3M CO (MMM) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 16.9%. FCF margin 15.8%. D/E 4.3x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	16.9%	Solid returns
FCF Margin	15.8%	Strong cash generation
Debt/Equity	4.3x	Elevated debt

ROIC 16.9% — Top 25% of sector peers. FCF margin 15.8% — Top 5%.

Explore 3M CO: Earnings History | Filings

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.

---

Profitability: 3M CO earns 16.9% ROIC, Top 25% in Healthcare

ROIC TTM 16.9%, sector median -5.8%, Top 25%. DuPont: NOPAT margin 14.1% × asset turnover 0.7x. Gross margin 39.4%. Operating margin 18.4%. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Return on Invested Capital (ROIC)	16.9%	Good	Above sector median of -5.8%
Return on Equity (ROE)	73.9%	Excellent	Efficient use of shareholder equity
Gross Margin	39.4%	Good	Competitive pricing environment
Operating Margin	18.4%	Good	Efficient operations

---

Cash Flow: 3M CO generates $4.0B FCF at 15.8% margin, positive NaN/8 quarters

FCF TTM $4.0B. FCF margin 15.8%, Top 5%. OCF/Net income 1.6x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Free Cash Flow Margin	15.8%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$4.0B	Good	Positive cash generation
OCF/Net Income	1.6x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: 3M CO at 4.3x leverage

Debt/Equity 4.3x. Total debt $12.6B, cash & investments $3.0B. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Debt to Equity	4.3x	Red flag	Elevated leverage
Net Cash Position	$-9.6B	Warning	Net debt position

---

Valuation: 3M CO trades at 28.5x earnings

P/E 28.5x. EV/Sales 3.6x. FCF yield 4.7%. Dividend yield 1.9%. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
P/E Ratio	28.5x	Adequate	Premium valuation
EV/Sales	3.6x	Good	Growth premium priced in
FCF Yield	4.7%	Good	Lower cash yield
Dividend Yield	1.9%	Adequate	Growth focus over income

---

Capital Allocation: 3M CO returns 6.6% shareholder yield

Total shareholder yield 6.6% (div 1.9% + buyback 4.7%). Capital returned $5.6B TTM. Source: 10-Q filed 2025-10-21.

Metric	MMM	Rating	Context
Total Shareholder Yield	6.6%	Excellent	Dividend + buyback yield combined
Buyback Yield	4.7%	Good	Active share repurchases
Total Capital Returned (TTM)	$5.6B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	16.9%	Top 25%	-
Free Cash Flow Margin	15.8%	Top 5%	-
Gross Margin	39.4%	Bottom 25%	0.6x below
Operating Margin	18.4%	Top 25%	10.1x above
Return on Equity (ROE)	73.9%	Top 5%	-
P/E Ratio	28.5x	N/A	-

---

Financial Scorecard

Metric	MMM	Rating	Sector Context
Return on Invested Capital (ROIC)	16.9%	Good	Top 25% of sector (median: -5.8%)
Free Cash Flow Margin	15.8%	Good	Top 5% of sector (median: 0.0%)
Gross Margin	39.4%	Good	Bottom 25% of sector (median: 64.9%)
Debt to Equity Ratio	425.2%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	28.5x	Adequate	Growth premium
Free Cash Flow Yield	4.7%	Adequate	Moderate yield

---

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 16.9%. Sector median -5.8%. 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 15.8%, generating $4.0 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 28.5x, which is above the sector median of N/A. EV/Sales 3.6x. FCF yield 4.7%. Source: 10-Q filed 2025-10-21.

Q: Does 3M CO pay a dividend?

3M CO (MMM) currently pays a dividend yield of 1.9%. Total shareholder yield (dividend + buybacks) 6.6%. 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 4.3x with total debt of $12.6 billion. Net debt $9.6 billion. Source: 10-Q filed 2025-10-21.

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

3M CO (MMM) grew revenue by 2.3% year-over-year. EPS -21.8% 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 4.7%. 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 16.9%, sector median -5.8% (Top 25%). FCF margin 15.8%, sector median 0.0% (Top 5%). Gross margin 39.4%, 25.5pp 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 -3.8% over 8 quarters; 2) debt/equity 4.3x (above 1.5x threshold). Source: 10-Q filed 2025-10-21.

---

Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q2 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.