Thursday, October 1, 2015

3M Company: A Diversified Conglomerate Poised To Continue Delivering Results

The industrial sector has been seeing large declines so far through 2015 due to varied reasons: a strong US dollar is hurting the large multinationals, interest rate hikes, China's economy slowing, potentially another recession in the works. Pick your disaster du jour and the stock markets are responding. In volatile market scenarios, it pays to invest your capital with the highest-quality companies you can find with proven histories of weathering all sorts of economic storms. The company I want to look at today has increased the dividend for 57 consecutive years, holds over 100,000 patents, operations in over 70 countries, and has a product lineup that covers just about every industry possible. The company I'm taking about is 3M Company (NYSE:MMM), and it is trading around $139 per share, giving investors a current yield of 2.95%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from 3M Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Owners of 3M have received solid returns over the last 10 years. According to, shares of MMM have earned investors a total return of 246.5% or 9.4% annualized over the last decade. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that 3M Company has delivered.

Continue reading the 3M Company stock analysis on Seeking Alpha.

Also, you can check out other stock analyses at my Stock Analysis page.


  1. Hi PI,

    Seems like a solid company. I've never heard of it. I might take a closer look to it.


  2. Hi PIP,

    I consider opening a new position in MMM soon myself. Thanks for a great article!

  3. Thanks for sharing this analysis of MMM. Seems to have come at a great time as I have been reading about MMM as a potential buy among many DHI bloggers. Ideally, I'd like a little better valuation on the stock but it's a super high quality name that rarely goes on sale.

  4. A small qualitative factor: a friend works for 3M. He is happy reports most employees are happy. A good sign the company is robustly healthy.

  5. For some reason I have always stayed away from MMM. I''m not sure why. Thanks for the article. I'll add MMM to my watchlist.

  6. Great analysis!
    Thanks for sharing, 3M is surely looking strong on many levels.

    - mraitn

  7. Nice purchase on a company that is rarely on sale.

  8. Definitely one of my favorite companies, I need it to do a 2:1 or 3:1 split so I can sell a put on it. Nice write up JC