3M (MMM)
Industrials · $96.8B market cap · SEC CIK 0000066740
ahead of 11% of the S&P 500 · #72 of 79 in Industrials
Next reports on Jan 18, 2027, after the close, with analysts expecting $2.05 in earnings per share.
52-week range $139.34 to $196.90. 4% below its 52-week high and 36% above its low.
The case for MMM
- Earns 94% on shareholder equity, a figure flattered by a small equity base.
The case against
- Expensive for its growth: 27.4× earnings, where 0% a year of growth would justify about 8×.
- Heavily leveraged. Debt is 3.6× equity.
- Revenue has shrunk 5.0% a year over five years.
- Priced at 21× book value. Very little hard asset backing here.
- Only 43% of FY2025's $3.3B profit arrived as free cash.
- Free cash flow is only 1.4% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 6 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 15 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 54 |
| Momentumhow the price has behaved lately | 70 |
| Stabilityhow violently it moves, what it owes and what it pays you | 59 |
- Its dividend figures disagree with each other (a 6.3% yield against about 1.7% implied by its payout ratio and P/E), so the dividend is not counted.
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +1.7% |
|---|---|
| Over 5 years | −5.0% a year |
| FY2025 revenue | $24.9B (+2%) |
Free cash flow
Is it generating real cash? Less than its profits suggest
| FY2025 free cash flow | $1.4B |
|---|---|
| Of revenue | 6% |
| Of profit | 43% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 40% |
|---|---|
| Operating margin | 19% |
| Net margin, FY24 → FY25 → now | 17.0% → 13.0% → 14.0% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $5.2B |
|---|---|
| Long-term debt | $10.9B |
| Net debt | $5.7B |
| Years to repay | 4.7 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 27.4× |
|---|---|
| Fair P/E for its growth | 8× |
| P/FCF | 69.3× |
| Forward P/E | 17.8× |
| EV / EBITDA | 17.4× |
At 27.4× earnings it trades well above the 8× that 0% a year of growth would justify. At 69.3× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from 3M's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $24.9B | $24.6B | $24.6B | $26.2B | $35.4B |
| Change on the year | +2% | 0% | −6% | −26% | — |
| Free cash flow | |||||
| Free cash flow | $1.4B | $638M | $5.1B | $3.8B | $5.9B |
| Of revenue | 6% | 3% | 21% | 15% | 17% |
| Profit margins | |||||
| Operating margin | 18.6% | 19.6% | −43.4% | 16.7% | 20.8% |
| Net margin | 13.0% | 17.0% | −28.4% | 22.1% | 16.7% |
| Debt vs. cash | |||||
| Cash | $5.2B | $5.6B | $5.9B | $3.7B | $4.6B |
| Long-term debt | $10.9B | $11.1B | $13.1B | $14.0B | $16.1B |
| Net cash (debt) | −$5.7B | −$5.5B | −$7.2B | −$10.3B | −$11.5B |
What 3M says it does
3M Company was incorporated in 1929 under the laws of the State of Delaware to continue operations begun in 1902. The Company’s ticker symbol is MMM. As used herein, the term “3M” or “Company” includes 3M Company and its subsidiaries unless the context indicates otherwise. In this document, for any references to Note 1 through Note 20, refer to the Notes to Consolidated Financial Statements in Item 8. Available Information : The Securities and Exchange Commission (SEC) maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public can obtain any documents that the Company files with the SEC at https://www.sec.gov. The Company files annual reports, quarterly reports, proxy statements and other documents with the SEC under the Securities Exchange Act of 1934 (Exchange Act). 3M also makes available free of charge…
Risk factors MMM lists in its 10-K
- * The Company’s results are impacted by the effects of, and changes in, worldwide economic, political, regulatory, international trade, geopolitical, tariffs and retaliatory counter measures, and other external conditions
- * Foreign currency exchange rates and fluctuations in those rates may affect the Company’s ability to realize projected growth rates in its sales and earnings
- * The Company faces liabilities related to certain fluorochemicals, which could have a material adverse effect on our results
- * The Company’s results are affected by competitive conditions and customer preferences
- *The Company’s use of artificial intelligence technologies exposes the Company to risks which could have a material adverse effect on the Company’s business, reputation and results of operations
- * Acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies could affect future results
- * The Company’s future results may be affected by its operational execution, including through organizational restructurings and scenarios where the Company generates fewer productivity improvements than planned
- * The Company's defined benefit pension and postretirement plans are subject to financial market risks that could have a material adverse effect on our results
- * Change in the Company’s credit ratings or increases in benchmark interest rates could increase cost of funding
- * Changes in tax rates, laws, or regulations could adversely impact our financial results
- * The Company is subject to risks related to the Company's Aearo Entities and CAE Settlement
- * The Company is subject to risks related to the separation of Solventum, the Company's former Health Care business, into an independent public company