MMM 3M Company - Fundamental Analysis
NEUTRAL
MMM Stock | Fundamental Analysis & Investment Insights
NYSE
•
Industrials
•
Conglomerates
Current Price
$167.58
Analyst Target
$174.94
+4.4% Upside
52W High
$172.85
52W Low
$121.98
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
3M Company trades near its 52-week high with strong price momentum over the past year (+29.7%) and solid long-term returns (3Y: +72.8%, 5Y: +39.8%), supported by robust gross margins (40.98%) and an analyst consensus rating of 'buy'. However, earnings have declined sharply YoY (-37.5%) and Q/Q (-39.2%), with zero earnings beats in the last four quarters, raising concerns about execution. Valuation appears stretched relative to growth, with a P/E of 26.73 exceeding the sector average of 26.79 despite subpar revenue growth (3.5% vs. peer avg 7.18%). Insider selling worth $7M over the past six months adds caution, even as the dividend remains well-covered with a 1.74% yield and 46% payout ratio.
Key Strengths
Gross margin of 40.98% significantly exceeds sector average of 9.41%, reflecting pricing power and cost discipline
Operating margin of 24.37% is among the highest in the industrials conglomerate peer group
ROE of 72.92% is exceptionally high, driven by financial engineering and leverage (Debt/Equity: 2.82)
Dividend payout ratio of 46.09% is sustainable given current earnings and cash flow profile
Analyst target price of $174.94 implies 4.4% upside, with unanimous buy rating from 16 analysts
Key Risks
Earnings declining sharply YoY (-37.5%) and Q/Q (-39.2%), indicating deteriorating profitability
Revenue growth of 3.5% lags peer average of 7.18%, with no recent earnings surprises to catalyze re-rating
Valuation rich at P/E 26.73 vs. forward P/E of 21.21, suggesting limited near-term multiple expansion
Insider selling activity totaling $7M over last 6 months signals lack of confidence from executives
Debt/Equity ratio of 2.82 is above peer average of 1.76, increasing financial risk in a higher-for-longer rate environment
AI Fair Value Estimate
Based on comprehensive analysis
$170.5
+1.7% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare MMM against industry averages and similar companies
Insider Trading & Analyst Ratings
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