1.89%
19.57%
21.04%
21.81%
92.88%
11.23%
13.64%

Company Description

3M Company operates as a diversified technology company worldwide.It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer.The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles.


The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety.The Healthcare segment offers food safety indicator solutions; health care procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontia solutions; and filtration and purification systems.The Consumer segment provides consumer bandages, braces, supports and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products.


It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers.The company was founded in 1902 and is based in St. Paul, Minnesota.

Market Data

Last Price 154.4
Change Percentage 1.89%
Open 152
Previous Close 151.54
Market Cap ( Millions) 83294
Volume 3408965
Year High 154.65
Year Low 75.65
M A 50 133.82
M A 200 120.33

Financial Ratios

FCF Yield 1.12%
Dividend Yield 2.18%
ROE 96.39%
Debt / Equity 339.16%
Net Debt / EBIDTA 113.08%
Price To Book 21.55
Price Earnings Ratio 20.11
Price To FCF 89.66
Price To sales 3.14
EV / EBITDA 13.51

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Safety and Industrial

Expected Growth : 4.65 %

What the company do ?

The Safety and Industrial segment from 3M Company provides personal protective equipment, fall protection, and industrial adhesives and tapes for various industries.

Why we expect these perspectives ?

The 4.65% growth in Safety and Industrial segment of 3M Company is driven by increasing demand for personal protective equipment, growth in automotive and electronics markets, and strategic acquisitions. Additionally, 3M's focus on innovation, cost savings initiatives, and geographic expansion in high-growth markets also contribute to the segment's growth.

Segment nΒ°2 -> Transportation and Electronics

Expected Growth : 4.4 %

What the company do ?

3M's Transportation and Electronics segment provides materials and solutions for the automotive, aerospace, and electronics industries, including adhesives, abrasives, and electronic materials.

Why we expect these perspectives ?

For 3M's Transportation segment, growth drivers include increasing demand for automotive electrification, advanced materials for lightweighting, and safety features. In Electronics, growth is driven by rising adoption of 5G, IoT, and artificial intelligence, as well as growing demand for high-performance materials and advanced ceramics.

Segment nΒ°3 -> Health Care

Expected Growth : 7.88 %

What the company do ?

3M's Health Care business provides medical solutions for wound care, oral care, and health information systems, improving patient outcomes and healthcare efficiency.

Why we expect these perspectives ?

3M's Health Care segment growth of 7.88% is driven by increasing demand for medical solutions, expansion in emerging markets, and strategic acquisitions. The company's innovative products, such as wound care and oral care solutions, are experiencing strong adoption. Additionally, 3M's focus on digital health and healthcare IT is contributing to growth.

Segment nΒ°4 -> Consumer

Expected Growth : 4.65 %

What the company do ?

The Consumer segment from 3M Company includes a wide range of products for commercial and personal use, such as office supplies, stationery, and craft materials.

Why we expect these perspectives ?

The 4.65% growth in 3M's Consumer segment is driven by increasing demand for home improvement and DIY products, as well as a rise in online sales. Additionally, 3M's strategic investments in e-commerce and digital marketing have expanded its customer reach, contributing to the segment's growth.

Segment nΒ°5 -> Corporate and Unallocated

Expected Growth : 4.65 %

What the company do ?

Corporate and Unallocated from 3M Company refers to the central corporate functions and unallocated costs not attributed to specific business segments, including headquarters, research and development, and other miscellaneous expenses.

Why we expect these perspectives ?

3M's Corporate and Unallocated segment growth of 4.65% is driven by strategic cost savings initiatives, operational efficiencies, and a favorable mix of higher-margin businesses. Additionally, the company's investments in digital transformation, innovation, and research and development have contributed to top-line growth.

3M Company Products

Product Range What is it ?
Adhesives A wide range of adhesives for industrial, commercial, and consumer applications
Abrasive Systems Abrasive products for grinding, cutting, and finishing applications
Advanced Ceramics Ceramic materials for industrial, automotive, and electronic applications
Electronics Materials Materials and components for electronic devices and circuits
Filtek Dental Products Dental restorative materials and equipment
Health Care Products Medical supplies and equipment for wound care, oral care, and drug delivery
Industrial Tapes Adhesive tapes for industrial, commercial, and consumer applications
Littmann Stethoscopes High-quality stethoscopes for medical professionals
Occupational Health and Environmental Safety Personal protective equipment and safety products
Office Supplies Office products such as Post-it Notes, Scotch Tape, and Scotch-Brite cleaning products
Personal Care Products Oral care, skin care, and wound care products for consumers
Thinsulate Insulation Thermal insulation materials for clothing, footwear, and industrial applications

3M Company's Porter Forces

The threat of substitutes for 3M Company is medium due to the presence of alternative products and services in the market. However, 3M's strong brand reputation and diversified product portfolio mitigate this threat to some extent.

The bargaining power of customers for 3M Company is low due to the company's strong brand reputation and diversified product portfolio, which reduces the negotiating power of customers.

The bargaining power of suppliers for 3M Company is medium due to the presence of multiple suppliers in the market. However, 3M's strong relationships with its suppliers and its diversified supply chain mitigate this threat to some extent.

The threat of new entrants for 3M Company is low due to the high barriers to entry in the industry, including high capital requirements and the need for specialized technology and expertise.

The intensity of rivalry for 3M Company is high due to the presence of several established players in the industry, including competitors such as DuPont and BASF. This leads to a highly competitive market with intense price competition and advertising wars.

Capital Structure

Value
Debt Weight 77.81%
Debt Cost 7.74%
Equity Weight 22.19%
Equity Cost 9.15%
WACC 8.05%
Leverage 350.61%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CODI Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or …
PCAR PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, …
PAYX Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It …
HON Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine …
TDG TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
154.4$
Current Price
154.4$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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