Estimating 3M's legal liabilities is a highly uncertain exercise. While some believe these liabilities total greater than the firm's market capitalization, we think 3M's settlements and the spinoff of Solventum greatly reduce 3M's risks and is the right move for shareholders. While we remain concerned over 3M's incremental PFAS-related liabilities, we think they're manageable.
3M continues to emphasize innovation and keeps competitors away with generous levels of R&D spending, which typically totals nearly 6% of net sales.
While 3M has earned returns that have doubled its cost of capital for over 25 years, returns have declined and innovation has stagnated.
|
Metric
|
MMM
|
KMB
|
DD
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.42 | 19.97 | 23.11 |
Price/Book Value | 11.44 | 44.46 | 1.41 |
Price/Sales | 1.71 | 2.29 | 2.93 |
Price/Cash Flow | 9.47 | 15.22 | 15.20 |
|
Metric
|
MMM
|
KMB
|
DD
|
|---|---|---|---|
Quick Ratio | 1.19 | 0.47 | 1.42 |
Current Ratio | 1.64 | 0.81 | 2.33 |
Interest Coverage | −7.27 | 8.07 | 1.72 |
|
Metric
|
MMM
|
KMB
|
DD
|
|---|---|---|---|
Return on Assets (Normalized) | 10.67% | 13.44% | 3.84% |
Return on Equity (Normalized) | 71.61% | 303.53% | 6.07% |
Return on Invested Capital (Normalized) | 23.61% | 27.67% | 5.18% |
|
1-Day Chart
|
Name
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Price
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Morningstar Rating for Stocks
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Market Cap
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