Section 1: Company Overview and Fundamentals

1.1 Company Overview:

3M Company (NYSE: MMM) is a diversified global manufacturer, technology innovator, and marketer of a variety of products and services. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software, and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 9.19% in the last three months as well as by 25.80% in the last nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 154.66 and 52-week low price of USD 100.16. The price is currently closer to its important support range of USD 100-USD 105.
• The price is currently trading below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 47.26, with the expectation of a possible near term reversal in the trend.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

MMM's profit margins in Q1FY23 were exceptional when compared to the industry median. MMM has surpassed the industry median in every segment, demonstrating efficient use of resources and operational performance. The supplementary graph shows that MMM, despite the challenging macroeconomic conditions, MMM maintained an above industry median current ratio.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~31.03% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc. and State Street Global Advisors (US) are the biggest shareholders, holding the maximum stake in the company at ~8.45% and ~6.05%, respectively.

1.5 Consistent dividend payments history since 1973:

3M has paid dividends on a quarterly basis since 1973. For the first quarter of 2023, the 3M Board of Directors announced a dividend of USD 1.50 per share on the company's common stock. Shareholders with records as of the close of business on February 17, 2023, will receive the dividend on March 12, 2023. For more than a century, 3M has continued to distribute dividend payments to its stockholders.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 25, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

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