3M (MMM) Stock Analysis

3M Dividend

3M (MMM) has paid a dividend every year since 1918.

Current Dividend Annualized: $2.92

3M (MMM) Intrinsic Value – Margin of Safety Analysis            

(updated February 2025)

Normalized Diluted Earnings Per Share (TTM): $7.26
Free Cash Flow Per Share (TTM): $1.15
Cash Flow From Operations (CFO) Per Share (TTM): $3.29

Estimated Intrinsic Value: $114

Target Buy Price Based on Required Margin of Safety =  $95
(Required Margin of Safety Based On Risk Stability Grade:

A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)

Target SELL Price Based on Estimated Intrinsic Value = $142
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)

Risk / Stability Grade: B

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

Financial Risk Grade:  B

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

Business Quality Grade:  B

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report: 12/31/24

AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value -(GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None 

Company Description

Sector: Industrials
Industry: Specialty Industrial Machinery

Company Overview:
3M is a global diversified technology company that produces a wide range of products, including adhesives, abrasives, filtration systems, medical devices, and electronics. Known for its innovation, 3M operates across several industries such as healthcare, consumer goods, industrial manufacturing, and safety. The company is recognized for its strong research and development (R&D) capabilities, which drive continuous product innovation.

Company Strengths:
3M benefits from a diverse product portfolio, broad geographic reach, and a long history of innovation, with numerous patents across various industries. The company’s strong R&D pipeline enables it to continually develop new products and maintain competitive advantages in key markets. 3M’s reputation for high-quality products, coupled with its strong brand and global distribution channels, ensures consistent demand and revenue generation.

Company Challenges:
3M faces challenges from slowing global economic growth and fluctuating demand across its industrial and consumer segments. Rising raw material and labor costs, as well as supply chain disruptions, have put pressure on margins. The company is also dealing with legal issues, including ongoing litigation related to its military-grade earplugs, which could affect its reputation and financial performance. Additionally, competition in its core markets is intensifying, requiring continued innovation and operational efficiency.

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.