Buffett Brain · Research note
Score updated 29 Oct 2026
MMM· Industrials
3M
3M's declining EPS and weak owner earnings yield indicate a business struggling to meet Buffett's criteria for a durable moat and strong management.
Buffett fit
Weak fit
Owner
31
Durability
8
Management
50
Price
28
Score updated 29 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of 3M, the next 10 years would be focused on stabilizing earnings and improving profitability.
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The 10-year test reveals significant risks. The decline in EPS and revenue suggests potential weaknesses in competitive positioning.
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3M's management has reduced the share count by -1.57% CAGR over 5 years, with a yield of 2.58%.
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The current of 25.7 and EV/ of 17.6 suggest an overvaluation relative to performance.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 19.2% is in the top quintile for the sector.
- 2 (TTM) of 24.1% is top-quintile in its sector.
- 3Interest coverage ratio of 5.5 indicates ability to meet interest obligations.
- 4Current ratio of 1.71 shows adequate short-term financial health.
Concerns
6- 1EPS CAGR of -16.13% over 5 years indicates declining earnings.
- 2 yield of 1.67% is significantly below the 8-10% target.
- 3Revenue CAGR of -1.57% over 5 years reflects a shrinking business.
- 4 of 39.9% is below the sector's top-quintile cutoff.
Price history
$173+15.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
3M operates through three segments: Safety and Industrial, Transportation and Electronics, and Consumer. The company's revenue is $24.95B, with a net income of $3.25B. However, the revenue CAGR over the past 5 years is -1.57%, indicating a decline. The of 19.2% is in the top quintile for its sector, but the net margin of 13% is below the sector's top quintile.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Industrials
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