BADGER METER INC (BMI) Stock Fundamental Analysis
NYSE:BMI - US0565251081 - Common Stock
185.07 USD
-4.22 (-2.23%)
186 USD
+0.93 (+0.5%)
We assign a fundamental rating of 7 out of 10 to BMI. BMI was compared to 124 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. While showing a medium growth rate, BMI is valued expensive at the moment. This makes BMI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
BMI had positive earnings in the past year.
In the past year BMI had a positive cash flow from operations.
In the past 5 years BMI has always been profitable.
In the past 5 years BMI always reported a positive cash flow from operatings.
1.2 Ratios
BMI's Return On Assets of 14.50% is amongst the best of the industry. BMI outperforms 93.55% of its industry peers.
Looking at the Return On Equity, with a value of 20.03%, BMI belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.48%, BMI belongs to the top of the industry, outperforming 91.94% 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 9.67%.
The last Return On Invested Capital (16.48%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| 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
The Profit Margin of BMI (15.53%) is better than 94.35% of its industry peers.
In the last couple of years the Profit Margin of BMI has grown nicely.
The Operating Margin of BMI (19.93%) is better than 98.39% of its industry peers.
In the last couple of years the Operating Margin of BMI has grown nicely.
BMI has a Gross Margin of 41.18%. This is in the better half of the industry: BMI outperforms 70.16% of its industry peers.
BMI's Gross Margin has been stable in the last couple of years.
| 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
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
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 15.48. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BMI (15.48) is better than 95.16% of its industry peers.
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 | 15.48 |
ROIC/WACC1.73
WACC9.51%
2.3 Liquidity
BMI has a Current Ratio of 3.23. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI has a Current ratio of 3.23. This is in the better half of the industry: BMI outperforms 69.35% of its industry peers.
A Quick Ratio of 2.17 indicates that BMI has no problem at all paying its short term obligations.
BMI's Quick ratio of 2.17 is fine compared to the rest of the industry. BMI outperforms 64.52% 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
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.82%.
Measured over the past years, BMI shows a quite strong growth in Revenue. The Revenue has been growing by 14.25% on average per year.
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.
The Revenue is expected to grow by 9.30% on average over the next years. This is quite good.
EPS Next Y14.48%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
EPS Next 5Y12.18%
Revenue Next Year12.41%
Revenue Next 2Y10.35%
Revenue Next 3Y8.27%
Revenue Next 5Y9.3%
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.
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
Based on the Price/Earnings ratio of 40.32, the valuation of BMI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BMI.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (27.03), we can say BMI is valued slightly more expensively.
The Price/Forward Earnings ratio is 34.14, 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 22.63, BMI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 34.14 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMI indicates a somewhat cheap valuation: BMI is cheaper than 69.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.07 | ||
| EV/EBITDA | 25.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BMI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.91
EPS Next 2Y13.21%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
BMI has a yearly dividend return of 0.87%, which is pretty low.
In the last 3 months the price of BMI has falen by -25.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.61, BMI pays a better dividend. On top of this BMI pays more dividend than 85.48% of the companies listed in the same industry.
With a Dividend Yield of 0.87, BMI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of BMI is nicely growing with an annual growth rate of 13.80%!
BMI has been paying a dividend for at least 10 years, so it has 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
BMI pays out 29.46% of its income as dividend. This is a sustainable payout ratio.
BMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.46%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
185.07
-4.22 (-2.23%)
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 Change-2.92%
Market Cap5.45B
Analysts72.86
Price Target238.7 (28.98%)
Short Float %6.48%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)0.29%
PT rev (3m)5.07%
EPS NQ rev (1m)-2.24%
EPS NQ rev (3m)-5.81%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 34.14 | ||
| P/S | 6.24 | ||
| P/FCF | 34.07 | ||
| P/OCF | 31.21 | ||
| P/B | 8.05 | ||
| P/tB | 17.27 | ||
| EV/EBITDA | 25.51 |
EPS(TTM)4.59
EY2.48%
EPS(NY)5.42
Fwd EY2.93%
FCF(TTM)5.43
FCFY2.93%
OCF(TTM)5.93
OCFY3.2%
SpS29.65
BVpS22.99
TBVpS10.72
PEG (NY)2.79
PEG (5Y)1.91
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 | 15.48 |
F-Score6
WACC9.51%
ROIC/WACC1.73
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 2Y10.35%
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%