BADGER METER INC (BMI) Stock Fundamental Analysis
USA - NYSE:BMI - US0565251081 - Common Stock
179.76 USD
+1.96 (+1.1%)
179.76 USD
0 (0%)
Taking everything into account, BMI scores 7 out of 10 in our fundamental rating. BMI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making BMI a very profitable company, without any liquidiy or solvency issues. BMI is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make BMI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
BMI had positive earnings in the past year.
BMI had a positive operating cash flow in the past year.
BMI had positive earnings in each of the past 5 years.
BMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMI has a better Return On Assets (14.50%) than 94.40% of its industry peers.
BMI has a better Return On Equity (20.03%) than 89.60% of its industry peers.
BMI's Return On Invested Capital of 16.48% is amongst the best of the industry. BMI outperforms 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 9.48%.
The 3 year average ROIC (15.23%) for BMI is below the current ROIC(16.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 20.03% | ||
| ROIC | 16.48% |
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
BMI has a better Profit Margin (15.53%) than 93.60% of its industry peers.
BMI's Profit Margin has improved in the last couple of years.
BMI has a Operating Margin of 19.93%. This is amongst the best in the industry. BMI outperforms 97.60% of its industry peers.
BMI's Operating Margin has improved in the last couple of years.
The Gross Margin of BMI (41.18%) is better than 69.60% 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 | 19.93% | ||
| PM (TTM) | 15.53% | ||
| GM | 41.18% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMI is creating some value.
Compared to 1 year ago, BMI has more shares outstanding
Compared to 5 years ago, BMI has more shares outstanding
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 14.99 indicates that BMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.99, BMI belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
BMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.99 |
ROIC/WACC1.77
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.23 indicates that BMI has no problem at all paying its short term obligations.
BMI has a Current ratio of 3.23. This is in the better half of the industry: BMI outperforms 68.00% of its industry peers.
BMI has a Quick Ratio of 2.17. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI has a Quick ratio of 2.17. This is in the better half of the industry: BMI outperforms 63.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
BMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.84%, which is quite good.
The Earnings Per Share has been growing by 21.16% on average over the past years. This is a very strong growth
The Revenue has grown by 11.82% in the past year. This is quite good.
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)19.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%4.46%
Revenue 1Y (TTM)11.82%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%9.89%
3.2 Future
BMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.18% yearly.
Based on estimates for the next years, BMI will show a quite strong growth in Revenue. The Revenue will grow by 9.30% on average per year.
EPS Next Y14.48%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
EPS Next 5Y12.18%
Revenue Next Year12.41%
Revenue Next 2Y10.45%
Revenue Next 3Y8.27%
Revenue Next 5Y9.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.16, which means the current valuation is very expensive for BMI.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. BMI is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.16, the valuation of BMI can be described as expensive.
BMI's Price/Forward Earnings ratio is in line with the industry average.
BMI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 33.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
69.60% of the companies in the same industry are more expensive than BMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 24.48 |
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.
PEG (NY)2.71
PEG (5Y)1.85
EPS Next 2Y13.21%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, BMI is not a good candidate for dividend investing.
The stock price of BMI dropped by -26.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.39, BMI pays a better dividend. On top of this BMI pays more dividend than 86.40% of the companies listed in the same industry.
With a Dividend Yield of 0.88, BMI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of BMI is nicely growing with an annual growth rate of 13.80%!
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
29.46% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
The dividend of BMI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.46%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
179.76
+1.96 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.18%
Inst Owner Change-0.78%
Ins Owners0.51%
Ins Owner Change0.29%
Market Cap5.30B
Analysts72.86
Price Target237.24 (31.98%)
Short Float %6.1%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP29.46%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.16%
Min EPS beat(2)-7.6%
Max EPS beat(2)21.92%
EPS beat(4)1
Avg EPS beat(4)1.17%
Min EPS beat(4)-7.6%
Max EPS beat(4)21.92%
EPS beat(8)5
Avg EPS beat(8)5.19%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)11
Avg EPS beat(16)7.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.46%
Revenue beat(8)4
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)3.2%
Revenue beat(16)11
Avg Revenue beat(16)2.85%
PT rev (1m)-0.61%
PT rev (3m)3.1%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-5.65%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 33.16 | ||
| P/S | 6.06 | ||
| P/FCF | 33.1 | ||
| P/OCF | 30.31 | ||
| P/B | 7.82 | ||
| P/tB | 16.78 | ||
| EV/EBITDA | 24.48 |
EPS(TTM)4.59
EY2.55%
EPS(NY)5.42
Fwd EY3.02%
FCF(TTM)5.43
FCFY3.02%
OCF(TTM)5.93
OCFY3.3%
SpS29.65
BVpS22.99
TBVpS10.72
PEG (NY)2.71
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 20.03% | ||
| ROCE | 21.83% | ||
| ROIC | 16.48% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 48.56% | ||
| OM | 19.93% | ||
| PM (TTM) | 15.53% | ||
| GM | 41.18% | ||
| FCFM | 18.32% |
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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 44.34% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.31% | ||
| Profit Quality | 117.92% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 14.99 |
F-Score6
WACC9.31%
ROIC/WACC1.77
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)19.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%4.46%
EPS Next Y14.48%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
EPS Next 5Y12.18%
Revenue 1Y (TTM)11.82%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%9.89%
Revenue Next Year12.41%
Revenue Next 2Y10.45%
Revenue Next 3Y8.27%
Revenue Next 5Y9.3%
EBIT growth 1Y22.98%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year38.5%
EBIT Next 3Y16.14%
EBIT Next 5Y15.62%
FCF growth 1Y90.04%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y85.38%
OCF growth 3Y21%
OCF growth 5Y13.95%