5 minutes value investing-3M 2020 annual report

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