B | 3.25B | 4.17B | -7.00B | 5.78B | 5.92B |
Balance Sheet | ||||||
| Total Assets | 34.92B | 37.73B | 39.87B | 50.58B | 46.45B | 47.07B |
| Cash, Cash Equivalents and Short-Term Investments | 3.33B | 5.93B | 7.73B | 5.79B | 3.89B | 4.76B |
| Total Debt | 12.55B | 12.94B | 13.66B | 16.75B | 16.86B | 18.31B |
| Total Liabilities | 31.92B | 32.99B | 35.97B | 45.71B | 31.68B | 31.95B |
| Stockholders Equity | 2.95B | 4.70B | 3.84B | 4.81B | 14.72B | 15.05B |
Cash Flow | ||||||
| Free Cash Flow | 3.98B | 1.40B | 638.00M | 5.07B | 3.84B | 5.85B |
| Operating Cash Flow | 4.90B | 2.31B | 1.82B | 6.68B | 5.59B | 7.45B |
| Investing Cash Flow | -363.00M | 1.35B | -3.21B | -1.21B | -1.05B | -1.32B |
| Financing Cash Flow | -3.22B | -4.02B | 1.10B | -3.15B | -5.35B | -6.14B |
3M Risk Analysis
3M disclosed 16 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $82.56B | 25.94 | 101.74% | 2.28% | 4.30% | -3.22% | |
74 Outperform | $77.03B | 8.99 | 41.71% | 4.05% | -2.41% | 53.63% | |
71 Outperform | $83.91B | 34.44 | 12.11% | 1.48% | 4.03% | 3.51% | |
68 Neutral | $137.07B | 34.53 | 7.66% | 0.75% | 4.56% | 19.34% | |
67 Neutral | $90.91B | 31.14 | 77.12% | 1.75% | 2.35% | -21.55% | |
67 Neutral | $9.30B | 19.01 | 29.84% | 0.60% | 3.80% | 138.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
MMM
3M
176.28
31.13
21.44%
DHR
Danaher
194.98
-1.03
-0.53%
EMR
Emerson Electric Company
149.82
9.48
6.76%
HON
Honeywell International
243.05
29.66
13.90%
ITW
Illinois Tool Works
286.95
39.62
16.02%
VMI
Valmont
481.70
118.57
32.65%
3M Corporate Events
Executive/Board Changes
3M Appoints Cummins CEO Jennifer Rumsey to Board
Positive
Jun 8, 2026
On June 8, 2026, 3M announced that Jennifer W. Rumsey, chair and chief executive officer of Cummins Inc., was elected to its board of directors, effective June 5, 2026, and appointed to the board’s Science, Technology and Sustainability Comm...
Business Operations and StrategyShareholder Meetings
3M Shareholders Back Board, Auditor and Executive Pay
Positive
May 13, 2026
On May 12, 2026, 3M held its 2026 annual meeting of shareholders, where investors elected all ten director nominees to the board for one-year terms, signaling broad support for the company’s current leadership slate. Shareholders also ratifi...
Private Placements and FinancingRegulatory Filings and Compliance
3M Establishes New Material Financing Facility Agreement
Neutral
May 6, 2026
3M Company disclosed that it entered into a material definitive agreement related to a financing facility, as referenced in a filing made under the Securities Exchange Act of 1934. The report was formally executed on May 6, 2026, by Executive Vice...
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.