3M (NYSE:MMM) has been hit hard by growing concerns over the company’s potentially large financial liabilities tied to PFAS (per- and polyfluoroalkyl substances) contamination and allegedly defective military earplugs. It certainly also hasn’t helped that the company’s revenue and margin leverage performances have been lackluster at best, all contributing to a nearly 25% decline in the stock price since my last update on the company – far worse than the basically flat performance of the broader multi-industrial sector.
I do still see some value in these shares, but for reasons I’ll discuss in greater detail, I don’t have as much confidence in management as I'd like, and it’s harder to argue for owning these shares given the sentiment headwinds from the legal liability issues.
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