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HomeValue stockTop Value Stock Analysis : 3M Company - 105$

Top Value Stock Analysis : 3M Company – 105$

Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.

Value Stock Analysis as on 05 Aug. 2023

Top Value Stock

NYSE : MMM

  • * 3M (Minnesota Mining and Manufacturing Company).
  • * 3M is a multinational conglomerate that operates in various industries, including manufacturing, health care, safety and security, electronics, energy, and consumer goods.
  • * 3M is engaged with other companies and directly with end users also through its home and life products.
  • * 3M makes from construction materials and chemicals to medical equipment and household cleaning items, 3M makes and sells a wide variety of goods. The majority of sales and profits are produced by the company’s Safety and Industrial division.
  • * Its business is very diversified all over the world in different countries.

Revenue Splits:

  • $10.3 B (32.7%) – Industrial business
  • $5.5 B (17.5%) – Safety & Graphics business
  • $5.4 B (17.2%) – Healthcare business
  • $5.2 B (16.6%) – Electronics & energy business
  • $4.4 B (9.6%) – Consumer business

What we think are pros of business:

  1. High growth potential: 3M produces products for almost all sector industries and this will show better performance in sales growth.
  2. It does the white-labeling on products to minimize the high-cost operational activities.
  3. 3M has more product line than other competitors which reduce the future risk of dependency.
  4. Strong market position: well-known brand, large customer base from different regions or countries.
  5. Global Presence: This level of Global presence enables 3M to capitalize on different regional markets and respond to market fluctuations effectively.

What we think the risks are:

  1. Raw Material Costs: Fluctuations in the prices of raw materials and commodities could impact 3M’s production costs, affecting its margins and profitability.
  2. 3M doesn’t show better results in previous Quarters.
  3. If the world hits the Recession then it will not show better performance in its financial reports.
  4. So many regulatory compliances have to follow in different countries for its health care and chemicals products.

Fundamentals:

  • Market Cap: 58.24 Billion
  • Enterprise Value: 73.52 B
  • P/E: 10.90
  • EPS: 9.68
  • Net Profit margin = 16.88%
  • Dividend: 5.6%

Technical for a long-term perspective:

– Taking support at long-term support zone around 100 levels.

– Bouncing from a psychological level of 100 and price is also creating a positive upside momentum.

– It may retest the upper 200 Exponential Moving Averages.

– It may also touch the upper trendline within the next 1 year which may give us up to 60%+ returns from the current levels.

– RSI is also creating a bullish signal from this level and it may shoot up after 50.


Entry = Above 110

Stop Loss = 98

Target = 170 & 200

Our Final Thought:

3M (MMM) is well known market leader in its industry and it will be effected by the high economic growth in the long run.

Stock price of 3M is very discounted from the upper levels which shows the discounted price of the current recession scenario around the world. 3M caters its business activities around the world with having large market share in developing countries which shows the high growth chances in the future with growth of developing countries like India. 3M also invests in Research and development of its all product line with the active innovation according to the need of changing world. This company has high growth potential for the next 5 years. From this level of stock price, It may show exponential growth in the next 2 years.

Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and  your own due diligence before investing.

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