3 m today
- 52 week range
- $75.40
▼
$152.08
- Dividend yield
- 1.87%
- P/E ratio.
- 19.82
- VALUE VALUE
- $148.87
3M NYSE: mmm faced many difficulties, but overcame them and began a new era of growth. Well-being, including several legal issues, are in the rearview mirror, and the road ahead is clearer. This path includes renewed growth, improved cash flow, a stronger balance sheet and a robust return of capital. The stock is already up 100% due to the changing market tide; Signals in January suggest this uptrend has some room to run and could push another $75 to set a new record, a move that could come quickly.
Among the critical details is the company’s return of capital. Given the legal challenges, the capital outlook is not weakened and the outlook is robust. The company projects free cash flow growth in 2025 and approximately 100% free cash flow conversion. Free cash flow in 2024 has allowed it to maintain its dividend, yielding about 2% ahead of its Q4 release and share buybacks, which are significant. The company reduced the account by just 0.27% for the year, but by 1.6% in Q4, which marks the peak of activity, leading to a steady decline in share buybacks in 2025 and beyond.
The basic balance points are good. The balance sheet reflects the impact of divestitures and acquisitions but is healthy, leaving the company in a strong position to execute on its strategy. The company is well capitalized with low leverage. The cash balance fell slightly to $5.7 billion. USA, but is offset by a significant increase in short-term investment, which puts it into effect. Current and total assets and liabilities are reduced, leaving equity down, but offset by lower share numbers and growth prospects.
2025 guidance is adjusted for organic growth of 2% to 3%, which is better than analysts are forecasting and bolstered by solid earnings guidance. The midpoint of management’s range is consistent with the reported Marketbeat consensus, an encouraging figure that will likely be considered cautious in hindsight.
3m shares advance 5% after mixed results
Stock forecast for 3m today
$148.87
-0.52% disadvantageModerate purchase
Based on 16 analyst ratings
| High forecast | $184.00 |
|---|---|
| Average forecast | $148.87 |
| Low forecast | $96.00 |
3M Stock Forecast Details
The Q4 results were mixed in terms of what analysts were forecasting, but there were so many factors at play that a slight miss from the top line is easy to ignore. The company’s net revenue of $5.58 billion. US was down 24.6% due to the waiver, but issued only 85 basis points, with Q4 total sales up 0.1% and organic revenue up 2.1%. More importantly, margins remained strong, with GAAP results improving by about 300 bps and the adjusted margin relatively flat. Adjusted margins are down only 0.2%, which is delivering better results, and revenues from an adjusted $1.68 are expected to only be down 2% in 2025, compared with a contraction of nearly 25% and 0 $.14 ahead of forecasts.
3M’s results should support bullish analyst trends into 2025. These include increased reach, improved sentiment and increased price target. Coverage has increased 60% since the 2023 low, while sentiment has improved from contract to moderate buy. The pre-report statement included a slight cut in the price target, but to above-consensus levels of 35% from January 2024 to January 2025. The consensus target of mid-January 2025 suggests a fair value for this industrial stock of $140; The high range implies 35% growth in 2025.
3M is in a strong uptrend, floating higher on improved results, prospects and return on capital
3M’s price action is about as strong as it gets, showing bullish conditions on the daily, weekly and monthly charts that confirm the market move. The price action leading into the 4th quarter results is a bullish flag pattern, confirmed by early market action following it. Assuming the market maintains upward momentum, it could rise an amount equal to its flag pole from the breakout point, which is approximately $75, low to high. In this scenario, MMM stock could advance $75 by early summer and continue to advance from there.
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