MMM - Embedded Expectations Analysis - 2021 01 26
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 is pricing in expectations for profitability to remain stable, but management may be concerned about EBITDA margin growth, personal safety product demand, and the impact of their cost reduction actionsSpecifically, management may lack confidence in their ability to mitigate adjusted EPS declines, continue raising prices, and further reduce inventory stockpiles. Furthermore, management may also be overstating their ability to lead the economic recovery, and they may have concerns about the sustainability of personal safety product demand and the pandemic's impact on the food services industry. Moreover, management may lack confidence in their ability to sustain growth in adjusted EBITDA margins, Health Care segment margins, and Consumer segment organic sales. Finally, they may be exaggerating the impact of their cost actions and the sustainability of respirator demand
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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