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. Both the health and profitability get an excellent rating, making BMI a very profitable company, without any liquidiy or solvency issues. BMI is valued quite expensive, but it does show an excellent growth. This makes BMI very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year BMI was profitable.
In the past year BMI had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 14.92%, BMI belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
With an excellent Return On Equity value of 20.92%, BMI belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
The Return On Invested Capital of BMI (16.99%) is better than 93.60% of its industry peers.
BMI had an Average Return On Invested Capital over the past 3 years of 15.23%. This is significantly above the industry average of 9.28%.
The 3 year average ROIC (15.23%) for BMI is below the current ROIC(16.99%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 15.74%, BMI belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
BMI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.03%, BMI belongs to the top of the industry, outperforming 97.60% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BMI is creating value.
BMI has more shares outstanding than it did 1 year ago.
BMI has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 19.53 indicates that BMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.53, BMI belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
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 | 19.53 |
ROIC/WACC1.81
WACC9.4%
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.
BMI's Current ratio of 2.92 is fine compared to the rest of the industry. BMI outperforms 64.00% of its industry peers.
A Quick Ratio of 1.86 indicates that BMI should not have too much problems paying its short term obligations.
BMI has a Quick ratio of 1.86. This is comparable to the rest of the industry: BMI outperforms 59.20% of its industry peers.
| 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.
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 15.08% in the past year. This is quite good.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.
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 14.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.47% on average over the next years. This is quite good.
EPS Next Y16.19%
EPS Next 2Y14.27%
EPS Next 3Y14%
EPS Next 5Y14.94%
Revenue Next Year12.31%
Revenue Next 2Y10.24%
Revenue Next 3Y9.89%
Revenue Next 5Y10.47%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
BMI is valuated quite expensively with a Price/Earnings ratio of 53.63.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (25.82), we can say BMI is valued expensively.
Based on the Price/Forward Earnings ratio of 44.08, the valuation of BMI can be described as expensive.
BMI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BMI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.63 | ||
| Fwd PE | 44.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
The rest of the industry has a similar Price/Free Cash Flow ratio as BMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.71 | ||
| EV/EBITDA | 34.66 |
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.
BMI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BMI's earnings are expected to grow with 14.00% in the coming years.
PEG (NY)3.31
PEG (5Y)2.53
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 2.07, BMI pays a better dividend. On top of this BMI pays more dividend than 83.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BMI's dividend is way lower than the S&P500 average.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.26%
EPS Next 2Y14.27%
EPS Next 3Y14%
243.46
-0.21 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change4.71%
Ins Owners0.58%
Ins Owner Change0.89%
Market Cap7.17B
Analysts73.85
Price Target227.19 (-6.68%)
Short Float %7.2%
Short Ratio7.48
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)-1.83%
PT rev (3m)1%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)1.8%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.63 | ||
| Fwd PE | 44.08 | ||
| P/S | 8.41 | ||
| P/FCF | 46.71 | ||
| P/OCF | 43.04 | ||
| P/B | 11.17 | ||
| P/tB | 25.69 | ||
| EV/EBITDA | 34.66 |
EPS(TTM)4.54
EY1.86%
EPS(NY)5.52
Fwd EY2.27%
FCF(TTM)5.21
FCFY2.14%
OCF(TTM)5.66
OCFY2.32%
SpS28.95
BVpS21.79
TBVpS9.48
PEG (NY)3.31
PEG (5Y)2.53
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 | 19.53 |
F-Score6
WACC9.4%
ROIC/WACC1.81
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 5Y14.94%
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 5Y10.47%
EBIT growth 1Y31.8%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year36.74%
EBIT Next 3Y20.54%
EBIT Next 5Y19.64%
FCF growth 1Y86.84%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y82.73%
OCF growth 3Y21%
OCF growth 5Y13.95%