3M Is Sailing Into A Severe Storm

Oct. 20, 2022 8:43 AM ET3M Company (MMM) StockMMM26 Comments
Investor Overview
2.4K Followers

Summary

  • 230,000 jury trials are demanding hefty damages and Bloomberg estimates that the company will bear some $100B in losses.
  • 3M announced it is spinning off the Health Care business unit to create value for their shareholders.
  • Because 3M lacks growth catalysts and there is a good chance the company will have to pay hefty claims, I see little chance of the share price rising anytime soon.
  • Despite the fact that the stock valuation currently looks favorable, the revenue outlook is positive, and management is shareholder-friendly, I believe MMM stock is a sell.

3M tape manufacturing facility. This plant is part of the Industrial, Adhesives and Tape Division V

jetcityimage

Introduction

3M (NYSE:MMM) is known as a large conglomerate that has been growing steadily for years and increasing its dividends year over year. Currently, the company future looks less rosy because of a lawsuit filed over malfunctioning earplugs. American soldiers

This article was written by

2.4K Followers
I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About MMM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on MMM

Related Stocks

SymbolLast Price% Chg
MMM
--