3M Company (NYSE:MMM)

CAPS Rating: 4 out of 5

More than just Post-it Notes and Scotch tape, 3M operates in areas that include health care, industrial, and transportation.


Player Avatar KCinAustria (< 20) Submitted: 10/17/2011 3:59:24 PM : Outperform Start Price: $70.34 MMM Score: +63.35

Why I bought MMM today:1) ROE consistently in the 25-35% range2) Profit margins consistently in the 12-16% range3) They have a long history of innovation4) Everyone has post-it notes & scotch tape5) Their balance sheet is fairly solid (I counted 12B in 'cash or things that could pretty easily turn into cash' vs 15B total liabilities)6) Their owner earnings have been growing at 11% annually for the last 10 years. (I calculate owner earnings as: OE=Income+D&A-Capital Expenses).7) They're a great company, at a good price.8) I calculate their intrinsic value to be 80B, which assumes a 3% growth rate forever, starting from 4.1B owner earnings (2010), with an 8% discount rate. Their current market cap is ~54B.9) I'm pretty sure this is a company I will still want to own in 10 years10) Dividend yield of 2.8%, and they have a history of raising dividends.

Featured Broker Partners