3M

Analysis of 3M share price

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The share of the American company 3M attracts many investors around the world and presents a high liquidity as well as a sometimes significant volatility. But before you start speculating on this equity, we suggest that you get acquainted with the various information about the company such as details of its activities, its main competitors or its recent partnerships, as well as other stock market data and historical technical analysis that will help you understand how the equity is performing in the market.

Elements that can influence the price of this asset:

Analysis N°1

First, we'll monitor 3M's buyout announcements of other companies allowing it to diversify its activities.

Analysis N°2

We'll also keep an eye on the group's expansion strategy in certain segments such as the renewable energy segment which will undoubtedly bring important new sources of income in the future. This also concerns investments made by 3M in the cathode material sector in order to develop new innovative products thereby gaining even more profitability.

Analysis N°3

The group's financial recovery, which suffered greatly from the 2008 economic crisis, should also be followed with the greatest attention.

Analysis N°4

We'll also be following the evolution of increasingly strict laws and regulations regarding the environment and which may thereby influence the group's strategy, the main activity of which involves the chemical sector.

Analysis N°5

Finally, we'll also be watching the competition from this increasingly strong sector of activity.

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General presentation of 3M

The American group 3M is one of the big names in the global industrial sector which designs, manufactures and markets various types of products. We can divide its production into several major product groups according to the element of turnover they generate and this is how:

  • Industrial products including abrasive products, glues, tapes, adhesives, cleaning products, air and liquid filtration systems represent 33.5% of the total turnover of the company.
  • Safety and signage products with, among others non-slip coating products, fire protection systems and even road signage products generate 18.4% of total turnover. This group also includes display equipment and graphics systems.
  • Health products, including orthopaedic equipment, surgical and respiratory equipment, feminine hygiene products and dental care products represent 17.9% of the group's turnover.
  • Electronic and electrical products such as interconnect products, connections and even optical components represent 15.7% of the company's turnover.
  • Finally, consumable products such as adhesive tapes, self-adhesive papers, filters, projectors and even screen supports represent 14.5% of the turnover generated.

Of course it's in the United States that the 3M Company achieves the largest share of its turnover with 40.5% of total turnover. Next comes Asia-Pacific with 29.4% in turnover, Europe, the Middle East and Africa which cumulate 20.50% in turnover and finally Latin America and Canada which generate 9.6%.

Analysis of 3M share price
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The major competitors of 3M

Due to its much diversified activities and the different business sectors affected by the products it develops, 3M faces competitors from various areas of specialization so it's important to know the most dangerous. During your studies of the 3M stock, we advise that you take into account these different competing companies whose different data will need to be integrated into your fundamental analyses. Carefully monitor the results of products of these groups that compete directly with those of 3M.

Johnson & Johnson

The American group Johnson & Johnson is currently 3M's largest competitor. It has many brands of hygiene products of all types such as soaps, baby products and medical equipment which it distributes mainly on the American market but also the rest of the world.

Bayer

Next we have the pharmaceutical giant Bayer, which also develops and markets products in direct competition with those of the 3M Company. This company is one of the international leaders in pharmaceutical, biology and agrochemicals and also produces high performance materials.

Other competitors

Other companies such as Kimberley Clark, General Electric and HB can also be considered as direct 3M competitors.


The major partners of 3M

The 3M Company owes its notoriety in the industrial sector to its capacity for innovation, but also its development strategy which is based, at least in part on the signing of some strategic alliances with companies from similar or complementary activity sectors. Here's a summary of the latest alliances set up by the group.

Haribo

In 2008, 3M partnered with the Haribo confectionary brand to establish a commercial and marketing partnership. The idea was to offer Haribo sweets for any purchase of the 3M brand Post-It notes or tape. Customers of both brands could then participate in an online quiz to win other prizes such as game consoles.

Nobel Media

In 2016, 3M partnered with Nobel Media as part of a global partnership aimed at bringing the two companies together in the field of progress and innovation along with scientific and innovation research. 3M could provide Nobel Media with its scientific expertise for several years particularly by working in the fields of sustainable development or scientific education.

Signarama

More recently, in 2017, 3M also approached a signage and advertising giant, Signarama as part of a strategic partnership. Signarama has therefor obtained an exclusivity agreement for professional decoration markets and towards the DI-NOC solution, becoming one of 3M's reference partners in France.

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Frequently Asked Questions

Who are the largest private shareholders in 3M?

3M is currently owned by several large private shareholders including The Vanguard Group with 8.41%, SSgA Funds Management with 7.41%, BlackRock Fund Advisors with 2.08%, State Farm Investment Management with 1.93%, Wells Fargo Bank Minnesota with 1.93%, Massachusetts Financial Services with 1.82%, Geode Capital Management with 1.46%, Wellington Management with 1.41%, Northern Trust Investments with 1.39% and Capital Research & Management with 1.32%.

What investments does the 3M group make in R&D?

Each year, the 3M Group invests nearly 5% of its turnover in research and development and employs more than 8,100 researchers worldwide. The group's R&D work is supported by a network of laboratories based in 36 countries around the world and 3M holds over 100,000 patents worldwide. It organises its innovation strategy around 46 technological platforms.

Where to buy or trade 3M shares online?

If you want to buy 3M shares online, you can do so through the investment products of some brokers or online banks. But you can also trade directly on the share price without having to buy it, through a trading platform offering CFD contracts on the share or other derivatives.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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