3M Company


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SKU: MMM Category:


3M managed to deliver yet another all-around beat but its outlook for the rest of the year has been disappointing. The industrial conglomerate, known to produce everything from post-its and adhesives to industrial sandpaper and N95 masks saw a recovery in many of its key segments but has been facing strong inflationary pressures. 3M witnessed surging raw material and freight costs which are likely to lower its 2021 margins. Moreover, the company, which is the largest American producer of N95 masks, saw a waning demand for these masks given the increasing penetration of Covid-19 vaccines across the globe. Its revenue outlook for the year also appears to be in the single digits. The company has attempted to raise product prices but would be unable to maintain the same level of profitability given other issues pushing up costs such as natural disasters in China and Germany, disrupted container operations at South African ports, slowed global supply chain operations, and so on. We maintain a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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