Now trading at a price of $106.22, 3M Company moved 0.8% Friday
3M Company returned losses of -27.2% last year, with its stock price reaching a high of $154.66 and a low of $100.16. Over the same period, the stock underperformed the S&P 500 index by -28.0%. As of April 2023, the company's 50-day average price was $105.41. 3M Company provides diversified technology services in the United States and internationally. Based in Saint Paul, MN, the large-cap Industrials company has 92,000 full time employees. 3M Company has not offered a dividend during the last year.
Overview of the Company's Finances:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $32,136 | $32,184 | $35,355 | $34,229 |
| Gross Margins | 46.7% | 48.4% | 46.8% | 43.8% |
| Operating Margins | 18.9% | 21.0% | 20.8% | 11.9% |
| Net Margins | 14.22% | 16.73% | 16.75% | 16.88% |
| Net Income (MM) | 4,570 | 5,384 | 5,921 | 5,777 |
| Net Income(MM) | $4,570 | $5,384 | $5,921 | $5,777 |
| Interest Cost | -$368,000 | -$500,000 | -$462,000 | -$395,000 |
| Depreciation & Amort. | -$1,593,000 | -$1,911,000 | -$1,915,000 | -$1,831,000 |
| Earnings Per Share | $7.81 | $9.36 | $10.12 | $9.68 |
| EPS Growth | n/a | 19.85% | 8.12% | -4.35% |
| Diluted Shares (MM) | 585 | 582 | 585 | 552 |
| Free Cash Flow (MM) | $5,371 | $6,612 | $5,851 | $3,842 |
| FCF Growth | n/a | 23.11% | -11.51% | -34.34% |
| Net Current Assets (MM) | -$21,562 | -$19,431 | -$16,552 | -$16,997 |
| Current Ratio | 1.41 | 1.89 | 1.7 | 1.54 |
| Long Term Debt | $17,518,000 | $17,989,000 | $16,056,000 | $14,001,000 |
| Net Debt / EBITDA | 2.38 | 1.58 | 1.36 | 1.46 |
A Very Low P/E Ratio but Trades Above Its Graham Number:
3M Company has a trailing twelve month P/E ratio of 10.9, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $9.55, the company has a forward P/E ratio of 11.0. The 4.1% compound average growth rate of 3M Company's historical and projected earnings per share yields a PEG ratio of 2.65. This suggests that these shares are overvalued. The market is placing a fair value on 3M Company's equity, since its P/B ratio of 3.96 is comparable to its sector average of 3.78. The company's shares are currently trading 42.3% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for 3M Company:
The 17 analysts following 3M Company have set target prices ranging from $95.0 to $210.0 per share, for an average of $117.16 with a hold rating. As of April 2023, the company is trading -10.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
3M Company has an average amount of shares sold short because 2.4% of the company's shares are sold short. Institutions own 68.4% of the company's shares, and the insider ownership rate stands at 0.12%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 8% stake in the company is worth $4,978,760,786.
