3M Company

3M Company (NYSE: MMM) is a diversified manufacturer, technology inventor, and marketer of various goods and services. Safety and Industrial, Transportation and Electronics, Health Care, and Consumer are its four operating segments. It has operations throughout the Americas, Asia Pacific, Europe, Middle East, Africa (EMEA), and other geographic regions.

Key Highlights

• The company reported a 16.72% rise in net sales to USD 17.80 billion during H1FY21 (ended June 30, 2021) compared to USD 15.25 billion during H1FY20, due to an increase in revenue across all segments.
• As a result, its net income (attributable to its shareholders) increased to USD 3.15 billion during H1FY21 from USD 2.61 billion reported during H1FY20.
• As of June 30, 2021, the company had cash and cash equivalents (including marketable securities) of USD 5.50 billion with a total debt of USD 18.25 billion, indicating a very stretched balance sheet.
• MMM had a reinvestment rate of 4.7% in Q2FY21 (ended June 30, 2021), lower than the prior quarter's 5.8%.
• The Scotch-Brite Clean Scan, the world's first consumer home cleaning efficacy test, was introduced on September 27, 2021, by MMM's Scotch-Brite brand and Phylagen, a San Francisco-based biotech company.
• Stock is trading far below its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is relatively volatile, with a 52-week range of USD 156.13 to USD 208.95.
• MMM's stock price has declined 13.05% and 10.36% in the past three and six months, respectively.

Technical Price Chart (as of October 13, 2021). Analysis by Kalkine

Conclusion: Considering the stocks' volatility, leveraged balance sheet, current trading levels, and technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 176.37, up 0.48% as of October 13, 2021, 11:26 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.