MMM - Embedded Expectations Analysis - 2020 10 02
3M Company (MMM:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.5x Uniform P/E. At these levels, the market has expectations for profitability to remain flat, but management may be concerned about revenues, organic sales growth, and the Safety and Industrial businessSpecifically, management may lack confidence in their ability to increase adjusted free cash flow, improve their year-over-year revenue, and manage expenses. Moreover, they may have concerns about their ability to improve sales trends and maintain organic growth, especially in China. In addition, they may be exaggerating the potential of their new products and their ability to produce two billion respirators. Furthermore, they may lack confidence in their ability to sustain the Safety and Industrial segment's margins and sustain stronger point-of-sales. Finally, they may have concerns about their new organizational structure, the sustainability of customer demand for Meguiar's car care products, and their ability to continue investing in research and development
3M is a technology company. The company has four segments: Safety and Industrial, which consists of personal safety, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules; Transportation and Electronics, which consists of electronics, automotive and aerospace, commercial solutions, advanced materials, and transportation safety; Health Care, which includes medical solutions, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety; and Consumer, which consists of home improvement, stationery and office supplies, home care, and consumer health care.
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