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3M (MMM)
NYSE:MMM
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3M
(NYSE:MMM)
61Neutral
Positive Factors
Earnings
1Q25 results came in ahead of expectations on EPS and operations.
Growth Initiatives
3M has outlined growth initiatives including R&D efficiency and improving customer churn through predictive analytics and service improvements.
Operational Efficiency
Operating equipment efficiency (OEE) was up 4 pts sequentially.
Negative Factors
Litigation Risks
Lawsuits in New Jersey and Vermont are considered more headline risk than material financial risk.
Macroeconomic Challenges
3M fell far short of these goals due to weak macro, execution missteps, and the distraction of litigation.
Tariffs
3M noted that the total annualized tariff impacts before any offsets is $850mn.
3M (MMM) vs. S&P 500 (SPY)
Market Cap
$76.46B
Dividend Yield1.99%
Average Volume (3M)4.37M
Price to Earnings (P/E)17.9
Beta (1Y)1.02
Revenue Growth-24.93%
EPS GrowthN/A
CountryUS
Employees61,500
SectorIndustrials
Sector Strength78
IndustryConglomerates
Share Statistics
EPS (TTM)7.92
Shares Outstanding538,181,340
10 Day Avg. Volume3,830,257
30 Day Avg. Volume4,368,684
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.14
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.64
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$147.30Price Target Upside3.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
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 diverse revenue model that encompasses several key segments. The Industrial segment is a significant contributor, providing products like tapes, abrasives, adhesives, and filtration solutions to various industries. The Safety and Graphics segment generates revenue from personal protective equipment, security products, and commercial graphics. The Health Care segment offers medical and surgical supplies, oral care solutions, and drug delivery systems. The Electronics and Energy segment provides materials for electronics manufacturing and energy solutions. The Consumer segment includes household products, office supplies, and stationery, such as the well-known Post-it and Scotch brands. 3M's earnings are supported by strategic partnerships and a strong global presence, allowing it to leverage its broad product portfolio and innovation to meet customer needs across diverse markets.
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:
Main Street Data
Main Street Data3M Financial Statement Overview
Summary
3M shows strong EBIT margin and ROE, but faces challenges with high leverage, declining revenues, and negative cash flow growth. These mixed results highlight financial risks that need careful management.Income Statement
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.68
Positive
Balance Sheet
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.54
Neutral
Cash Flow
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 24.57B | 32.68B | 34.23B | 35.35B | 32.18B | Gross Profit |
| 10.13B | 14.20B | 15.00B | 16.56B | 15.58B | EBIT |
| 4.82B | -9.13B | 6.54B | 5.45B | 4.47B | EBITDA |
| 4.82B | -6.75B | 8.72B | 9.58B | 9.26B | Net Income Common Stockholders |
| 4.17B | -7.00B | 5.78B | 5.92B | 5.45B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.73B | 5.99B | 3.89B | 4.76B | 5.04B | Total Assets |
| 39.87B | 50.58B | 46.45B | 47.07B | 47.34B | Total Debt |
| 13.66B | 16.85B | 16.20B | 17.63B | 19.05B | Net Debt |
| 8.06B | 10.92B | 12.54B | 13.06B | 14.42B | Total Liabilities |
| 35.97B | 45.71B | 31.68B | 31.95B | 34.41B | Stockholders Equity |
| 3.84B | 4.81B | 14.77B | 15.12B | 12.93B |
| Cash Flow | Free Cash Flow | |||
| 638.00M | 5.07B | 3.84B | 5.85B | 6.61B | Operating Cash Flow |
| 1.82B | 6.68B | 5.59B | 7.45B | 8.11B | Investing Cash Flow |
| -3.21B | -1.21B | -1.05B | -1.32B | -580.00M | Financing Cash Flow |
| 1.10B | -3.15B | -5.35B | -6.14B | -5.30B |
3M Technical Analysis
Positive
142.08
Price Trends
143.15
Negative
141.13
Positive
134.40
Positive
Market Momentum
-0.93
Negative
54.82
Neutral
83.21
Negative
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 142.08 is above the 20-day moving average (MA) of 134.58, below the 50-day MA of 143.15, and above the 200-day MA of 134.40, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 83.21 is Negative, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $137.62B | 24.60 | 33.56% | 2.06% | 6.30% | 0.81% | |
75 Outperform | $5.69B | 16.51 | 22.84% | 0.83% | -0.57% | 116.12% | |
70 Outperform | $3.38B | 14.48 | 93.05% | 0.95% | -2.47% | 249.49% | |
68 Neutral | $3.58B | 12.75 | 10.51% | 2.97% | -22.50% | -32.26% | |
64 Neutral | $4.28B | 11.80 | 5.30% | 250.74% | 4.12% | -9.02% | |
61 Neutral | $76.46B | 17.95 | 94.75% | 1.99% | -24.93% | ― | |
55 Neutral | $2.52B | 25.68 | 2.09% | 0.35% | -0.31% | -58.07% |
* Industrials Sector Average
Performance Comparison
MMM
3M
142.08
47.64
50.44%
GFF
Griffon
71.07
1.90
2.75%
HON
Honeywell International
214.13
23.18
12.14%
MDU
Mdu Resources Group
17.52
3.78
27.51%
SEB
Seaboard
2,592.10
-589.01
-18.52%
VMI
Valmont
307.43
61.80
25.16%
3M Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 12.68%|
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 Corporate Events
Business Operations and StrategyFinancial Disclosures
3M Unveils Strategic Plan at 2025 Investor Day
Positive
Feb 26, 2025
On February 26, 2025, 3M Company held its 2025 Investor Day in St. Paul, Minnesota, where it provided a strategic update and medium-term financial outlook. The company highlighted its plans to accelerate sales growth through innovation and operational excellence, aiming for an operating margin of approximately 25% by 2027 and high-single-digit EPS growth annually. 3M also outlined a capital deployment framework, focusing on investing in the business and returning at least $10 billion in cash to shareholders. These initiatives are expected to enhance 3M’s market positioning and deliver sustainable value to its stakeholders.
Executive/Board ChangesBusiness Operations and Strategy
3M Announces New Leadership Changes for March 2025
Positive
Feb 10, 2025
3M announced changes to its Board of Directors effective March 1, 2025, with the retirement of Michael F. Roman as Executive Chairman and the appointment of William M. Brown as the new Chairman. Additionally, David P. Bozeman was elected to the Board, bringing valuable experience in supply chains, manufacturing, and digital transformation, while Amy E. Hood decided not to stand for re-election. These changes signify a strategic move for 3M as it focuses on growth and operational excellence, with the new leadership expected to strengthen its market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.