3M CO (MMM) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 16.3%. FCF margin 8.2%. D/E 3.8x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	16.3%	Solid returns
FCF Margin	8.2%	Healthy cash flow
Debt/Equity	3.8x	Elevated debt

ROIC 16.3% — Top 25% of sector peers. FCF margin 8.2% — Top 25%.

Explore 3M CO: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MMM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: 3M CO earns 16.3% ROIC, Top 25% in Healthcare

ROIC TTM 16.3%, sector median -2.5%, Top 25%. DuPont: NOPAT margin 14.2% × asset turnover 0.7x. Gross margin 39.7%. Operating margin 19.1%. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Return on Invested Capital (ROIC)	16.3%	Good	Above sector median of -2.5%
Return on Equity (ROE)	63.8%	Excellent	Efficient use of shareholder equity
Gross Margin	39.7%	Good	Competitive pricing environment
Operating Margin	19.1%	Good	Efficient operations

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Cash Flow: 3M CO generates $2.1B FCF at 8.2% margin, positive NaN/8 quarters

FCF TTM $2.1B. FCF margin 8.2%, Top 25%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Free Cash Flow Margin	8.2%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$2.1B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: 3M CO at 3.8x leverage

Debt/Equity 3.8x. Total debt $12.6B, cash & investments $3.7B. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Debt to Equity	3.8x	Red flag	Elevated leverage
Net Cash Position	$-8.8B	Warning	Net debt position

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Valuation: 3M CO trades at 27.8x earnings

P/E 27.8x. EV/Sales 3.4x. FCF yield 2.7%. Dividend yield 2.0%. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
P/E Ratio	27.8x	Adequate	Premium valuation
EV/Sales	3.4x	Good	Growth premium priced in
FCF Yield	2.7%	Adequate	Lower cash yield
Dividend Yield	2.0%	Adequate	Growth focus over income

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Capital Allocation: 3M CO returns 7.2% shareholder yield

Total shareholder yield 7.2% (div 2.0% + buyback 5.1%). Capital returned $5.6B TTM. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Total Shareholder Yield	7.2%	Excellent	Dividend + buyback yield combined
Buyback Yield	5.1%	Good	Active share repurchases
Total Capital Returned (TTM)	$5.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	16.3%	Top 25%	-
Free Cash Flow Margin	8.2%	Top 25%	-
Gross Margin	39.7%	Bottom 25%	0.6x below
Operating Margin	19.1%	Top 25%	8.3x above
Return on Equity (ROE)	63.8%	Top 10%	-
P/E Ratio	27.8x	N/A	-

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Financial Scorecard

Metric	MMM	Rating	Sector Context
Return on Invested Capital (ROIC)	16.3%	Good	Top 25% of sector (median: -2.5%)
Free Cash Flow Margin	8.2%	Adequate	Top 25% of sector (median: 0.0%)
Gross Margin	39.7%	Good	Bottom 25% of sector (median: 64.7%)
Debt to Equity Ratio	384.8%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	27.8x	Adequate	Growth premium
Free Cash Flow Yield	2.7%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is 3M CO's Return on Invested Capital (ROIC)?

3M CO (MMM) has a trailing twelve-month Return on Invested Capital (ROIC) of 16.3%. Sector median -2.5%. Source: 10-Q filed 2025-10-21.

Q: What is 3M CO's Free Cash Flow Margin?

3M CO (MMM) has a free cash flow margin of 8.2%, generating $2.1 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-21.

Q: What is 3M CO's P/E ratio and how does it compare to peers?

3M CO (MMM) trades at a P/E ratio of 27.8x, which is above the sector median of N/A. EV/Sales 3.4x. FCF yield 2.7%. Source: 10-Q filed 2025-10-21.

Q: Does 3M CO pay a dividend?

3M CO (MMM) currently pays a dividend yield of 2.0%. Total shareholder yield (dividend + buybacks) 7.2%. Source: 10-Q filed 2025-10-21.

Q: How much debt does 3M CO have?

3M CO (MMM) has a debt-to-equity ratio of 3.8x with total debt of $12.6 billion. Net debt $8.8 billion. Source: 10-Q filed 2025-10-21.

Q: What is 3M CO's revenue and earnings growth?

3M CO (MMM) grew revenue by 2.1% year-over-year. EPS -34.5% YoY. Source: 10-Q filed 2025-10-21.

Q: Is 3M CO buying back stock?

3M CO (MMM) repurchased $4.0 billion of stock over the trailing twelve months. This represents a buyback yield of 5.1%. Source: 10-Q filed 2025-10-21.

Q: How does 3M CO compare to competitors in Healthcare?

Compared to other companies in Healthcare, 3M CO (MMM) shows: ROIC 16.3%, sector median -2.5% (Top 25%). FCF margin 8.2%, sector median 0.0% (Top 25%). Gross margin 39.7%, 25.0pp below sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with 3M CO?

Quantitative warning flags for 3M CO (MMM): 1) ROIC declining -2.0% over 8 quarters; 2) debt/equity 3.8x (above 1.5x threshold). Source: 10-Q filed 2025-10-21.

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Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.