Aureus
FRed Flag

3M Company(MMM)

F

Financial data as of Dec 31, 2025Declining · Industrials

FCF Margin5.6%Free Cash Flow / Revenue
Cash Conversion71.0%Operating CF / Net Income
Free Cash Flow$1.4B
Revenue$24.9B
Net Cash-$7.4BNet debt position
Debt / FCF9.0xElevated debt burden
Current Ratio1.71Adequate short-term liquidity
YoY FCF Growth-12.6%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-1High debt-to-FCF ratio (9.0x)
→
-0.5FCF trend declining (-12.6% YoY)
→
-0.5Highly volatile FCF (consistency: 1.91)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (5.6%)
  • Heavy debt position ($7.4B)
  • High debt-to-FCF ratio (9.0x)
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF
  • Significant FCF decline (-12.6% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.6%
Net Margin13.0%
Operating CF Margin9.2%
CapEx Ratio3.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$7.4BNet debt position
Debt / FCF9.0xElevated debt burden
Current Ratio1.71Strong liquidity
Debt / Equity2.68High leverage

Quarterly FCF Trend

-12.6% YoYDeclining (-12.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company Name3M Company
SectorIndustrials
Free Cash Flow$1.4B
Revenue$24.9B
Net Income$3.3B
Operating Cash Flow$2.3B
Capital Expenditure$910.0M
FCF Margin5.6%
Cash Conversion Rate71.0%
Net Margin13.0%
Total Debt$12.6B
Total Cash$5.2B
Net Cash-$7.4B
Current Ratio1.71
Debt / Equity2.68
Debt / FCF9.0x
YoY FCF Growth-12.6%
Positive Quarters3 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

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Sector Report4 min read

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The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.

Feb 13, 2026
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