3M $MMM is a dividend aristocrat that has been paying for over 100 years consecutively with increasing dividends for the past 60 years. It is a component of the Dow Jones Industrial Average $DJ30 . The stock is currently down over 60%. Is it time to buy?
The main reason why the stock is down is because of all the lawsuits on them. They recently settled the lawsuits on Forever Chemicals for $10-$12.5 billion which they are going to pay over 12 years. There are other ongoing lawsuits such as the earplug one. These lawsuits will lower the cash flow of the company.
Besides, 3M has been taking a lot of debt in recent years to buy back shares and pay dividends. How likely are they going to sustain the dividends if they have a heavy settlement?
There are also macroheadwinds such as a possible recession, increased inventory, and a stronger dollar.
What is the intrinsic value of MMM after all of this? And is it time to buy?