AAPL 175.04 4.3271% MSFT 427.93 1.1033% GOOG 160.79 1.9853% GOOGL 159.41 2.0943% AMZN 189.05 1.6671% NVDA 906.16 4.1097% META 523.16 0.6406% TSLA 174.6 1.6535% TSM 147.2 0.6702% LLY 759.59 -0.3137% V 275.68 0.4372% AVGO 1382.46 4.5441% JPM 195.43 -0.0205% UNH 441.72 -1.8509% NVO 125.4 0.3762% WMT 60.09 -0.8743% LVMUY 171.12 0.5228% XOM 121.78 -0.3437% LVMHF 857.08 0.5255% MA 468.31 -0.1833%

Jan 25, 2023

MMM:NYSE
Investment Type
Large-cap
Risk Level
Action
Rec. Price ($)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

3M Company is a diversified global manufacturer, technology innovator, and marketer of a variety of products and services. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software, and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

Compared to the industry median, MMM's profit margins in FY22 were outstanding. When compared to the industry median, MMM has outperformed in every sector, showing effective resource allocation and operational efficiency. The additional graph demonstrates that MMM has a remarkable ROE of 38.80% in FY22 as compared to a 21.90% of the industry median, indicating that the business has produced value for its shareholders despite the difficult macroeconomic situations.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~30.78% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc. and State Street Global Advisors (US) are the biggest shareholders, holding the maximum stake in the company at ~8.35% and ~5.86%, respectively.

1.5 Consistent dividend payments history since 1973:

Since 1973, 3M has distributed quarterly dividends. The Board of Directors of 3M announced a Q1FY22 dividend in February 2022, increasing it by 1% to USD 1.49 per share. For 3M, this year marked the 64th year in a row of dividend increases. The 3M Board of Directors declared a dividend on the company's common stock of USD 1.49 per share for the fourth quarter of 2022. The dividend is payable on Dec. 12, 2022, to shareholders of record at the close of business on Nov. 18, 2022.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of FY22:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 24, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


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Disclaimer-

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