The firm owns a Beta (Systematic Risk) of 1.0766, which signifies a somewhat significant risk relative to the market. Let's try to break down what 3M's beta means in this case. 3M returns are very sensitive to returns on the market. As the market goes up or down, 3M is expected to follow. Even though it is essential to pay attention to
3M Company existing
price patterns, it is always good to be careful when utilizing equity
price patterns. Our way in which we are foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. 3M exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
3M Company has an expected return of -0.21%. Please be advised to confirm 3M Company
maximum drawdown, and the
relationship between the
information ratio and
expected short fall to decide if
3M Company performance from the past will be repeated sooner or later.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include 3M income statement, its balance sheet, and the statement of cash flows. Potential 3M investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although 3M investors may use each financial statement separately, they are all related. The changes in 3M's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on 3M's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of 3M
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of 3M performance into the future periods or doing a reasonable stock valuation. The intrinsic value of 3M shares is the value that is considered the true value of the share. If
the intrinsic value of 3M is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares 3M. Please read more on our
fundamental analysis page.
How effective is 3M in utilizing its assets?
3M Company reports assets on its Balance Sheet. It represents the amount of 3M resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, 3M aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Industrial Conglomerates space. To get a better handle on how balance sheet or income statements item affect 3M volatility, please check the breakdown of all its
fundamentals.
Are 3M Earnings Expected to grow?
The
future earnings power of 3M involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of 3M factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. 3M
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of 3M
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of 3M earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. 3M dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. 3M one year expected dividend income is about USD3.0 per share.
At this time, 3M's
Dividend Yield is very stable compared to the past year. As of the 19th of April 2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 4.14, though
Dividends Paid is likely to grow to (3.1
B).
Investing in dividend-paying stocks, such as 3M Company is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in 3M must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for 3M. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
3M Gross Profit
3M Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing 3M previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show 3M Gross Profit growth over the last 10 years. Please check 3M's
gross profit and other
fundamental indicators for more details.
Breaking it down
There are few distinct groups of 3M stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of 3M is distributed among investors.
Ownership Allocation
3M Company secures a total of five hundred fifty-three million six hundred ten thousand
outstanding shares. Over half of 3M Company outstanding shares are owned by
institutions. These institutions are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Hence, these
institutions are subject to different rules and regulation than regular investors in 3M Company. Please watch out for any change in the
institutional holdings of 3M Company as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company retains, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors32.99% | | Institutions66.89% |
| Retail Investors | 32.99 |
| Insiders | 0.12 |
| Institutions | 66.89 |
Is 3M showing trail of lower volatility?
New Jensen Alpha is up to -0.1. Price may pull down again. 3M Company exhibits very low volatility with skewness of -1.3 and kurtosis of 7.23. However, we advise investors to further study 3M Company technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 3M's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact 3M's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
While some firms in the conglomerates industry are either recovering or due for a correction, 3M may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 1st of October 2022, our up-to-date 90 days 'Buy-vs-Sell' recommendation on the company is
Hold. We believe 3M is currently
undervalued with
low probability of distress for the next two years.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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