3M Co ($MMM) Cautious Buy or Hold to $134 Confident Investor Rating: Fair

Company name 3M Co
Stock ticker MMM
Live stock price [stckqut]MMM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $134.75
Target stock price (averages with growth) $159.7
Target stock price (averages with no growth) $131.03
Target stock price (manual assumptions) $144.9

The following company description is from Google Finance: http://www.google.com/finance?q=mmm

3M Company (3M) is a diversified technology company. The Company operates in six segments: industrial and transportation; healthcare; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M products are sold through a number of distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a range of trades in a number of countries worldwide. In April 2012, it acquired CodeRyte Inc. In September 2012, it acquired the business of Federal Signal Technologies Group (FSTech) from Federal Signal Corporation. On November 28, 2012, the Company acquired Ceradyne, Inc. In April 2014, the Company acquired Treo Solutions.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in 3M Co as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of 3M Co calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $143.32
  • Growth: 0.1
  • Current EPS (TTM): $6.9
  • P/E: 21
  • Future EPS Calc: $11.11
  • Future Stock Price Calc: $233.36
  • Target stock price: $144.9

I hope that this makes you a better investor. [/s2If]

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