3M Co
MMM: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $148.00 | Xcwgw | Wyvrgdvkk |
3M's Liabilities Still Concern Us, but Recent Results Are Better
Business Strategy and Outlook
Estimating 3M's legal liabilities is a highly uncertain exercise. While some believe these total liabilities are greater than the firm's market capitalization, we think its June 22 settlement reduces some of 3M's risks and is the right move for shareholders. However, we now believe 3M is a value trap given its continued exposure to legal liabilities and the risk of a dividend cut.