In Focus – MMM

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.

Background

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.

Stock Fundamentals

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

Ticker MMM
Industry Construction Supplies & Fixtures
Price $ 168.66
Market Cap  $ 104,670
Dividend Yield 2.63
Dividend/CFOp 0.406
Equity/Assets 0.366
Average Equity/Assets 0.457
Financial Strength Average
Growth Prospects Above Average
Beta 1.16
Price Volatility Below Average
Stock Fundamentals B

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)

We cover 2,000 companies. If you would like to see more research on all these companies, click the link below.

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Why the Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – MMM

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