Once-stable 3M faces uncertain future amid lawsuits, high debt and underinvestment
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3M was once seen as a blue chip stock, but shares have lost 65% since 2018 due to underinvestment in R&D and rising debt levels.
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The company recently settled two major lawsuits - one regarding water contamination and another regarding defective military ear plugs - totaling over $16 billion.
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Additional PFAS litigation could continue for years, creating uncertainty around long-term liabilities.
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To raise cash for legal settlements, 3M plans to spin off part of its healthcare business and sell $1 billion in stock.
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While 3M still generates substantial cash flow, its future prospects look weaker due to high debt, potential dividend cuts, and less money to invest in new products.