John Stephenson3M Co.MMMHOLDOct 29, 2014

3M's 2024 outlook reflects another year of macroeconomic uncertainty, with lower top-line growth than consensus anticipated. The company's consumer outlook is cautionary, as it expects constrained spending again this year, which may be conservative. 3M's 4Q adjusted EPS of $2.42 was better than expected, supported by a lower tax rate, slightly higher sales growth and benefits from restructuring actions. Organic sales fell 1.4% with a surprise gain in Transportation and Electronics (up 2.7%), but not enough to offset declines in other segments. Adjusted operating margin expanded 180 bps to 20.9%, driven by a 380-bp jump in Transportation and Electronics. A planned first half Health Care spinoff is on track, with cash likely to be used for debt reduction and legal payments. Considering the balance sheet and free cash flow, we would not have serious concerns on the dividend, and consensus still calls for some EPS growth this year ($9.21 to $9.66). But, considering guidance, investors might just sit on the sidelines for a while, despite the low valuation (9X). With other stocks growing faster and doing better fundamentally, we would not see it as overly attractive yet. Negative momentum can continue at times. Its 52-week low is $85-ish. We would be more interested at $90.
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They report Tuesday. They've put the lawsuits behind them. Now, they need to develop some new products that turn into blockbusters, like they used to.

Is still dealing with class-action lawsuits. Doesn't see the end of the tunnel. Is a complex problem involving many US states.

Would not recommend buying at this time. Involvement in lawsuits a concern for investors. Unsure on liabilities associated in lawsuits. Wait to see outcome. Strong R&D pipeline, so could be investment grade in the future, but not right now. Dividend yield reflecting risky nature of business. 

Has suffered several lawsuits. Are liable for billions in a major chemical lawsuit, which resulted in a severely negative quarter. Continues to suffer lawsuits. 3M is in disarray and yet is paying a large dividend (because the stock has fallen). The payout ratio is around 60% (not entirely sure), a little high and uncomfortable.

A discretionary that yields 6.34%, but shares have fallen since early 2021. Before he would buy this, but he sees a sell signal on the S&P 500 (the last time happened in March 2020). He might buy 3M with a stop, but not enthusiastic.

Long term - may be a good investment, but short term is a concern.
~6% dividend too high.
Would not recommend investing.
Legal/liability issues with product ingredients. 
Hearing loss product under investigation.

Are cleaning up their class-action lawsuits. Stock is cheap.

Troublesome. Lawsuits on carcinogens and noise protection products, a $25B hit. Struggles on margins and growth.

Look at this once they settled their ongoing lawsuits.

An interesting time to buy this, given the earplug lawsuit and this cloud should start to lift. They've paid a dividend for 100 years, raising it for 64 years, paying 5.8%. They are innovative, like robots they've sold to BMW. Dirt cheap. Buy.

Shares have climbed Friday, though have lagged recently, because of hopes that they will settle a pollution lawsuit. However, today the market read that progress negatively, and shares sank.

Bad--the two lawsuits. Don't own this.

Wait out the lawsuit as you collect the 5.8% dividend. Be patient.

Doesn't see how they can get out of this earplug lawsuit (by US Vets). This suit won't end anytime soon. Also sued over groundwater desecration.