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3M (MMM)
NYSE:MMM
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3M
(NYSE:MMM)
Select Model
Select Model
Rating:59Neutral
Price Target:
$176.00
â–²(8.76% 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 (MMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.96B
Dividend Yield1.82%
Average Volume (3M)2.25M
Price to Earnings (P/E)25.9
Beta (1Y)0.97
Revenue Growth-13.09%
EPS Growth-20.63%
CountryUS
Employees61,500
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)2.19
Shares Outstanding531,225,040
10 Day Avg. Volume1,290,549
30 Day Avg. Volume2,248,688
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)18.51
Price to Sales (P/S)2.89
P/FCF Ratio111.45
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit9.17
Enterprise Value/Ebitda14.47
Forecast
1Y Price Target
$171.33Price Target Upside5.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
3M Business Overview & Revenue Model
Company Description3M Company operates as a diversified technology company worldwide. It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety. The Healthcare segment offers food safety indicator solutions; health care procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontia solutions; and filtration and purification systems. The Consumer segment provides consumer bandages, braces, supports and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is based in St. Paul, Minnesota.
How the Company Makes Money3M 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 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 Earnings Call Summary
Earnings Call Date:Oct 21, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Positive
3M delivered strong financial and operational results in the third quarter, marked by significant growth in key metrics and successful execution of strategic priorities. However, challenges persist in certain sectors like automotive and roofing granules, and there are impacts from tariffs and stranded costs. While there are areas of concern, the company's strong performance and forward-looking guidance indicate positive momentum.Q3-2025 Updates
Positive Updates
Record-Breaking Operational Metrics
3M delivered organic sales growth of 3.2%, marking the fourth consecutive quarter of positive growth across all business groups. Operating margins increased by 170 basis points, and earnings per share rose by 10% to $2.19.
Strong Free Cash Flow and Financial Guidance
The company reported free cash flow of $1.3 billion with a conversion rate of 111%. Based on strong performance, 3M increased its earnings per share guidance to $7.95 to $8.05 and expects full-year organic sales growth to exceed 2%.
New Product Launches and Innovation
3M launched 70 new products in the quarter and 196 year-to-date, both up about 70% versus last year. Sales from products launched in the last 5 years increased by 30% in Q3.
Operational Excellence Enhancements
3M achieved its highest on-time performance in over 20 years, with a metric of 91.6%, improving 200 basis points sequentially.
Capital Deployment and Shareholder Returns
3M returned $900 million to shareholders in Q3, with $400 million in dividends and $500 million in share repurchases. Year-to-date, $3.9 billion has been returned to shareholders.
Negative Updates
Challenges in Automotive and Roofing Granules
The automotive sector experienced mid-single-digit declines, and the roofing granules market showed unexpected weakness due to the slow housing market and weak consumer sentiment.
Impact of Tariffs and Stranded Costs
The company faced $100 million in tariff impacts and stranded costs, which were partially offset by productivity efforts.
Divestiture of Underperforming Business
3M agreed to sell its precision grinding and finishing business, a segment that has experienced over a decade of sales declines, although this divestiture is not expected to be dilutive to earnings.
Company Guidance
During the 3M Third Quarter Earnings Conference Call for fiscal year 2025, the company provided updated guidance and highlighted several key metrics. 3M reported a strong quarter with organic sales growth of 3.2%, marking the fourth consecutive quarter of positive organic growth across all business groups. Operating margins increased by 170 basis points, and earnings per share rose by 10% to $2.19. The company generated $1.3 billion in free cash flow, achieving a conversion rate of 111%. Based on this performance, 3M raised its full-year earnings per share guidance to a range of $7.95 to $8.05, with expectations of full-year organic sales growth exceeding 2% and adjusted free cash flow conversion remaining above 100%. The company emphasized its focus on commercial excellence, operational efficiency, and new product launches, with 70 new products introduced in the quarter and 196 year-to-date. 3M also highlighted its ongoing efforts to reshape its portfolio, including the divestiture of its precision grinding and finishing business.3M Financial Statement Overview
Summary
3M's financial statements present a mixed picture. The income statement shows moderate growth but declining profitability. The balance sheet highlights high leverage and reduced return on equity, raising financial stability concerns. The cash flow statement indicates liquidity challenges with declining free cash flow. Overall, 3M faces operational and financial challenges that require attention to improve profitability and financial health.Income Statement
3M's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 0.9%, but the gross profit margin has decreased compared to previous years. The net profit margin has also declined, reflecting reduced profitability. EBIT and EBITDA margins have decreased, indicating operational challenges. Overall, the income statement reflects moderate growth with some profitability concerns.Balance Sheet
The balance sheet reveals high leverage, with a debt-to-equity ratio of 2.92 in the TTM period, indicating significant reliance on debt financing. The return on equity has decreased significantly, suggesting reduced efficiency in generating returns for shareholders. The equity ratio is low, highlighting potential financial risk. Overall, the balance sheet suggests financial stability concerns due to high leverage.Cash Flow
3M's cash flow statement shows a decline in free cash flow growth, with a negative growth rate in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio has also decreased, reflecting cash flow challenges. Overall, the cash flow statement indicates potential liquidity concerns.| 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 | 1.59B | 638.00M | 5.07B | 3.84B | 5.85B | 6.61B |
| Operating Cash Flow | 2.54B | 1.82B | 6.68B | 5.59B | 7.45B | 8.11B |
| Investing Cash Flow | 609.00M | -3.21B | -1.21B | -1.05B | -1.32B | -580.00M |
| Financing Cash Flow | -4.48B | 1.10B | -3.15B | -5.35B | -6.14B | -5.30B |
3M Technical Analysis
Positive
161.82
Price Trends
165.80
Negative
160.15
Positive
152.48
Positive
Market Momentum
-1.48
Positive
44.91
Neutral
45.68
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 161.82 is below the 20-day moving average (MA) of 163.56, below the 50-day MA of 165.80, and above the 200-day MA of 152.48, indicating a neutral trend. The MACD of -1.48 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.68 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $76.30B | 33.57 | 10.91% | 1.58% | 2.97% | 18.14% | |
75 Outperform | $124.36B | 20.64 | 35.85% | 2.24% | 7.48% | 9.55% | |
75 Outperform | $162.74B | 47.42 | 6.84% | 0.53% | 2.22% | -7.60% | |
71 Outperform | $72.38B | 24.21 | 91.71% | 2.43% | -0.41% | -10.88% | |
71 Outperform | $8.11B | 35.43 | 14.90% | 0.63% | 1.23% | -22.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $85.96B | 25.86 | 73.38% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
MMM
3M
161.82
33.94
26.54%
DHR
Danaher
230.40
-6.31
-2.67%
EMR
Emerson Electric Company
135.82
15.77
13.14%
HON
Honeywell International
195.88
-8.57
-4.19%
ITW
Illinois Tool Works
249.50
3.69
1.50%
VMI
Valmont
411.71
106.33
34.82%
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.