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
|
PG
|
KMB
|
---|---|---|---|
Price/Earnings (Normalized) | 11.32 | 25.42 | 19.31 |
Price/Book Value | 12.02 | 8.02 | 46.87 |
Price/Sales | 1.77 | 4.79 | 2.11 |
Price/Cash Flow | 9.10 | 20.08 | 14.57 |
Metric
|
MMM
|
PG
|
KMB
|
---|---|---|---|
Quick Ratio | 0.71 | 0.40 | 0.47 |
Current Ratio | 1.07 | 0.64 | 0.82 |
Interest Coverage | −9.55 | 20.66 | 7.67 |
Metric
|
MMM
|
PG
|
KMB
|
---|---|---|---|
Return on Assets (Normalized) | 10.56% | 13.58% | 12.65% |
Return on Equity (Normalized) | 54.15% | 35.76% | 331.30% |
Return on Invested Capital (Normalized) | 21.33% | 20.36% | 26.41% |
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Name
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
|
Market Cap
|
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