Aureus
DWarning

3M Company(MMM)

D

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin4.7%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 / FCF10.8xElevated debt burden
Current Ratio1.71Adequate short-term liquidity
YoY FCF Growth+100.0%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 (10.8x; 8.6x sector-adjusted)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 3.52)
→
FinalD

Analysis Summary

Strengths

  • Strong YoY FCF growth (+100.0%)

Concerns

  • Low FCF margin (4.7%)
  • Heavy debt position ($7.4B net debt, 10.8x FCF)
  • High debt-to-FCF ratio (10.8x)
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.2B stock-based compensation (16% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin4.7%
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 / FCF10.8xElevated debt burden
Current Ratio1.71Strong liquidity
Debt / Equity2.68High leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

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 Margin4.7%
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 / FCF10.8x
YoY FCF Growth+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeD
Data SourceYahoo Finance

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