3M: Company Announces CEO Change; It’s About Time
Narrow-moat 3M announced it has named a new CEO in Bill Brown. We like the news and view the change as an indictment of the Roman era. That said, we maintain our $127 fair value estimate.
Narrow-moat 3M announced it has named a new CEO in Bill Brown. We like the news and view the change as an indictment of the Roman era. That said, we maintain our $127 fair value estimate.
3M continues to emphasize innovation and keeps competitors away with generous levels of R&D spending, which typically totals nearly 6% of net sales.
While 3M has earned returns that have doubled its cost of capital for over 25 years before the pandemic, gross profits over prior-year R&D spending have started to slow.
Metric
|
MMM
|
KMB
|
DD
|
---|---|---|---|
Price/Earnings (Normalized) | 11.34 | 18.85 | 21.13 |
Price/Book Value | 12.05 | 45.75 | 1.30 |
Price/Sales | 1.78 | 2.06 | 2.75 |
Price/Cash Flow | 9.12 | 14.22 | 14.14 |
Metric
|
MMM
|
KMB
|
DD
|
---|---|---|---|
Quick Ratio | 0.71 | 0.47 | 1.54 |
Current Ratio | 1.07 | 0.82 | 2.43 |
Interest Coverage | −9.55 | 7.67 | 1.88 |
Metric
|
MMM
|
KMB
|
DD
|
---|---|---|---|
Return on Assets (Normalized) | 10.56% | 12.65% | 3.90% |
Return on Equity (Normalized) | 54.15% | 331.30% | 6.14% |
Return on Invested Capital (Normalized) | 21.33% | 26.41% | 5.18% |
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