Taking A Deep Dive Into 3M’s Capital Allocation


  • We briefly discuss the importance of capital allocation decisions by executive officers.
  • We take a close look at 3M’s capital allocations over the past 10 years.
  • We highlight those that we believe have made sense for long-term shareholders, versus those that are more questionable.
  • Our review is rather mixed overall, and investors are justified in keeping a close eye on how the company allocates excess cash going forward.

Prague, Czech republic - May 22, 2017: 3M company logo on headquarters building


The importance of capital allocation

A corporate management team is responsible for ensuring the long-term success of a company on behalf of its shareholders. To this end, much of their attention is focused on the more apparent aspects of operating a

3M capital allocation analysis

3M capital allocation analysis (Refinitiv)

R&D, SG&A, Capex as a % of sales. Breakdown of sales change. Margins and returns

R&D, SG&A, Capex as a % of sales. Breakdown of sales change. Margins and returns (Refinitiv, 10-Ks)

Dividend profile

Dividend profile 2003-2022 (Refinitiv)

Stock buybacks & issuance

Stock buybacks & issuance (10-Ks)

Stock buybacks & issuance

Stock buybacks & issuance (10-Ks)

Disclosure: I/we have a beneficial long position in the shares of MMM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The content of this article is for informational purpose only. It constitutes neither a solicitation or an offer or recommendation to buy or sell any investment instruments or to engage in any other transactions.

The information provided in this article is provided “as is” and “as available” without warranty of any kind. Your use of this information is entirely at your own risk. Although the information in this article is obtained or compiled from sources we believe to be reliable, we cannot and do not guarantee or make any representation or warranty, either expressed or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data made available in this article. In no event shall Oyat be liable for any decision made or action or inaction taken in reliance on any information or data in this article or on any linked documents.

All trading in financial instruments entails risk. Investors should evaluate their intended investments in light of their knowledge and experience, financial positions and investment objectives – or speak to a financial adviser – before making any investment decisions. Past performance is not indicative of future results.

Leave a Reply

Your email address will not be published. Required fields are marked *