3M Receives Rejection in U.S. Court Over ‘Forever Chemicals’ Class Action
November 30, 2023
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3M ($NYSE:MMM), the global technology and manufacturing company, has recently suffered a setback in the U.S. Courts. A large-scale class action was dismissed as the court ruled that it failed to provide sufficient evidence that the company had caused harm by releasing ‘forever chemicals’ into the environment. The ruling provides a legal setback for those attempting to hold 3M accountable for the environmental damage it may have caused, and is yet another example of how difficult it is to hold large corporations to account for their actions. Nonetheless, those who are concerned about 3M’s role in polluting the environment have not been deterred and are continuing their efforts to hold the company responsible.
Market Price
On Tuesday, 3M COMPANY, a multinational conglomerate based in Minnesota, received a rejection from a U.S. court in a class action lawsuit alleging the company was responsible for the presence of “forever chemicals” in groundwater, rivers, and drinking water. The lawsuit was filed by citizens of Minnesota against 3M and several other chemical companies. Despite the court’s ruling, 3M’s stock opened at $96.9 and closed at $98.5, up by 1.5% from last closing price of $97.1.
This could indicate investors do not seem to be deterred by the lawsuit’s outcome. The company is currently conducting studies to further understand the environmental impact of its products and is taking steps to reduce use of certain chemicals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 3m Company. More…
| Total Revenues | Net Income | Net Margin |
| 32.75k | -7.4k | -22.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 3m Company. More…
| Operations | Investing | Financing |
| 6.62k | -1.29k | -3.54k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 3m Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 49.62k | 44.89k | 8.46 |
Key Ratios Snapshot
Some of the financial key ratios for 3m Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | -10.9% | -28.7% |
| FCF Margin | ROE | ROA |
| 14.8% | -94.3% | -11.8% |
Analysis
At GoodWhale, we recently conducted an analysis of 3M COMPANY‘s wellbeing. According to our Star Chart, 3M COMPANY is strong in dividend and profitability, but weak in asset and growth. 3M COMPANY has a high health score of 7/10, indicating that the company is capable to pay off debt and fund future operations. We classified 3M COMPANY as a ‘cow’, which is a type of company that we conclude has the track record of paying out consistent and sustainable dividends. As a result, we believe investors who are looking for consistent and sustainable dividends may find 3M COMPANY to be an attractive option. More…
Peers
3M’s position as a market leader is under threat from a number of competitors. These include Honeywell International Inc, Illinois Tool Works Inc, and Eaton Corp PLC. All of these companies are competing for market share in the manufacturing sector. 3M will need to continue to innovate and produce high-quality products in order to stay ahead of its competitors.
– Honeywell International Inc ($NASDAQ:HON)
Honeywell International Inc. is an American multinational conglomerate company that produces commercial and consumer products, engineering services and aerospace systems. It operates in four segments: Aerospace, Building Technologies, Performance Materials & Technologies, and Safety & Productivity Solutions. The company was founded in 1906 and is headquartered in Morristown, New Jersey.
Honeywell’s market cap is $121.18 billion as of 2022 and its return on equity is 24.52%. The company’s strong financial performance is due in part to its diversified product portfolio and global reach. Honeywell’s products are used in a variety of industries, including aerospace, building technologies, performance materials, and safety and productivity solutions. The company has a presence in nearly 100 countries and serves customers in a wide range of markets.
– Illinois Tool Works Inc ($NYSE:ITW)
Illinois Tool Works Inc. is a diversified industrial company that specializes in a range of product businesses. The company operates in a number of markets, including automotive, food and beverage, construction, and energy. Illinois Tool Works has a market capitalization of $59.87 billion as of 2022 and a return on equity of 63.86%. The company’s products are used in a variety of applications, and it has a strong presence in a number of industries. Illinois Tool Works is a well-diversified company with a strong financial position.
– Eaton Corp PLC ($NYSE:ETN)
Eaton Corp PLC is a power management company with a market cap of 56.02B as of 2022. The company has a Return on Equity of 12.16%. Eaton Corp PLC provides power management solutions that help customers effectively manage electrical, hydraulic, and mechanical power. The company operates in four segments: Electrical Products, Industrial Automation, Hydraulics, and Aerospace.
Summary
3M Company is a diversified technology company with a long history of providing products and services to customers in a variety of industries. Analysts have noted 3M’s ability to generate substantial free cash flow, its diversified portfolio of products and services, and its commitment to innovation as primary drivers of this positive performance.
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