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3M (MMM)
NYSE:MMM
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3M
(NYSE:MMM)
Rating:66Neutral
Price Target:
$160.00
▲(9.97%Upside)
Positive Factors
Financial Performance
A good operational quarter with a beat on margins, evidence of ongoing traction on execution here.
Market Demand
Orders in April and May were described as strong, with backlog increasing, indicating demand is outpacing revenue growth.
Product Innovation
The CEO highlighted improvement in product launches, surpassing expectations for new products, which is seen as a growth driver for the company.
Negative Factors
Legal Challenges
Personal injury cases remain outstanding, and those bellwethers will begin to crank up, which could continue to justify an unusual discount.
Settlement Costs
The Chamber Works settlement is materially higher than expectations.
Tariff Impact
The company reaffirmed guidance while calling out $0.20-0.40c of additional potential headwind from tariffs.
3M (MMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.31B
Dividend Yield1.97%
Average Volume (3M)2.89M
Price to Earnings (P/E)18.4
Beta (1Y)1.02
Revenue Growth-24.93%
EPS GrowthN/A
CountryUS
Employees61,500
SectorIndustrials
Sector Strength91
IndustryConglomerates
Share Statistics
EPS (TTM)1.88
Shares Outstanding538,181,340
10 Day Avg. Volume2,679,610
30 Day Avg. Volume2,891,155
Financial Highlights & Ratios
PEG Ratio3.54
Price to Book (P/B)17.37
Price to Sales (P/S)0.00
P/FCF Ratio-1.11K
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit8.41
Enterprise Value/Ebitda3.60
Forecast
1Y Price Target
$152.00Price Target Upside4.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
3M Business Overview & Revenue Model
Company Description3M 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 Money3M 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 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:
Main Street Data
Main Street Data3M Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 15.95%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of 3M's performance, highlighting strong earnings, margin improvements, and new product launches. However, concerns were noted regarding the impact of tariffs and weakness in key sectors like auto and electronics.Q1-2025 Updates
Positive Updates
Strong Earnings and Margin Improvement
First quarter adjusted earnings per share of $1.88, up 10% versus last year with operating margins increasing by 220 basis points year over year.
Positive Organic Sales Growth
Organic sales growth was 1.5%, with all business groups posting positive growth.
Increased New Product Launches
Launched 62 new products in Q1, a 60% increase year-over-year, with a goal to launch 215 new products this year.
Strong Cash Flow and Shareholder Returns
Free cash flow was solid at $0.5 billion; returned $1.7 billion to shareholders and raised the dividend by 4%.
Operational Excellence Initiatives
On-time in full delivery increased to 89%, the best in five years, and equipment utilization improved by 4 percentage points.
Negative Updates
Tariff Impact Concerns
Tariffs are expected to have a $400 million impact this year, with a potential $0.60 EPS headwind before mitigation efforts.
Weakness in Auto and Electronics
Continued weakness in auto builds, particularly in Europe and the US, with mid-single-digit decline in auto OEM business.
Geographic Challenges
Organic sales decreased in Europe due to a weak environment and high single-digit decline in auto builds.
Company Guidance
During the 3M First Quarter Earnings Conference Call, guidance for the fiscal year 2025 was outlined with several key metrics. The company reported a strong start with first-quarter adjusted earnings per share of $1.88, representing a 10% increase compared to last year, and organic sales growth of 1.5%. Operating margins improved by 220 basis points year-over-year, and free cash flow was approximately $0.5 billion. The company aims to launch 215 new products this year, with a long-term goal of 1,000 new products over the next three years. 3M has set its full-year adjusted earnings per share guidance between $7.60 and $7.90, excluding the impact of tariffs, and plans to mitigate the $0.60 EPS headwind from tariffs with $0.20 to $0.40 in offsets. The company also raised its dividend by 4%, authorized a $7.5 billion share repurchase program, and expects to execute $2 billion in share buybacks, up from the previously anticipated $1.5 billion.3M Financial Statement Overview
Summary
3M presents a mixed financial picture with strong profitability metrics like EBIT margin and ROE but is offset by high leverage and declining revenues. Cash flow issues further compound these challenges, suggesting a need for careful financial management to navigate potential risks.Income Statement
3M's income statement shows a stable gross profit margin with a current TTM of 40.96%. However, net income has been inconsistent, with a TTM net profit margin of 17.79%. Revenue growth has been negative in recent years, reflecting a decline in sales from 2021 to 2024. The EBIT margin for TTM is strong at 20.06%, suggesting efficient operations despite revenue challenges.68
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 3.15, indicating significant leverage, which could pose financial risks. The equity ratio stands at 11.18%, signaling a low proportion of equity financing. Return on equity is robust at 97.68% for TTM, driven by the low equity base, but this also highlights potential volatility in returns.54
Neutral
Cash Flow
3M's cash flow statement shows a decline in operating cash flow with a TTM free cash flow of -$69 million. The free cash flow growth rate is negative, reflecting cash flow challenges. The operating cash flow to net income ratio is 0.22, indicating that operating activities are not strongly supporting net income.45
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 24.51B | 24.57B | 32.68B | 34.23B | 35.35B | 32.18B | Gross Profit |
| 10.04B | 10.13B | 14.20B | 15.00B | 16.56B | 15.58B | EBIT |
| 4.92B | 4.82B | -9.13B | 6.54B | 5.45B | 4.47B | EBITDA |
| 6.60B | 4.82B | -6.75B | 8.72B | 9.58B | 9.26B | Net Income Common Stockholders |
| 4.36B | 4.17B | -7.00B | 5.78B | 5.92B | 5.45B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.02B | 7.73B | 5.99B | 3.89B | 4.76B | 5.04B | Total Assets |
| 39.95B | 39.87B | 50.58B | 46.45B | 47.07B | 47.34B | Total Debt |
| 14.07B | 13.66B | 16.85B | 16.20B | 17.63B | 19.05B | Net Debt |
| 7.74B | 8.06B | 10.92B | 12.54B | 13.06B | 14.42B | Total Liabilities |
| 35.43B | 35.97B | 45.71B | 31.68B | 31.95B | 34.41B | Stockholders Equity |
| 4.46B | 3.84B | 4.81B | 14.77B | 15.12B | 12.93B |
| Cash Flow | Free Cash Flow | ||||
| -69.00M | 638.00M | 5.07B | 3.84B | 5.85B | 6.61B | Operating Cash Flow |
| 973.00M | 1.82B | 6.68B | 5.59B | 7.45B | 8.11B | Investing Cash Flow |
| -1.59B | -3.21B | -1.21B | -1.05B | -1.32B | -580.00M | Financing Cash Flow |
| -3.94B | 1.10B | -3.15B | -5.35B | -6.14B | -5.30B |
3M Technical Analysis
Neutral
145.50
Price Trends
141.52
Positive
144.76
Positive
137.34
Positive
Market Momentum
1.25
Positive
49.05
Neutral
34.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMM, the sentiment is Neutral. The current price of 145.5 is below the 20-day moving average (MA) of 148.52, above the 50-day MA of 141.52, and above the 200-day MA of 137.34, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.54B | 18.95 | 22.84% | 0.76% | -0.57% | 116.12% | |
80 Outperform | $147.03B | 26.28 | 33.56% | 1.95% | 6.30% | 0.81% | |
71 Outperform | $3.31B | 14.57 | 110.90% | 0.98% | -3.38% | 26.22% | |
68 Neutral | $3.43B | 13.13 | 9.63% | 3.06% | -25.50% | -45.13% | |
66 Neutral | $78.31B | 18.38 | 94.75% | 1.97% | -24.93% | ― | |
66 Neutral | $4.51B | 12.29 | 5.40% | 248.53% | 4.14% | -12.41% | |
54 Neutral | $2.70B | 27.51 | 2.09% | 0.32% | -0.31% | -58.07% |
* Industrials Sector Average
Performance Comparison
MMM
3M
144.23
45.61
46.25%
GFF
Griffon
70.81
6.37
9.89%
HON
Honeywell International
227.13
20.73
10.04%
MDU
Mdu Resources Group
16.84
3.44
25.67%
SEB
Seaboard
2,705.14
-438.18
-13.94%
VMI
Valmont
324.70
62.12
23.66%
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.
Legal Proceedings
3M Reaches Judicial Consent Order on PFAS Case
Negative
May 12, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.