3M (MMM): Assessing Valuation After Joining JOINT3 Semiconductor Consortium

3M (MMM) just made waves as one of 27 industry giants joining the JOINT3 consortium, a collaborative effort dedicated to developing panel-level organic interposer technology for cutting-edge semiconductor packaging. In plain terms, this is a big step into an evolving growth area where the demand for faster, more efficient data movement is only getting stronger. For investors pondering whether this move changes the game for 3M, the question is simple: is this just another partnership, or could it be a meaningful growth catalyst for a company best known for industrial materials?

Looking at the bigger picture, 3M’s share price has gained momentum this year, rising 23% in the past twelve months. That’s helped by both recent news and an ongoing push into technology segments that sit squarely in the path of future demand, like semiconductors. Nevertheless, the ride has not been smooth, as investors have dealt with stretches of sideways movement and some skepticism about 3M’s ability to overcome broader macro concerns.

After a year of strong gains and a bold step into next-gen semiconductors, is 3M still undervalued, or is the stock’s price already factoring in future growth?

Most Popular Narrative: 3.6% Undervalued

According to leading market narratives, 3M is viewed as modestly undervalued with a fair value estimate that is higher than its current share price.

The acceleration in new product launches (up 70% YoY; targeting 215 for the year) and a 9% rise in five-year innovation sales, which are expected to surpass 15% growth for the year, positions 3M to capitalize on rising global needs for health, safety, digitalization, and sustainably-driven products. These developments could potentially support both future revenue growth and margin expansion.

The path to this valuation is packed with bold assumptions, dramatic shifts in profitability, and eye-catching projections for future growth. Which performance driver is powering 3M’s next leap? Uncover the key forecast that has analysts placing a premium on these shares, and see what future milestones could make or break this under-the-radar opportunity.

Result: Fair Value of $161.15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent litigation and slow progress on operational improvements could quickly derail optimism around 3M's growth and margin expansion story.

Find out about the key risks to this 3M narrative.

Another View: Market Comparison Paints a Different Picture

While the first approach signals undervaluation, comparing 3M’s share price to industry averages suggests the stock is actually priced higher than many similar companies. Can both stories be true, or does one tell more?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding 3M to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own 3M Narrative

If you want to dig deeper or draw your own conclusions, you can craft a personalized narrative based on the latest data and insights. Do it your way

A great starting point for your 3M research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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