3M (MMM) AI Stock Analysis

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3M

(NYSE:MMM)

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Neutral 58 (OpenAI - 4o)

Rating:58Neutral

Price Target:

$156.00

▼(-0.32% Downside)

3M's overall stock score is influenced primarily by its financial performance challenges, including declining revenues and high leverage. However, the positive earnings call, with strong earnings growth and improved operational metrics, provides a counterbalance. Technical analysis and valuation offer moderate support, but the financial difficulties remain a significant concern.

Positive Factors

Product Innovation

The significant increase in product launches demonstrates 3M's commitment to innovation, enhancing its competitive edge and market position.

Operational Efficiency

Improved operational efficiency through cost controls boosts profitability, ensuring long-term financial health and competitive advantage.

Cash Flow Generation

Strong cash flow generation supports 3M's ability to invest in growth opportunities and return value to shareholders, enhancing financial stability.

Negative Factors

Declining Revenue

A declining revenue trend poses a risk to 3M's growth prospects, potentially impacting its market position and long-term financial performance.

High Leverage

High leverage can strain 3M's financial flexibility, increasing risk in adverse market conditions and limiting strategic options.

Cash Flow Difficulties

Challenges in cash generation may impact 3M's ability to fund operations and growth initiatives, affecting long-term sustainability.

3M (MMM) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$83.44B

Dividend Yield1.84%

Average Volume (3M)2.93M

Price to Earnings (P/E)21.8

Beta (1Y)0.96

Revenue Growth-19.56%

EPS Growth325.26%

CountryUS

Employees61,500

SectorIndustrials

Sector Strength72

IndustryConglomerates

Share Statistics

EPS (TTM)2.16

Shares Outstanding532,629,700

10 Day Avg. Volume2,840,123

30 Day Avg. Volume2,925,480

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.10

Enterprise Value/Revenue3.73

Enterprise Value/Gross Profit9.19

Enterprise Value/Ebitda13.10

Forecast

1Y Price Target

$157.56

Price Target Upside0.68% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

3M Business Overview & Revenue Model

Company Description3M (MMM) is a diversified technology company known for its innovation and wide range of products across various sectors, including healthcare, consumer goods, electronics, and industrial applications. Established in 1902, 3M operates in multiple markets, providing products such as adhesives, abrasives, dental and orthodontic products, medical devices, and personal protective equipment. The company's commitment to research and development drives its ability to create advanced solutions tailored to meet the needs of its diverse customer base.

How the Company Makes Money3M generates revenue through a diversified portfolio of products and services across multiple sectors. Its key revenue streams include sales from industrial and safety products, healthcare solutions, consumer products, and electronic materials. The company leverages its extensive research and development capabilities to introduce new and innovative products, which helps sustain its competitive edge. Additionally, 3M has formed significant partnerships with various industries, enhancing its market reach. The company also benefits from strong brand recognition and a global distribution network, which contribute to its overall earnings by enabling it to serve a broad customer base effectively.

3M Key Performance Indicators (KPIs)

Any

Net Sales by Segment

Net Sales by Segment
Shows sales performance across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.

Chart Insights3M's Safety and Industrial segment shows a gradual recovery, with recent quarters indicating stabilization. However, the Healthcare segment's sales have ceased, likely due to strategic divestments or restructuring. Despite challenges in the automotive and consumer electronics sectors, 3M's overall performance is buoyed by strong earnings growth, improved margins, and robust cash flow. The company's increased product launches and positive guidance suggest a strategic focus on innovation and operational efficiency, countering potential risks from tariffs and ongoing litigation.

Data provided by:

Main Street Data

3M Earnings Call Summary

Earnings Call Date:Jul 18, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 28, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with impressive EPS growth, margin improvements, and successful new product launches. However, challenges in the auto and consumer segments, along with ongoing PFAS litigation and tariff impacts, pose significant risks. The overall sentiment reflects a well-executed strategy amid a challenging macroeconomic environment.

Q2-2025 Updates

Positive Updates

Strong Earnings Performance

Adjusted earnings per share (EPS) of $2.16, up 12% year-over-year, exceeding expectations.

Organic Sales Growth

Reported 1.5% organic sales growth, with all three business groups showing positive growth for three consecutive quarters.

Operating Margin Improvement

Operating margins increased by 290 basis points year-on-year due to productivity gains and cost controls.

New Product Innovation

Launched 64 new products in Q2, up 70% from the previous year, with new product sales up 9% in the first half.

Commercial Excellence Initiatives

Implemented successful commercial excellence initiatives, leading to higher order rates and improved pricing discipline.

Operational Excellence Achievements

On-time and full metric reached 89.6%, the highest in nearly six years, with improvements in equipment effectiveness and quality costs.

Capital Deployment and Shareholder Returns

Returned $3 billion to shareholders through dividends and share buybacks, with continued capital deployment flexibility.

Geographical Growth Performance

China showed mid-single-digit growth, with strong performance in industrial adhesives, films, and electronics bonding solutions.

Negative Updates

Weakness in Auto and Consumer Segments

Auto and automotive aftermarket segments continued to face challenges, with consumer sentiment remaining cautious.

Tariff and FX Headwinds

Tariffs expected to have a $0.20 net impact on EPS, with additional FX headwinds affecting financial performance.

PFAS Litigation Overhang

Ongoing PFAS-related litigation and settlements, including a settlement with New Jersey, continues to pose a financial risk.

Second Half Margin Pressure

Guidance for lower operating margins in the second half due to tariff impacts, stranded costs, and increased investments.

Company Guidance

During the 3M Second Quarter Earnings Conference Call, the company reported strong performance with an adjusted earnings per share of $2.16, marking a 12% increase over the previous year and surpassing expectations. Organic sales growth reached 1.5%, with all three business groups experiencing positive growth for the third consecutive quarter. Operating margins improved by 290 basis points compared to the previous year, driven by productivity and cost control initiatives. The company also achieved solid free cash flow of $1.3 billion, representing a 110% conversion rate. In the second quarter, 3M launched 64 new products, a 70% increase from the previous year, contributing to a 9% rise in five-year new product sales for the first half. The company's on-time and full metric reached 89.6%, its highest in nearly six years, and the cost per quality metric decreased by 30 basis points sequentially and 90 basis points year-over-year. For 2025, 3M has raised its earnings guidance to a range of $7.75 to $8.00, inclusive of anticipated tariff impacts, and expects approximately 2% organic growth for the year.

3M Financial Statement Overview

Summary

3M's financials reflect substantial challenges, with declining revenues, reduced profitability, and high leverage. Cash flow difficulties further compound these issues, with negative free and operating cash flows. The overall financial health suggests potential risks, and strategic adjustments may be necessary to improve financial stability and growth prospects.

Income Statement

Neutral

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

Negative

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

Negative

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	24.60B	24.57B	24.61B	34.23B	35.35B	32.18B
Gross Profit	10.00B	10.08B	9.57B	14.97B	16.61B	15.60B
EBITDA	7.01B	7.22B	-8.91B	8.72B	9.58B	9.26B
Net Income	3.94B	4.17B	-7.00B	5.78B	5.92B	5.45B
Balance Sheet
Total Assets	37.99B	39.87B	50.58B	46.45B	47.07B	47.34B
Cash, Cash Equivalents and Short-Term Investments	4.21B	7.73B	5.79B	3.89B	4.76B	5.04B
Total Debt	13.73B	13.66B	16.75B	16.86B	18.31B	19.75B
Total Liabilities	33.64B	35.97B	45.71B	31.68B	31.95B	34.41B
Stockholders Equity	4.29B	3.84B	4.81B	14.72B	15.05B	12.87B
Cash Flow
Free Cash Flow	-1.98B	638.00M	5.07B	3.84B	5.85B	6.61B
Operating Cash Flow	-1.00B	1.82B	6.68B	5.59B	7.45B	8.11B
Investing Cash Flow	-1.06B	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
Financing Cash Flow	-4.36B	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

Technical Analysis Sentiment

Positive

Last Price156.50

Price Trends

50DMA

153.68

Positive

100DMA

149.54

Positive

200DMA

144.42

Positive

Market Momentum

MACD

0.97

Negative

RSI

53.76

Neutral

STOCH

54.69

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 156.5 is above the 20-day moving average (MA) of 155.48, above the 50-day MA of 153.68, and above the 200-day MA of 144.42, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.69 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	78 Outperform	7.46B	35.17	14.24%	0.68%	-0.15%	24.55%
HON	74 Outperform	134.43B	24.07	35.52%	2.13%	7.16%	0.21%
SEB	72 Outperform	3.73B	27.10	2.87%	0.23%	4.70%	-44.60%
GFF	66 Neutral	3.68B	58.95	109.49%	0.91%	-3.37%	-61.83%
MMM	58 Neutral	$83.44B	21.79	96.00%	1.84%	-19.56%	325.26%
MDU	54 Neutral	3.32B	15.45	7.89%	3.26%	-40.60%	-47.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

MMM

155.16

23.93

18.24%

DHR

Danaher

192.94

-82.04

-29.83%

EMR

Emerson Electric Company

131.00

26.84

25.77%

HON

Honeywell International

211.68

12.12

6.07%

ITW

Illinois Tool Works

262.48

10.58

4.20%

VMI

Valmont

374.32

92.34

32.75%

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.

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.Date of analysis: Aug 06, 2025