BADGER METER INC (BMI) Stock Fundamental Analysis
NYSE:BMI - New York Stock Exchange, Inc. - US0565251081 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BMI. BMI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. BMI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BMI is valued quite expensively, but it does show have an excellent growth rating. These ratings would make BMI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year BMI was profitable.
BMI had a positive operating cash flow in the past year.
In the past 5 years BMI has always been profitable.
Each year in the past 5 years BMI had a positive operating cash flow.
1.2 Ratios
BMI has a Return On Assets of 14.92%. This is amongst the best in the industry. BMI outperforms 93.60% of its industry peers.
BMI has a better Return On Equity (20.92%) than 90.40% of its industry peers.
The Return On Invested Capital of BMI (16.99%) is better than 93.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 9.35%.
The last Return On Invested Capital (16.99%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.92% | ||
| ROE | 20.92% | ||
| ROIC | 16.99% |
ROA(3y)13.08%
ROA(5y)12.25%
ROE(3y)17.86%
ROE(5y)16.46%
ROIC(3y)15.23%
ROIC(5y)14.23%
1.3 Margins
With an excellent Profit Margin value of 15.74%, BMI belongs to the best of the industry, outperforming 94.40% of the companies in the same industry.
In the last couple of years the Profit Margin of BMI has grown nicely.
BMI has a Operating Margin of 20.03%. This is amongst the best in the industry. BMI outperforms 98.40% of its industry peers.
BMI's Operating Margin has improved in the last couple of years.
The Gross Margin of BMI (40.76%) is better than 71.20% of its industry peers.
In the last couple of years the Gross Margin of BMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.03% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.76% |
OM growth 3Y7.03%
OM growth 5Y5.49%
PM growth 3Y7.84%
PM growth 5Y6.34%
GM growth 3Y-0.7%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BMI is creating value.
Compared to 1 year ago, BMI has more shares outstanding
BMI has more shares outstanding than it did 5 years ago.
BMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 19.45 indicates that BMI is not in any danger for bankruptcy at the moment.
The Altman-Z score of BMI (19.45) is better than 96.00% of its industry peers.
There is no outstanding debt for BMI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.45 |
ROIC/WACC1.87
WACC9.1%
2.3 Liquidity
BMI has a Current Ratio of 2.92. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.92, BMI is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
BMI has a Quick Ratio of 1.86. This is a normal value and indicates that BMI is financially healthy and should not expect problems in meeting its short term obligations.
BMI has a Quick ratio (1.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.84% over the past year.
BMI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.16% yearly.
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.08%.
BMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.25% yearly.
EPS 1Y (TTM)30.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%31.31%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
EPS Next Y16.19%
EPS Next 2Y14.27%
EPS Next 3Y14%
EPS Next 5Y13.25%
Revenue Next Year12.31%
Revenue Next 2Y10.24%
Revenue Next 3Y9.89%
Revenue Next 5Y9.34%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BMI is valuated quite expensively with a Price/Earnings ratio of 53.22.
BMI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (26.32), we can say BMI is valued expensively.
The Price/Forward Earnings ratio is 43.75, which means the current valuation is very expensive for BMI.
BMI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BMI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.22 | ||
| Fwd PE | 43.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMI is on the same level as its industry peers.
BMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.36 | ||
| EV/EBITDA | 34.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BMI may justify a higher PE ratio.
BMI's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.29
PEG (5Y)2.52
EPS Next 2Y14.27%
EPS Next 3Y14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, BMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, BMI pays a better dividend. On top of this BMI pays more dividend than 83.20% of the companies listed in the same industry.
With a Dividend Yield of 0.56, BMI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of BMI grows each year by 13.80%, which is quite nice.
BMI has paid a dividend for at least 10 years, which is a reliable track record.
BMI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.8%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
28.26% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
BMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.26%
EPS Next 2Y14.27%
EPS Next 3Y14%
241.64
-0.92 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change4.57%
Ins Owners0.51%
Ins Owner Change0.89%
Market Cap7.12B
Analysts73.85
Price Target230.1 (-4.78%)
Short Float %7.07%
Short Ratio7.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP28.26%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.98%
Min EPS beat(2)-5.96%
Max EPS beat(2)21.92%
EPS beat(4)2
Avg EPS beat(4)5.08%
Min EPS beat(4)-5.96%
Max EPS beat(4)21.92%
EPS beat(8)6
Avg EPS beat(8)8.06%
EPS beat(12)9
Avg EPS beat(12)7.92%
EPS beat(16)12
Avg EPS beat(16)7.88%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)5.44%
Revenue beat(8)5
Avg Revenue beat(8)2.81%
Revenue beat(12)9
Avg Revenue beat(12)3.45%
Revenue beat(16)12
Avg Revenue beat(16)3.05%
PT rev (1m)1.28%
PT rev (3m)1.23%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)5.39%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.22 | ||
| Fwd PE | 43.75 | ||
| P/S | 8.35 | ||
| P/FCF | 46.36 | ||
| P/OCF | 42.71 | ||
| P/B | 11.09 | ||
| P/tB | 25.5 | ||
| EV/EBITDA | 34.5 |
EPS(TTM)4.54
EY1.88%
EPS(NY)5.52
Fwd EY2.29%
FCF(TTM)5.21
FCFY2.16%
OCF(TTM)5.66
OCFY2.34%
SpS28.95
BVpS21.79
TBVpS9.48
PEG (NY)3.29
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.92% | ||
| ROE | 20.92% | ||
| ROCE | 22.51% | ||
| ROIC | 16.99% | ||
| ROICexc | 20.55% | ||
| ROICexgc | 48.72% | ||
| OM | 20.03% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.76% | ||
| FCFM | 18.01% |
ROA(3y)13.08%
ROA(5y)12.25%
ROE(3y)17.86%
ROE(5y)16.46%
ROIC(3y)15.23%
ROIC(5y)14.23%
ROICexc(3y)23.61%
ROICexc(5y)20.43%
ROICexgc(3y)41.01%
ROICexgc(5y)36.17%
ROCE(3y)20.17%
ROCE(5y)18.85%
ROICexcg growth 3Y15.78%
ROICexcg growth 5Y16.08%
ROICexc growth 3Y21.65%
ROICexc growth 5Y15.12%
OM growth 3Y7.03%
OM growth 5Y5.49%
PM growth 3Y7.84%
PM growth 5Y6.34%
GM growth 3Y-0.7%
GM growth 5Y0.68%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.39% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.97% | ||
| Profit Quality | 114.37% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 19.45 |
F-Score6
WACC9.1%
ROIC/WACC1.87
Cap/Depr(3y)34.99%
Cap/Depr(5y)33.03%
Cap/Sales(3y)1.43%
Cap/Sales(5y)1.55%
Profit Quality(3y)111.64%
Profit Quality(5y)126.18%
High Growth Momentum
Growth
EPS 1Y (TTM)30.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%31.31%
EPS Next Y16.19%
EPS Next 2Y14.27%
EPS Next 3Y14%
EPS Next 5Y13.25%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
Revenue Next Year12.31%
Revenue Next 2Y10.24%
Revenue Next 3Y9.89%
Revenue Next 5Y9.34%
EBIT growth 1Y31.8%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year40.29%
EBIT Next 3Y20.1%
EBIT Next 5Y17.71%
FCF growth 1Y86.84%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y82.73%
OCF growth 3Y21%
OCF growth 5Y13.95%