$3M (MMM.US)$It is an American company that was listed in 19...
$3M(MMM.US$It is an American company that was listed in 1946. Since 2002, the stock price has risen from 117 to 119.3 US dollars. Considering that 1 split 2 was carried out once during the period, the average return was 3.6%, which is not good. The top three main businesses are safety and industrial products, transportation and electronics products, and health care. The main markets are mainly the United States, Europe, and the Asia-Pacific region, and globalization is quite thorough.
The gross margin has slowly declined from 49.5% to 46.9% over the past 5 years, which is not a big change; the return on net assets has always fluctuated above 42%. These two indicators are very attractive.
Revenue has basically been around 32 billion in the past 5 years, and grew rapidly to 35.4 billion in 2021; operating profit declined from 7.2 billion to 6.1 billion and then rebounded back to 7.7 billion; net profit fluctuated around 5 billion yuan, reaching 5.9 billion in 2021.
In the first two quarters of 2022, revenue fell 1.5% and operating profit fell 60%, mainly due to sales and management expenses surging 81% and net profit falling 56% in the second quarter. The second quarter mainly relied on non-operating income to avoid losses.
The income statement shows that interest expenses in 2021 accounted for 6% of operating profit, which is not a heavy burden.
The balance ratio rose from 69% to 77% over the past 5 years, then fell back to 70%.
Inventory has increased rapidly in recent times, with an increase of 750 million in 2021 and an increase of 660 million in the first two quarters of 2022. However, the overall scale is quite reasonable compared to revenue.
Goodwill is $13.064 billion, accounting for 95% of net assets, accounting for a relatively high proportion.
Long-term loans of $14.019 billion, accounting for 101% of net assets, and the leverage ratio is not low.
Treasury stocks have actually accumulated to 30.781 billion dollars, which is more than 2 times the net assets and has not been written off.
Net operating over the past five years has been significantly higher than net investment, with the exception of 2019, and shareholders' surpluses are high.
The current PE ratio is 11.8, and the PE ratio is TTM 16.6. Due to the high borrowing rate, although the gross margin and return on net assets are very high, it is not very attractive in the short term in the context of interest rate hikes, so close observation can be maintained.
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