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3M (MMM)
NYSE:MMM

3M (MMM) AI Stock Analysis

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MM

3M

(NYSE:MMM)

Rating:63Neutral
Price Target:
$153.00
▲(6.23%Upside)
3M's overall stock score reflects a mixed financial situation with strong internal metrics like EBIT margin and ROE, but significant external pressures such as high leverage, declining revenues, and legal challenges. Technical indicators suggest some stability, and valuation metrics show reasonable pricing. However, positive earnings call insights and strategic initiatives provide a balanced outlook.
Positive Factors
Financial Performance
The suspension of China tariffs and lowered tariff rates are expected to benefit consumer margins, positively impacting the company's financial performance.
Legal Settlements
A settlement to resolve all PFAS-related claims with the state of New Jersey is positive and should not be overlooked.
Regulatory Compliance
The EPA's delay in implementing certain PFAS rules gives 3M more time to adapt, reducing immediate regulatory pressure.
Negative Factors
Legal Challenges
Insurance recoveries related to PFAS are complicated by varying legal precedents at the state level, leading to potential delays and legal challenges.
Litigation Risks
Personal injury cases remain outstanding, and those bellwethers will begin to crank up, which could continue to justify an unusual discount.
Regulatory Uncertainty
Uncertainty remains regarding the administration's plans for PFAS, impacting regulatory and compliance expectations.

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

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 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
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 net sales reveal a mixed performance across segments. The Healthcare segment has been phased out, impacting overall sales. While Safety and Industrial and Consumer segments show stability, the Transportation and Electronics segment faces challenges, aligning with earnings call concerns about auto and electronics weakness. Despite these hurdles, 3M's strategic focus on launching new products and improving margins is promising. The company aims to counter tariff impacts with cost offsets and share buybacks, indicating a proactive approach to maintaining shareholder value.
Data provided by:Main Street Data

3M Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 14.78%|
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 shows strong EBIT margin and ROE, but these are offset by high leverage and declining revenues. Cash flow issues further compound these challenges, suggesting financial risks that require management attention.
Income Statement
68
Positive
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.
Balance Sheet
54
Neutral
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.
Cash Flow
45
Neutral
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
24.51B24.57B32.68B34.23B35.35B32.18B
Gross Profit
10.04B10.13B14.20B15.00B16.56B15.58B
EBIT
4.92B4.82B-9.13B6.54B5.45B4.47B
EBITDA
6.60B4.82B-6.75B8.72B9.58B9.26B
Net Income Common Stockholders
4.36B4.17B-7.00B5.78B5.92B5.45B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.02B7.73B5.99B3.89B4.76B5.04B
Total Assets
39.95B39.87B50.58B46.45B47.07B47.34B
Total Debt
14.07B13.66B16.85B16.20B17.63B19.05B
Net Debt
7.74B8.06B10.92B12.54B13.06B14.42B
Total Liabilities
35.43B35.97B45.71B31.68B31.95B34.41B
Stockholders Equity
4.46B3.84B4.81B14.77B15.12B12.93B
Cash FlowFree Cash Flow
-69.00M638.00M5.07B3.84B5.85B6.61B
Operating Cash Flow
973.00M1.82B6.68B5.59B7.45B8.11B
Investing Cash Flow
-1.59B-3.21B-1.21B-1.05B-1.32B-580.00M
Financing Cash Flow
-3.94B1.10B-3.15B-5.35B-6.14B-5.30B

3M Technical Analysis

Technical Analysis Sentiment
Positive
Last Price144.03
Price Trends
50DMA
142.43
Positive
100DMA
144.84
Negative
200DMA
138.03
Positive
Market Momentum
MACD
-0.41
Positive
RSI
47.93
Neutral
STOCH
19.58
Positive
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 144.03 is below the 20-day moving average (MA) of 146.16, above the 50-day MA of 142.43, and above the 200-day MA of 138.03, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VMVMI
80
Outperform
$6.40B18.5422.84%0.85%-0.57%116.12%
HOHON
80
Outperform
$142.55B25.4833.56%2.04%6.30%0.81%
71
Outperform
¥248.80B12.778.50%3.11%6.31%12.96%
MDMDU
68
Neutral
$3.27B12.499.63%3.25%-25.50%-45.13%
GFGFF
66
Neutral
$3.23B14.19110.90%1.05%-3.38%26.22%
MMMMM
63
Neutral
$77.51B18.1994.75%2.03%-24.93%
SESEB
62
Neutral
$2.75B28.032.09%0.32%-0.31%-58.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MMM
3M
144.03
43.13
42.75%
GFF
Griffon
68.59
3.04
4.64%
HON
Honeywell International
221.80
10.36
4.90%
MDU
Mdu Resources Group
15.99
2.17
15.70%
SEB
Seaboard
2,828.67
-274.98
-8.86%
VMI
Valmont
318.63
48.05
17.76%

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
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.