Sunday, August 17, 2014

Is 3M Company a Buy?

It's no secret that 3M Company  is a very well run company, but is it a great investment right now? Aside from some weaker conditions in Latin America, 3M Company delivered on almost every front in the quarter. Moreover, the commentary around the results made for good news for the industrial sector, and specifically, for Pall Corporation  . Were the earnings good enough to suggest that 3M Company can go higher in 2014?

3M Company's quality of earnings doesn't come cheap
On an absolute and relative basis, 3M Company doesn't look like a particularly cheap stock. A quick look at its valuation versus a collection of its industrial peers indicates that the stock has a lot of good news already priced in.

ITW EV to Free Cash Flow (TTM) Chart

On the other hand, good news comes from well run companies, and 3M Company's latest results were very solid. A few highlights include:


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