3M (MMM) AI Stock Analysis

• Market Cap: $89.51B
• Dividend Yield: 1.73%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.99
• 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: 4,187,660
• 30 Day Avg. Volume: 3,123,970
• 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: 1.02
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: 14.33
• 1Y Price Target: $169.25
• Price Target Upside: 1.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $183.00 ▲(9.69% Upside)

3M's overall stock score reflects a mixed outlook. The most significant factor is the company's financial performance, which shows moderate growth but declining profitability and high leverage. Technical analysis indicates positive momentum, supporting the stock price. The earnings call provided a positive sentiment with strong EPS growth and operational improvements, though risks remain. Valuation suggests potential overvaluation, which could limit upside potential.

Positive Factors

New Product Innovation

The significant increase in new product launches enhances 3M's competitive edge and market adaptability, supporting long-term growth and innovation.

Operating Margin Improvement

Improved operating margins reflect effective cost management and productivity gains, contributing to sustainable profitability over the long term.

Commercial Excellence Initiatives

These initiatives enhance pricing discipline and order rates, strengthening 3M's market position and revenue stability.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt financing, which can limit financial flexibility and pose long-term financial risks.

PFAS Litigation Overhang

The litigation presents a persistent financial risk, potentially impacting cash flow and diverting resources from growth initiatives.

Declining Profitability

Decreased margins indicate challenges in maintaining profitability, which could affect long-term financial health and investment capacity.

3M Business Overview & Revenue Model

Company Description

3M (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 Money

3M 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 Financial Statement Overview

Summary

3M's financial performance is under pressure with declining revenues, reduced profitability, and high leverage. The company faces cash flow difficulties, with negative free and operating cash flows, indicating potential financial risks.

Income Statement

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

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

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	24.82B	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	111.00M	638.00M	5.07B	3.84B	5.85B	6.61B
Operating Cash Flow	1.51B	1.82B	6.68B	5.59B	7.45B	8.11B
Investing Cash Flow	1.90B	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
Financing Cash Flow	-6.67B	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 166.83 is above the 20-day moving average (MA) of 158.37, above the 50-day MA of 156.48, and above the 200-day MA of 148.69, indicating a bullish trend. The MACD of 3.50 indicates Negative momentum. The RSI at 63.00 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMM.

3M Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	―	$136.13B	22.59	35.85%	2.11%	7.48%	9.55%
VMI	―	$8.24B	35.92	14.90%	0.63%	1.23%	-22.77%
DHR	―	$153.21B	44.64	6.84%	0.57%	2.22%	-7.60%
EMR	―	$75.71B	28.90	10.86%	1.57%	4.78%	59.68%
ITW	―	$71.33B	23.86	91.71%	2.48%	-0.41%	-10.88%
MMM	―	$89.51B	26.93	73.38%	1.73%	-13.09%	-20.63%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

3M Board Member Gregory R. Page Retires

Gregory R. Page retired from the 3M Company Board of Directors, effective August 11, 2025. His retirement is due to personal and professional commitments, including leadership roles on other public company boards.

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.