3M Gross Profit vs. EBITDA
| MMM Stock | MXN 2,640 41.00 1.53% |
For 3M profitability analysis, we use financial ratios and fundamental drivers that measure the ability of 3M to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well 3M Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between 3M's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of 3M Company over time as well as its relative position and ranking within its peers.
3M |
3M Company EBITDA vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining 3M's current stock value. Our valuation model uses many indicators to compare 3M value to that of its competitors to determine the firm's financial worth. 3M Company is regarded second in gross profit category among its peers. It is considered to be number one stock in ebitda category among its peers totaling about 0.58 of EBITDA per Gross Profit. The ratio of Gross Profit to EBITDA for 3M Company is roughly 1.73 . Comparative valuation analysis is a catch-all model that can be used if you cannot value 3M by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for 3M's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.3M EBITDA vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
3M |
| = | 15 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
3M |
| = | 8.69 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
3M EBITDA Comparison
3M is currently under evaluation in ebitda category among its peers.
3M Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in 3M, profitability is also one of the essential criteria for including it into their portfolios because, without profit, 3M will eventually generate negative long term returns. The profitability progress is the general direction of 3M's change in net profit over the period of time. It can combine multiple indicators of 3M, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
3M Company develops, manufactures, and markets various products worldwide. The company serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. 3M Company was founded in 1902 and is headquartered in St. 3M COMPANY operates under Diversified Industrials classification in Mexico and is traded on Mexico Stock Exchange. It employs 93000 people.
3M Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on 3M. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of 3M position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the 3M's important profitability drivers and their relationship over time.
Use 3M in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if 3M position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 3M will appreciate offsetting losses from the drop in the long position's value.3M Pair Trading
3M Company Pair Trading Analysis
The ability to find closely correlated positions to 3M could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace 3M when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back 3M - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling 3M Company to buy it.
The correlation of 3M is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as 3M moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if 3M Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for 3M can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your 3M position
In addition to having 3M in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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Additional Tools for 3M Stock Analysis
When running 3M's price analysis, check to measure 3M's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 3M is operating at the current time. Most of 3M's value examination focuses on studying past and present price action to predict the probability of 3M's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 3M's price. Additionally, you may evaluate how the addition of 3M to your portfolios can decrease your overall portfolio volatility.