# 3M Company (MMM) — Stock CV

3M Company is a $82.6B healthcare company. Revenue grew 2.3% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~1.2 years of free cash flow. It trades at 27.5× earnings — in the most expensive third of its own history.

> 3M, a multinational conglomerate founded in 1902, sells tens of thousands of products ranging from sponges to respirators. The firm is well known for its extensive research and development capabilities, and it is a pioneer in inventing new use cases for its proprietary technologies.

## Identity

- **Ticker**: MMM
- **Sector**: Healthcare
- **Industry**: Surgical & Medical Instruments & Apparatus
- **Headquarters**: ST PAUL, MN
- **Employees**: 60 500
- **Website**: https://www.3m.com
- **Market cap**: $82.6B
- **Last price**: $160.20
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $25.2B
- **Net income**: $3.00B
- **Free cash flow**: $3.98B
- **Net debt**: $4.67B
- **P/E**: 27.5
- **Revenue growth (YoY)**: 2.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 44 |
| Growth | 25 |
| Profitability | 90 |
| Health | 49 |
| Quality | 66 |
| Moat | 65 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +2.3% YoY
- [x] Profitable — $3.00B TTM
- [ ] Profit growing — -16.1% YoY
- [x] Generates cash — $3.98B TTM
- [x] Debt under control — ~1.2y of cash flow to repay
- [x] Established company — $82.6B market cap
- [x] Not printing shares — -7.0% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — health score 37/100
- [x] Pays a dividend — yield 1.93%
- [x] Valuation not extreme — P/E 27.5

## Experience (career milestones)

- **FY2021** — Best year on record: $5.92B net income
- **2019** — 3M purchased Acelity and its KCI subsidiaries for $6.7 billion, including assumption of debt and…
- **Dec 19, 2018** — 3M announced it had entered into a definitive agreement to acquire the technology business of…
- **2017** — 3M purchased Johnson Controls International Plc's safety gear business, Scott Safety, for $2 billion
- **FY2016** — First recorded profitable year: $5.05B net income
- **FY2016** — Revenue already above $10B: $30.1B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2011** — 3M created CloudLibrary as part of its library systems unit as a competitor to OverDrive, Inc
- **1979** — 3M introduced a digital audio recording system called "3M Digital Audio Mastering System"
- **1977** — 3M launched "Press 'n Peel", a sticky bookmark page holder in stores in four cities in 1977, but the results were…
- **1951** — DuPont purchased PFOA from then-Minnesota Mining and Manufacturing Company for use in the manufacturing of…
- **1924** — 3M obtained its first patent in 1924 and acquires approximately 3,000 new patents annually
- **1916** — 3M finally became financially stable in 1916 and was able to pay dividends
- **1905** — Co-founder John Dwan solicited funds in exchange for stock and Edgar Ober and Lucius Ordway took over the company in…

## Strengths

- Strong cash conversion — FCF is 15.8% of revenue
- Interest covered 14.5× by operating earnings
- High returns on invested capital (ROIC 34.7%)

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $35.4B | $5.92B | $5.85B |
| FY2022 | $34.2B | $5.78B | $3.84B |
| FY2023 | $32.7B | -$7.00B | $5.07B |
| FY2024 | $24.6B | $4.17B | $638M |
| FY2025 | $24.9B | $3.25B | $1.40B |

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Source: https://stockcv.com/MMM — derived from company filings; may be delayed or incomplete. Information, not investment advice.