3M (MMM) AI Stock Analysis

• Market Cap: $86.04B
• Dividend Yield: 1.82%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.97
• Revenue Growth: -13.09%
• EPS Growth: -20.63%
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.19
• Shares Outstanding: 531,225,040
• 10 Day Avg. Volume: 2,824,379
• 30 Day Avg. Volume: 2,764,640
• PEG Ratio: -0.11
• Price to Book (P/B): 18.51
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 111.45
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 14.47
• 1Y Price Target: $171.33
• Price Target Upside: 7.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 8.04
• Revenue Forecast (FY): $24.25B

• Rating: 59 Neutral
• Price Target: $176.00 ▲(10.00% 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 Business Overview & Revenue Model

Company Description

3M 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 Money

3M 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 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

• Technical Analysis Sentiment: Negative
• Last Price: 160.00
• 50DMA: Negative
• 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 Negative. The current price of 160 is below the 20-day moving average (MA) of 167.14, below the 50-day MA of 164.81, and above the 200-day MA of 152.01, indicating a neutral trend. The MACD of -1.12 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMM.

3M Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	77 Outperform	$126.41B	20.98	35.85%	2.24%	7.48%	9.55%
EMR	76 Outperform	$74.71B	32.87	10.91%	1.58%	2.97%	18.14%
DHR	75 Outperform	$158.82B	46.27	6.84%	0.53%	2.22%	-7.60%
ITW	71 Outperform	$72.57B	24.27	91.71%	2.43%	-0.41%	-10.88%
VMI	71 Outperform	$8.11B	35.42	14.90%	0.63%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$86.04B	25.88	73.38%	1.82%	-13.09%	-20.63%

3M Corporate Events

3M Company Reports Strong Q3 2025 Financial Results

3M Company, a global leader in industrial and consumer products, is renowned for its innovative solutions across various sectors, including safety, industrial, transportation, and electronics. The company is headquartered in St. Paul, Minnesota, and is known for its commitment to operational excellence and customer-focused solutions.