Determining whether a company is one of the best stocks to buy now requires a detailed examination of that company. The purpose of this report is to provide that detailed examination for the 3M Company.
3M (MMM) is a diversified manufacturer and technology company. It currently operates in five segments: Industrial, Safety & Graphics, Health Care, Electronics & Energy, and Consumer.
3M is headquartered in Saint Paul, Minnesota. But it does business worldwide, and it is currently in more than 70 countries.
3M is an excellent company. Its growth has been strong, steady, and balanced. Its metrics for its efficiency of operations are outstanding. It is a reliable dividend payer and a steady dividend grower. And despite its low equity-to-asset ratio, its finances are rock-solid.
Most importantly, its future growth looks rosy. And we can say this with more certainty than we can for most other companies. If we could give numbers for the clarity and predictability of its financial metrics, MMM would score well on that as well.
3M is simply one of the best-run companies we cover. We have liked MMM for many years. For many years we have never had a rating on its fundamentals lower than “Average”; and usually we have had a rating higher than “Average.”
Some companies are so reliably well-run and solid that when we buy them, we actually don’t mind when the price goes down because then we can buy more of them. MMM is one of those companies.
The only reason we do not currently rate its fundamentals even higher than we do is because the market sees what we see; and as a result, the price multiple on MMM is slightly on the high side. However, MMM is still one of the best stocks to buy now. And it still deserves at least an above average rating (i.e. “B”).
Stat Sheet – 3M Company 4/22/16
|Industry||Construction Supplies & Fixtures|
|Market Cap||$ 104,670|
|Growth Prospects||Above Average|
|Price Volatility||Below Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)
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