“Everyone loves a turnaround story… but not every turnaround turns. Let’s talk 3M — and why I think this could still be a value trap in disguise.”
💥 Key points:
GAAP EPS? Only $1.34, crushed by $2.2 billion in legal costs. And those lawsuits — PFAS, earplugs, environmental — they’re not over yet.
Negative operating cash flow last quarter: about –$1 billion. That’s not a small blip — it’s real cash out the door.
Organic growth? Barely 1.5%. In a world where industrial demand is cooling, that’s anemic.
Even with adjusted numbers looking better, those adjustments keep piling up — and investors are losing patience.
💸 Valuation trap:
Sure, the P/E looks low… but low P/E stocks can stay low when risk is structural. If more settlements hit or margins flatten, MMM could easily slip back toward $90 or even $80.
😬 Closing line:
“Don’t get lured in by the dividend or the ‘cheap’ multiple. Until 3M proves it can grow without courtrooms eating its profits, this might be less of a rebound — and more of a retirement portfolio regret.”
