MMM GoodMoat Verdict
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3M Company
Exchange: NYSESector: IndustrialsIndustry: Conglomerates
3M Company (3M) is a diversified technology company. The Company operates in six segments: industrial and transportation; healthcare; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M products are sold through a number of distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a range of trades in a number of countries worldwide. In April 2012, it acquired CodeRyte Inc. In September 2012, it acquired the business of Federal Signal Technologies Group (FSTech) from Federal Signal Corporation. On November 28, 2012, the Company acquired Ceradyne, Inc.
Did you know?
Capital expenditures decreased by 27% from FY24 to FY25.
Current Price
$150.50
+0.89%GoodMoat Value
$77.66
48.4% overvaluedProfile
Valuation (TTM)
Market Cap$79.95B
P/E24.60
EV$84.53B
P/B17.00
Shares Out531.23M
P/Sales3.20
Revenue$24.95B
EV/EBITDA15.58
3M Company (MMM) Quality Analysis
GoodMoat Analysis
3M's quality profile is mixed, showing strong profitability metrics but significant financial strain. While its ROE of 69.1% is exceptionally high, this is driven by a heavily leveraged balance sheet, and its low free cash flow yield and high debt are major concerns. The business faces deteriorating competitive positioning and substantial legal liabilities.
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3M's profitability metrics present a contradictory picture. On one hand, its Return on Equity (ROE) of 69.1% far exceeds the framework's high-quality threshold of 15-20%, and its operating margin of 18.6% is solid. However, this elevated ROE is largely a function of its high financial leverage, as indicated by a Debt/Equity ratio of 2.68, which is well above a favourable level. The company's Free Cash Flow (FCF) Yield of 1.9% is low, suggesting weak cash generation relative to its market value and failing to meet the >10-15% FCF margin benchmark. Revenue growth is anemic at 2.0% YoY, indicating a lack of operational momentum. Regarding competitive position (Moat Identification), 3M likely scores low on the framework. While it possesses a strong brand and historical technology leadership, it faces high disruption risk, significant legal overhangs from lawsuits, and evidence of eroding pricing power and market share. Compared to a high-quality industrial, 3M's balance sheet is overburdened, its growth is stagnant, and its cash flow is insufficient relative to its size and obligations, offsetting its superficially high returns on capital.
MMM Profitability
Profitability trend analysis coming soon
MMM Growth
Growth trend analysis coming soon
MMM Financial Health
Financial health indicators coming soon
MMM Quality & Fundamental Analysis
3M Company (MMM) is a Industrials company in the Conglomerates industry, listed on NYSE. This quality analysis page evaluates 3M Company's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
3M Company has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 13.03% and a return on equity (ROE) of 69.12%. Return on assets (ROA) stands at 8.61%.
The debt-to-equity ratio is 2.68, with a current ratio of 1.71. Operating margin is 18.55%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether 3M Company is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.