1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
After reviewing wide-moat 3M’s first-quarter results, we decrease our fair value estimate by 3% to $186, in line with the price action on the trading day. We raised our revenue assumptions, since 3M is running surprisingly ahead of our prior projections (thanks to price increases). That said, we reduced our full-year operating margin projections by 120 basis points. This brought our GAAP down to $9.99 from $10.53 previously. This implies adjusted EPS of $10.88.
3M is a multinational conglomerate that has operated since 1902 when it was known as Minnesota Mining and Manufacturing. The company is well-known for its research and development laboratory, and the firm leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company’s revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of the firm’s net sales. Many of the company’s 60,000-plus products touch and concern a variety of consumers and end markets.
