Is 3M Stock a Good Investment?
3M Investment Advice | MMM |
- Examine 3M's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research 3M's leadership team and their track record. Good management can help 3M navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Industrial Conglomerates space and any emerging trends that could impact 3M's business and its evolving consumer preferences.
- Compare 3M's performance and market position to its competitors. Analyze how 3M is positioned in terms of product offerings, innovation, and market share.
- Check if 3M pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about 3M's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in 3M Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if 3M Company is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine 3M Stock
Researching 3M's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 68.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.9. 3M Company recorded earning per share (EPS) of 9.6. The entity last dividend was issued on the 15th of November 2024. The firm had 1196:1000 split on the 1st of April 2024.
To determine if 3M is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding 3M's research are outlined below:
| The company reported the last year's revenue of 32.68 B. Reported Net Loss for the year was (6.98 B) with profit before taxes, overhead, and interest of 15 B. | |
| About 68.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: 49-Year-Old Makes 5,180 a Month in Dividends With Helps Me Sleep at Night Portfolio Top 10 Stocks You Cant Miss |
3M Quarterly Accounts Payable |
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3M uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in 3M Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to 3M's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 23rd of April 2024 Upcoming Quarterly Report | View | |
| 23rd of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact 3M's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises 3M's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-04-26 | 2007-03-31 | 1.12 | 1.28 | 0.16 | 14 | ||
2010-04-27 | 2010-03-31 | 1.21 | 1.4 | 0.19 | 15 | ||
2009-10-22 | 2009-09-30 | 1.17 | 1.37 | 0.2 | 17 | ||
2021-01-26 | 2020-12-31 | 2.15 | 2.38 | 0.23 | 10 | ||
2024-07-26 | 2024-06-30 | 1.68 | 1.93 | 0.25 | 14 | ||
2021-10-26 | 2021-09-30 | 2.2 | 2.45 | 0.25 | 11 | ||
2019-04-25 | 2019-03-31 | 2.49 | 2.23 | -0.26 | 10 | ||
2009-07-23 | 2009-06-30 | 0.94 | 1.2 | 0.26 | 27 |
Know 3M's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as 3M is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading 3M Company backward and forwards among themselves. 3M's institutional investor refers to the entity that pools money to purchase 3M's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital World Investors | 2024-09-30 | 4.9 M | Legal & General Group Plc | 2024-06-30 | 4.9 M | Norges Bank | 2024-06-30 | 4.4 M | Millennium Management Llc | 2024-06-30 | 4 M | Amvescap Plc. | 2024-06-30 | 4 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 3.8 M | Charles Schwab Investment Management Inc | 2024-09-30 | 3.6 M | Hhg Plc | 2024-06-30 | 3.4 M | Goldman Sachs Group Inc | 2024-06-30 | 3.4 M | Vanguard Group Inc | 2024-09-30 | 49.5 M | Blackrock Inc | 2024-06-30 | 38.4 M |
3M's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 72.71 B.Market Cap |
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3M's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.21) | (0.20) | |
| Return On Capital Employed | (0.26) | (0.25) | |
| Return On Assets | (0.14) | (0.13) | |
| Return On Equity | (1.46) | (1.38) |
Determining 3M's profitability involves analyzing its financial statements and using various financial metrics to determine if 3M is a good buy. For example, gross profit margin measures 3M's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of 3M's profitability and make more informed investment decisions.
3M's Earnings Breakdown by Geography
Evaluate 3M's management efficiency
3M Company has Return on Asset of 0.0903 % which means that on every $100 spent on assets, it made $0.0903 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 1.1329 %, implying that it generated $1.1329 on every 100 dollars invested. 3M's management efficiency ratios could be used to measure how well 3M manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of November 2024, Return On Tangible Assets is likely to grow to -0.2. In addition to that, Return On Capital Employed is likely to grow to -0.25. At this time, 3M's Non Current Assets Total are very stable compared to the past year. As of the 30th of November 2024, Other Current Assets is likely to grow to about 896.6 M, while Non Currrent Assets Other are likely to drop about 1.3 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 8.79 | 10.66 | |
| Tangible Book Value Per Share | (22.18) | (21.07) | |
| Enterprise Value Over EBITDA | (9.12) | (8.67) | |
| Price Book Value Ratio | 10.53 | 11.06 | |
| Enterprise Value Multiple | (9.12) | (8.67) | |
| Price Fair Value | 10.53 | 11.06 | |
| Enterprise Value | 88.9 B | 93.4 B |
3M Company has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Dividend Yield 0.0211 | Forward Dividend Yield 0.0211 | Forward Dividend Rate 2.8 | Beta 1.001 |
Basic technical analysis of 3M Stock
As of the 30th of November, 3M owns the Market Risk Adjusted Performance of 0.0339, coefficient of variation of 3578.87, and Standard Deviation of 1.43. In connection with fundamental indicators, the technical analysis model gives you tools to check timely technical drivers of 3M Company, as well as the relationship between them. Please confirm 3M Company standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if 3M Company is priced fairly, providing market reflects its prevailing price of 133.53 per share. Given that 3M Company has jensen alpha of (0.13), we suggest you to validate 3M's latest market performance to make sure the company can sustain itself sooner or later.3M's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific 3M insiders, such as employees or executives, is commonly permitted as long as it does not rely on 3M's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases 3M insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
3M's Outstanding Corporate Bonds
3M issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. 3M Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most 3M bonds can be classified according to their maturity, which is the date when 3M Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US88579YBP51 Corp BondUS88579YBP51 | View | |
| US88579YBM21 Corp BondUS88579YBM21 | View | |
| 3M Co 305 Corp BondUS88579YBN04 | View | |
| 3M CO Corp BondUS88579YBK64 | View | |
| 3M CO Corp BondUS88579YBJ91 | View | |
| 3M MTN Corp BondUS88579YBG52 | View | |
| 3M CO Corp BondUS88579YBH36 | View | |
| 3M 3625 percent Corp BondUS88579YBC49 | View |
Understand 3M's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing 3M's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.026 | |||
| Market Risk Adjusted Performance | 0.0339 | |||
| Mean Deviation | 1.04 | |||
| Semi Deviation | 1.21 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 3578.87 | |||
| Standard Deviation | 1.43 | |||
| Variance | 2.05 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | (0.08) | |||
| Treynor Ratio | 0.0239 | |||
| Maximum Drawdown | 7.84 | |||
| Value At Risk | (2.13) | |||
| Potential Upside | 2.02 | |||
| Downside Variance | 1.55 | |||
| Semi Variance | 1.46 | |||
| Expected Short fall | (1.14) | |||
| Skewness | 1.12 | |||
| Kurtosis | 4.13 |
| Risk Adjusted Performance | 0.026 | |||
| Market Risk Adjusted Performance | 0.0339 | |||
| Mean Deviation | 1.04 | |||
| Semi Deviation | 1.21 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 3578.87 | |||
| Standard Deviation | 1.43 | |||
| Variance | 2.05 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | (0.08) | |||
| Treynor Ratio | 0.0239 | |||
| Maximum Drawdown | 7.84 | |||
| Value At Risk | (2.13) | |||
| Potential Upside | 2.02 | |||
| Downside Variance | 1.55 | |||
| Semi Variance | 1.46 | |||
| Expected Short fall | (1.14) | |||
| Skewness | 1.12 | |||
| Kurtosis | 4.13 |
Consider 3M's intraday indicators
3M intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of 3M stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
3M Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 14th of November 2024 Other Reports | ViewVerify | |
8K | 22nd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 17th of October 2024 An amended filing to the original Schedule 13G | ViewVerify |
3M Stock media impact
Far too much social signal, news, headlines, and media speculation about 3M that are available to investors today. That information is available publicly through 3M media outlets and privately through word of mouth or via 3M internal channels. However, regardless of the origin, that massive amount of 3M data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of 3M news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of 3M relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to 3M's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive 3M alpha.
3M Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards 3M can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
3M Company Historical Investor Sentiment
Investor biases related to 3M's public news can be used to forecast risks associated with an investment in 3M. The trend in average sentiment can be used to explain how an investor holding 3M can time the market purely based on public headlines and social activities around 3M Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
3M's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for 3M and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average 3M news discussions. The higher the estimate score, the more favorable the investor's outlook on 3M.
3M Corporate Directors
| Thomas Brown | Independent Director | Profile | |
| Ahmet Kent | Independent Director | Profile | |
| David Dillon | Independent Director | Profile | |
| Dambisa Moyo | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 3M Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Industrial Conglomerates space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 3M. If investors know 3M will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about 3M listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Dividend Share 4.41 | Earnings Share 9.6 | Revenue Per Share 58.972 | Quarterly Revenue Growth 0.004 |
The market value of 3M Company is measured differently than its book value, which is the value of 3M that is recorded on the company's balance sheet. Investors also form their own opinion of 3M's value that differs from its market value or its book value, called intrinsic value, which is 3M's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because 3M's market value can be influenced by many factors that don't directly affect 3M's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between 3M's value and its price, as these two are different measures arrived at by various means. Investors typically determine if 3M is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 3M's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.