3M Company (MMM:NYE) Analysts rate as an Underperform, $165 target

STA Research
by: STA Research
3M company stock

Analysts rate 3M Company with a consensus Underperform rating and a 12-month average target price of $165.36 per share.

Jefferies Financial LLC maintained 3M Company with a Hold rating and lowers the target price to $145 from $161 on the company’s stock.

Based on the 3M Company stock forecasts from 12 analysts, the average analyst target price for 3M Company is USD 165.36 over the next 12 months. 3M Company’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of 3M Company is Neutral, which is based on 8 positive signals and 7 negative signals. At the last closing, 3M Company’s stock price was USD 130.94. 3M Company’s stock price has changed by -13.24% over the past week, -19.56% over the past month and -32.90% over the last year.

The 3M Firm is a global diversified technology company. Safety and Industrial, Transportation and Electronics, Health Care, and Consumer are the four segments in which it operates. The corporation is situated in St. Paul, Minnesota, and was formed in 1902.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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