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. With these ratings, BMI could be worth investigating further 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.
BMI had positive earnings in each of the past 5 years.
In the past 5 years BMI always reported a positive cash flow from operatings.
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.
The Return On Equity of BMI (20.92%) is better than 89.60% of its industry peers.
BMI's Return On Invested Capital of 16.99% is amongst the best of the industry. BMI outperforms 93.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMI is significantly above the industry average of 9.30%.
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 93.60% of the companies in the same industry.
BMI's Profit Margin has improved in the last couple of years.
The Operating Margin of BMI (20.03%) is better than 97.60% of its industry peers.
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 70.40% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
BMI has an Altman-Z score of 18.19. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 18.19, BMI belongs to the best of the industry, outperforming 94.40% 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 | 18.19 |
ROIC/WACC1.89
WACC8.97%
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 has a better Current ratio (2.92) than 64.80% of its industry peers.
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 of 1.86. This is comparable to the rest of the industry: BMI outperforms 58.40% of 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.
The Earnings Per Share has been growing by 21.16% on average over the past years. This is a very strong growth
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.08%.
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.
BMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.47% yearly.
EPS Next Y14.13%
EPS Next 2Y14.35%
EPS Next 3Y13.85%
EPS Next 5Y14.94%
Revenue Next Year12.36%
Revenue Next 2Y10.18%
Revenue Next 3Y10.12%
Revenue Next 5Y10.47%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 50.58, which means the current valuation is very expensive for BMI.
BMI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (28.22), we can say BMI is valued expensively.
The Price/Forward Earnings ratio is 41.52, which means the current valuation is very expensive for BMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, BMI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 41.52 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.06 | ||
| EV/EBITDA | 31.84 |
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.
BMI's earnings are expected to grow with 13.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.58
PEG (5Y)2.39
EPS Next 2Y14.35%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
BMI has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 2.27, 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 2.44, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.26%
EPS Next 2Y14.35%
EPS Next 3Y13.85%
229.64
+5.42 (+2.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change0.14%
Ins Owners0.58%
Ins Owner Change0.6%
Market Cap6.76B
Analysts73.85
Price Target227.19 (-1.07%)
Short Float %7.21%
Short Ratio7.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)-0.05%
PT rev (3m)2.16%
EPS NQ rev (1m)5.54%
EPS NQ rev (3m)-4.8%
EPS NY rev (1m)3.91%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.58 | ||
| Fwd PE | 41.52 | ||
| P/S | 7.93 | ||
| P/FCF | 44.06 | ||
| P/OCF | 40.59 | ||
| P/B | 10.54 | ||
| P/tB | 24.23 | ||
| EV/EBITDA | 31.84 |
EPS(TTM)4.54
EY1.98%
EPS(NY)5.53
Fwd EY2.41%
FCF(TTM)5.21
FCFY2.27%
OCF(TTM)5.66
OCFY2.46%
SpS28.95
BVpS21.79
TBVpS9.48
PEG (NY)3.58
PEG (5Y)2.39
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 | 18.19 |
F-Score6
WACC8.97%
ROIC/WACC1.89
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 Y14.13%
EPS Next 2Y14.35%
EPS Next 3Y13.85%
EPS Next 5Y14.94%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
Revenue Next Year12.36%
Revenue Next 2Y10.18%
Revenue Next 3Y10.12%
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%