l Welcome to 5 Minutes Value investing.
l Today we view 3M 2020 annual report.
l 3M was founded in 1902, 118 years ago (as Minnesota Mining and Manufacturing Company)
l The CEO of 3M is Michael F. Roman.
主體1
l 3M employed 95,000 people, with 40,000 in the United States and 55,000 internationally.
l 3M’s biggest segment is safety and industrial segment.
l Within the safety and industrial segment, personal safety segment represent about 38% of revenue in 2020, but in 2019, that very same segment accounted for just 30% and the reason is that this is a segment 3M makes a whole bunch of face masks. 2020 is an unusual year that mask sales went through the roof.
l Their second largest segments are the Transportation and electronics segment.
l Their third largest segment are the health care segment which represented about 24% of 3M’s total revenue.
l 3M’s healthcare segment is highly diversified.
l That’s going to be a consistent theme throughout everything that this company does.
l The largest contributor to revenue within this segment is in their medical solutions business that represented 57% of this segment’s total revenue.
l What this segment does is that they make products for doctor office and dentists.
l They also have some food safety testing products.
l Their final segment is the consumer segment and it accounted for about 16% of their total revenue.
l Within this segment we can see that home improvement is a very large contributor to this.
l They have a lot of products in all the major retailers out there, including Lowe’s home depot, Walmart.
l They make a lot of paint supplies and a tons of tapes.
主體2
l 3M’s revenue has gradually shifted higher, but frankly, it has been a very slow rise.
l The earnings per share is growing at a more rapid pace than revenue is.
l Why is the EPS growing faster than the revenue?
l The first reason is profit margins.
l If we have flat revenue but profit margins improve, earnings per share will get high.
l One of the advantages of 3M is that their profit margins are some of the best in the industry.
l Another strength of 3M is that they have very solid research and development investments every year which should continue to push many of their brands forward.
l Another piece to this puzzle is that their stock buybacks.
l Since 2005, they have been persistently decreasing the amount of shares out there.
分析
l Let’s view the anlaysis.
1.股價Stock Price on June 4th 206.05 -
2.本益比P/E ratio 21.09 >15 X
3. 股價淨值比P/B ratio 8.64 >1.5 X
4.股東權益報酬率ROE 46.02% >10% O
5. 大股東持股比例Insider Ownership 0.12% <20% X
6.市值 Market Capitalization 118,000,000,000 > 10,000,000,000. O
7.在產業中排名前Ranks top 30% in the industry O
8.負債比Debt ratio 70.00% >50% X
9.流動資產/流動負債Current ratio 183.00% <200% X
10.20年連續發放股息Paid dividends in 20 consecutive years O - O
11.過去十年每年都獲利Made profit each year in the past 10 years O - O
12.營業現金流/稅後淨利OCF/NI 141.33% >80% O
13.過去十年EPS成長EPS growth in past 10 years 44.89% >30% O
14.每股自由現金流FCF per share 10 >0 O
