3M
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | MMM | Checked against | |
|---|---|---|---|
| Owner earnings | $3.65bn | positive | ✓ |
| Return on equity | 69.1% | median 11.7% | ✓ |
| Debt to equity | 2.68x | median 0.79x | ✗ |
| Operating margin | 18.6% | median 15.0% | ✓ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | MMM | Checked against | |
|---|---|---|---|
| Return on capital employed | 26.8% | median 10.1% | ✓ |
| Cash conversion | 0.71x | median 1.78x | ✗ |
| Operating margin | 18.6% | median 15.0% | ✓ |
| Debt to equity | 2.68x | median 0.79x | ✗ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 3/3
| Measure | MMM | Checked against | |
|---|---|---|---|
| Return on capital employed | 26.8% | median 10.1% | ✓ |
| Return on equity | 69.1% | median 11.7% | ✓ |
| Operating margin | 18.6% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Charlie Munger has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 2/4
| Measure | MMM | Checked against | |
|---|---|---|---|
| Return on equity | 69.1% | median 11.7% | ✓ |
| Debt to equity | 2.68x | median 0.79x | ✗ |
| Cash conversion | 0.71x | median 1.78x | ✗ |
| Return on equity, sustained | 9 of 10 | 8 of 10 above median | ✓ |
Passes 2 of 4. To be clear: Chuck Akre has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/4
| Measure | MMM | Checked against | |
|---|---|---|---|
| Operating margin | 18.6% | median 15.0% | ✓ |
| Net margin | 13.0% | median 10.2% | ✓ |
| Return on capital employed | 26.8% | median 10.1% | ✓ |
| Operating margin, held or improving | 18.6% | 10-yr median 19.6% | ✗ |
Passes 3 of 4. To be clear: Philip Fisher has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/2
| Measure | MMM | Checked against | |
|---|---|---|---|
| Current ratio | 1.71x | median 1.25x | ✓ |
| Debt to equity | 2.68x | median 0.79x | ✗ |
Passes 1 of 2. To be clear: Walter Schloss has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/3
| Measure | MMM | Checked against | |
|---|---|---|---|
| Current ratio | 1.71x | 2.00x published | ✗ |
| Long-term debt to working capital | 1.61x | 1.00x published | ✗ |
| Positive earnings, ten years running | 2 yrs | 10 published | ✗ |
Passes 0 of 3. To be clear: Benjamin Graham has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | MMM | Checked against | |
|---|---|---|---|
| Return on capital employed | 26.8% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | MMM | Checked against | |
|---|---|---|---|
| Debt to equity | 2.68x | median 0.79x | ✗ |
| Net margin | 13.0% | median 10.2% | ✓ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about 3M. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 48.7% | whyThe figure most screeners publish. |
| Operating cash flow | 67.7% | whyAbsorbs working-capital swings that earnings do not. |
| Free cash flow | 111.9% | whyAfter maintaining the business. |
Spread between highest and lowest: 63.2 percentage points. Same filings, different denominators.
Coverage rating 1 / 100 — Not covered. ? Peer standing 1/50Direction 0/30Stability 0/20
Against its own history: 111.9% this year vs 65.4% median over the prior 5. A gap this size is usually a one-off — acquisition, settlement, cyclical trough — not a dividend that stopped being funded. The rating reads the latest year; the table shows the trend.
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 111.9% |
| 2024-12-31 | 310.7% |
| 2023-12-31 | 65.4% |
| 2022-12-31 | 87.7% |
| 2021-12-31 | 58.5% |
| 2020-12-31 | 51.2% |
3% of the 38 health care here pay out more — at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $2.92 ÷ diluted EPS $6.00
- Operating cash flow — dividends paid $1,562m ÷ operating cash flow $2,306m
- Free cash flow — dividends paid $1,562m ÷ (operating cash flow $2,306m − capex $910m)
Where the figures came from
- 10-K filed 2026-02-03 · accession 0000066740-26-000014
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: covered on earnings, not on the basis that applies · rated not covered · when it files.
When this changes
Every figure above is recomputed whenever 3M files. The monthly letter carries what filed, what moved, and one finding computed across every company here.