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3M
(NYSE:MMM)
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Rating:57Neutral
Price Target:
$168.00
â–¼(-6.34% Downside)
Action:Reiterated
Date:10/20/26
MMM scores 57 primarily because rising leverage and a diminished equity base materially weaken the financial profile despite solid profitability and positive cash generation. Technical signals are also soft (below key moving averages with negative MACD), which reduces near-term momentum. These are partly offset by a strongly positive earnings call featuring raised EPS guidance, improving margins, and strong order/backlog visibility, though valuation remains somewhat demanding given the P/E and modest dividend yield.
Positive Factors
Diversified Materials Platform
3M’s broad portfolio across industrial, healthcare, transportation, electronics, and consumer end markets reduces reliance on any single customer group. Its materials-science capabilities, manufacturing scale, brands, and distribution network support recurring demand and durable commercial reach.
Negative Factors
Elevated Leverage
The sharp increase in leverage and materially smaller equity base reduces financial flexibility and makes results more sensitive to earnings or cash-flow pressure. Higher indebtedness can constrain capital allocation and increase refinancing and interest-related risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Materials Platform
3M’s broad portfolio across industrial, healthcare, transportation, electronics, and consumer end markets reduces reliance on any single customer group. Its materials-science capabilities, manufacturing scale, brands, and distribution network support recurring demand and durable commercial reach.
Read all positive factors
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:
The Fly
The Fly3M (MMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$88.38B
Dividend Yield1.79%
Average Volume (3M)2.85M
Price to Earnings (P/E)25.4
Beta (1Y)1.05
Revenue Growth2.35%
EPS Growth-21.55%
CountryUS
Employees60,500
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)6.75
Shares Outstanding515,722,400
10 Day Avg. Volume2,644,846
30 Day Avg. Volume2,846,185
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)18.19
Price to Sales (P/S)3.43
P/FCF Ratio61.28
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.85
Enterprise Value/Gross Profit9.74
Enterprise Value/Ebitda16.83
Forecast
1Y Price Target
$186.09Price Target Upside3.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)8.95
Revenue Forecast (FY)$25.45B
3M Business Overview & Revenue Model
Company Description
3M Company operates as a global technology conglomerate with diverse interests. Its extensive operations are strategically divided into four primary business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consume...
How the Company Makes Money
3M primarily makes money by selling manufactured products across its operating segments to business-to-business (B2B) customers, institutions (including government and healthcare providers), and consumers through a mix of direct sales and distribu...
3M Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 26, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported broad-based financial improvement, strong order and backlog trends, raised EPS guidance, sustained productivity gains, and meaningful progress in innovation, data centers, EBO, and space materials. The principal challenges were weakness in consumer electronics, China, auto, and parts of the consumer business, along with oil inflation, tariffs, transformation costs, and ongoing litigation. These lowlights were acknowledged but were generally described as offset by pricing, productivity, backlog, and growth in industrial, safety, semiconductor, aerospace, and data-center markets.Positive Updates
Strong Third-Quarter Financial Performance
3M delivered Q3 organic growth of 3.3%, operating margin of 26.2%—up 110 basis points—adjusted earnings per share of $2.50—up 12%—and free cash flow of $1.2 billion. The company returned $600 million to shareholders, including $400 million in dividends and $200 million in share repurchases.
Negative Updates
Consumer Electronics Decline
Consumer electronics revenue declined mid-teens in Q3 and is expected to decline mid-teens again in the fourth quarter. Weakness was concentrated in LCD displays and China OEMs, although management said performance with premium device manufacturers was in line with or slightly better than the market.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
3M delivered Q3 organic growth of 3.3%, operating margin of 26.2%—up 110 basis points—adjusted earnings per share of $2.50—up 12%—and free cash flow of $1.2 billion. The company returned $600 million to shareholders, including $400 million in dividends and $200 million in share repurchases.
Read all positive updates
Company Guidance
For 2026, 3M expects organic growth of greater than 3.5% for the full year and just over 4% in the fourth quarter, adjusted EPS of $9.10-$9.15, or growth between 11% and 12%, margin of about 24.6% on the new basis, free cash flow of approximately $4.8 billion, and an adjusted tax rate at about 20%; oil inflation is estimated at $185 million and is expected to be fully offset through pricing, while fourth-quarter EBO revenue is expected to be in the $40 million range, plus or minus, with next year likely to double and potentially reach $80 million, $100 million. For 2027, 3M expects good growth in line with its second half exit rate, margin rates exceeding its Investor Day target of 25.4% on the new basis, volume incrementals closer to the 40% level within the historical 30%-40% range, and robust free cash flow driven by earnings growth and working capital improvements.3M Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
38
Negative
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.25B | 24.95B | 24.57B | 24.61B | 34.23B | 35.35B |
| Gross Profit | 9.98B | 9.87B | 10.08B | 9.57B | 14.97B | 16.61B |
| EBITDA | 5.78B | 6.28B | 7.22B | -8.91B | 8.72B | 9.58B |
| Net Income | 3.54B | 3.25B | 4.17B | -7.00B | 5.78B | 5.92B |
Balance Sheet | ||||||
| Total Assets | 39.53B | 37.73B | 39.87B | 50.58B | 46.45B | 47.07B |
| Cash, Cash Equivalents and Short-Term Investments | 5.14B | 5.93B | 7.73B | 5.79B | 3.89B | 4.76B |
| Total Debt | 15.00B | 12.94B | 13.66B | 16.75B | 16.86B | 18.31B |
| Total Liabilities | 34.39B | 32.99B | 35.97B | 45.71B | 31.68B | 31.95B |
| Stockholders Equity | 4.17B | 4.70B | 3.84B | 4.81B | 14.72B | 15.05B |
Cash Flow | ||||||
| Free Cash Flow | 2.68B | 1.40B | 638.00M | 5.07B | 3.84B | 5.85B |
| Operating Cash Flow | 3.63B | 2.31B | 1.82B | 6.68B | 5.59B | 7.45B |
| Investing Cash Flow | -2.92B | 1.35B | -3.21B | -1.21B | -1.05B | -1.32B |
| Financing Cash Flow | 1.47B | -4.02B | 1.10B | -3.15B | -5.35B | -6.14B |
3M Technical Analysis
Positive
179.37
Price Trends
169.51
Positive
166.47
Positive
159.74
Positive
Market Momentum
-0.73
Negative
59.92
Neutral
61.33
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 179.37 is above the 20-day moving average (MA) of 164.92, above the 50-day MA of 169.51, and above the 200-day MA of 159.74, indicating a bullish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 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 16 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $269.85M | 17.43 | 37.92% | 16.21% | 11.24% | 31.12% | |
69 Neutral | $66.55B | 8.28 | 45.58% | 2.08% | -2.41% | 53.63% | |
69 Neutral | $8.73B | 16.94 | 29.84% | 0.66% | 4.55% | 131.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $346.85M | -3.66 | -27.83% | 4.15% | 5.09% | 14.61% | |
57 Neutral | $88.38B | 25.39 | 77.12% | 1.79% | 2.35% | -21.55% | |
45 Neutral | $589.93M | -20.88 | -5.81% | 5.25% | -31.82% | 55.14% |
* Industrials Sector Average
MMM
3M
171.37
7.75
4.74%
HON
Honeywell International
213.32
10.80
5.33%
MATW
Matthews International
19.42
-3.03
-13.49%
NNBR
NN
3.55
1.73
95.05%
RCMT
Rcm Technologies
39.05
15.73
67.45%
VMI
Valmont
450.68
38.85
9.43%
3M Corporate Events
Business Operations and StrategyPrivate Placements and Financing
3M Deepens Amazon Data Center Partnership With Warrant
Positive
Oct 19, 2026
On October 19, 2026, 3M expanded its strategic commercial relationship with a wholly owned subsidiary of Amazon.com, Inc., reinforcing its role as a key provider of optical connectivity and data center products. Under the agreement, 3M issued a wa...
Business Operations and StrategyPrivate Placements and Financing
3M Boosts Financial Flexibility With Euro Debt Offering
Positive
Sep 10, 2026
On September 3, 2026, 3M entered into an underwriting agreement with a syndicate of international banks to issue €1.5 billion in euro-denominated notes, split equally among tranches maturing in 2028, 2031, and 2034 with coupons ranging from ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
3M Updates Credit Facility and Corporate Financing Structure
Neutral
Aug 19, 2026
On August 19, 2026, 3M Company reported that it had entered into a material definitive agreement establishing a new credit facility, marking a change in its corporate financing arrangements. As part of this move, the company also terminated its fo...
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.