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 gets an excellent profitability rating and is at the same time showing great financial health properties. BMI is valued quite expensive, but it does show an excellent growth. These ratings would make BMI suitable for growth and 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.
Each year in the past 5 years BMI has been profitable.
BMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMI has a better Return On Assets (14.92%) than 93.60% of its industry peers.
BMI has a Return On Equity of 20.92%. This is amongst the best in the industry. BMI outperforms 90.40% of its industry peers.
With an excellent Return On Invested Capital value of 16.99%, BMI belongs to the best of the industry, outperforming 93.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 9.16%.
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
BMI's Profit Margin of 15.74% is amongst the best of the industry. BMI outperforms 95.20% of its industry peers.
In the last couple of years the Profit Margin of BMI has grown nicely.
With an excellent Operating Margin value of 20.03%, BMI belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
In the last couple of years the Operating Margin of BMI has grown nicely.
With a decent Gross Margin value of 40.76%, BMI is doing good in the industry, outperforming 71.20% of the companies in the same industry.
BMI's Gross Margin has been stable in the last couple of years.
| 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
BMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BMI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMI has more shares outstanding
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.
2.2 Solvency
BMI has an Altman-Z score of 19.12. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
BMI has a better Altman-Z score (19.12) 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 | 19.12 |
ROIC/WACC1.79
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.92 indicates that BMI has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.92, BMI is doing good in the industry, outperforming 62.40% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that BMI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.86, BMI perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
BMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.84%, which is quite impressive.
Measured over the past years, BMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.16% on average per year.
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
BMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.25% yearly.
BMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.34% yearly.
EPS Next Y18.35%
EPS Next 2Y15.09%
EPS Next 3Y12.81%
EPS Next 5Y13.25%
Revenue Next Year12.84%
Revenue Next 2Y10.4%
Revenue Next 3Y9.09%
Revenue Next 5Y8.34%
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.
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
BMI is valuated quite expensively with a Price/Earnings ratio of 52.47.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.18, BMI is valued quite expensively.
The Price/Forward Earnings ratio is 42.51, 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 35.34, BMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.47 | ||
| Fwd PE | 42.51 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.7 | ||
| EV/EBITDA | 33.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BMI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BMI may justify a higher PE ratio.
A more expensive valuation may be justified as BMI's earnings are expected to grow with 12.81% in the coming years.
PEG (NY)2.86
PEG (5Y)2.48
EPS Next 2Y15.09%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, BMI is not a good candidate for dividend investing.
BMI's Dividend Yield is rather good when compared to the industry average which is at 1.84. BMI pays more dividend than 83.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
28.26% 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.
DP28.26%
EPS Next 2Y15.09%
EPS Next 3Y12.81%
NYSE:BMI (7/16/2025, 10:06:48 AM)
238.21
+0.53 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change0.89%
Market Cap7.02B
Analysts72.86
Price Target234.06 (-1.74%)
Short Float %6.93%
Short Ratio9.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)1.72%
PT rev (3m)1.15%
EPS NQ rev (1m)1.74%
EPS NQ rev (3m)6.56%
EPS NY rev (1m)1.86%
EPS NY rev (3m)7.75%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.47 | ||
| Fwd PE | 42.51 | ||
| P/S | 8.23 | ||
| P/FCF | 45.7 | ||
| P/OCF | 42.11 | ||
| P/B | 10.93 | ||
| P/tB | 25.14 | ||
| EV/EBITDA | 33.79 |
EPS(TTM)4.54
EY1.91%
EPS(NY)5.6
Fwd EY2.35%
FCF(TTM)5.21
FCFY2.19%
OCF(TTM)5.66
OCFY2.37%
SpS28.95
BVpS21.79
TBVpS9.48
PEG (NY)2.86
PEG (5Y)2.48
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 | 19.12 |
F-Score6
WACC9.52%
ROIC/WACC1.79
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 Y18.35%
EPS Next 2Y15.09%
EPS Next 3Y12.81%
EPS Next 5Y13.25%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
Revenue Next Year12.84%
Revenue Next 2Y10.4%
Revenue Next 3Y9.09%
Revenue Next 5Y8.34%
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%