3M (MMM) AI Stock Analysis

• Market Cap: $77.51B
• Dividend Yield: 2.03%
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.01
• Revenue Growth: -24.93%
• EPS Growth: N/A
• Country: US
• Employees: 61,500
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 1.88
• Shares Outstanding: 538,181,340
• 10 Day Avg. Volume: 2,787,109
• 30 Day Avg. Volume: 2,964,294
• PEG Ratio: 3.58
• Price to Book (P/B): 17.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.12K
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $152.00
• Price Target Upside: 5.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• 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 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 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.51B	24.57B	32.68B	34.23B	35.35B	32.18B
	Gross Profit
10.04B	10.13B	14.20B	15.00B	16.56B	15.58B
	EBIT
4.92B	4.82B	-9.13B	6.54B	5.45B	4.47B
	EBITDA
6.60B	4.82B	-6.75B	8.72B	9.58B	9.26B
	Net Income Common Stockholders
4.36B	4.17B	-7.00B	5.78B	5.92B	5.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.02B	7.73B	5.99B	3.89B	4.76B	5.04B
	Total Assets
39.95B	39.87B	50.58B	46.45B	47.07B	47.34B
	Total Debt
14.07B	13.66B	16.85B	16.20B	17.63B	19.05B
	Net Debt
7.74B	8.06B	10.92B	12.54B	13.06B	14.42B
	Total Liabilities
35.43B	35.97B	45.71B	31.68B	31.95B	34.41B
	Stockholders Equity
4.46B	3.84B	4.81B	14.77B	15.12B	12.93B
Cash Flow		Free Cash Flow
-69.00M	638.00M	5.07B	3.84B	5.85B	6.61B
	Operating Cash Flow
973.00M	1.82B	6.68B	5.59B	7.45B	8.11B
	Investing Cash Flow
-1.59B	-3.21B	-1.21B	-1.05B	-1.32B	-580.00M
	Financing Cash Flow
-3.94B	1.10B	-3.15B	-5.35B	-6.14B	-5.30B

3M Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.03
• 50DMA: Positive
• 100DMA: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	80 Outperform	$6.40B	18.54	22.84%	0.85%	-0.57%	116.12%
HON	80 Outperform	$142.55B	25.48	33.56%	2.04%	6.30%	0.81%
Sector *	71 Outperform	¥248.80B	12.77	8.50%	3.11%	6.31%	12.96%
MDU	68 Neutral	$3.27B	12.49	9.63%	3.25%	-25.50%	-45.13%
GFF	66 Neutral	$3.23B	14.19	110.90%	1.05%	-3.38%	26.22%
MMM	63 Neutral	$77.51B	18.19	94.75%	2.03%	-24.93%	―
SEB	62 Neutral	$2.75B	28.03	2.09%	0.32%	-0.31%	-58.07%

3M Corporate Events

3M Shareholders Elect Board, Ratify PwC Appointment

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.

3M Reaches Judicial Consent Order on PFAS Case

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.