BADGER METER INC (BMI) Stock Fundamental Analysis
USA - NYSE:BMI - US0565251081 - Common Stock
181.01 USD
+1.26 (+0.7%)
181.01 USD
0 (0%)
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. Both the health and profitability get an excellent rating, making BMI a very profitable company, without any liquidiy or solvency issues. BMI is quite expensive at the moment. 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.
Each year in the past 5 years BMI had a positive operating cash flow.
1.2 Ratios
BMI has a Return On Assets of 14.50%. This is amongst the best in the industry. BMI outperforms 94.35% of its industry peers.
With an excellent Return On Equity value of 20.03%, BMI belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.48%, BMI belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
BMI had an Average Return On Invested Capital over the past 3 years of 15.23%. This is significantly above the industry average of 9.44%.
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
With an excellent Profit Margin value of 15.53%, BMI belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Profit Margin of BMI has grown nicely.
BMI's Operating Margin of 19.93% is amongst the best of the industry. BMI outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of BMI has grown nicely.
Looking at the Gross Margin, with a value of 41.18%, BMI is in the better half of the industry, outperforming 69.35% 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 | 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 well above the Cost of Capital (WACC), which means it is creating 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 15.21. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.21, BMI belongs to the top of the industry, outperforming 92.74% 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 | 15.21 |
ROIC/WACC1.81
WACC9.11%
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 68.55% of its industry peers.
A Quick Ratio of 2.17 indicates that BMI has no problem at all paying its short term obligations.
BMI has a Quick ratio of 2.17. This is in the better half of the industry: BMI outperforms 63.71% 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
Looking at the last year, BMI shows a quite strong growth in Revenue. The Revenue has grown by 11.82% in the last year.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.30% on average over the next years. This is quite good.
EPS Next Y13.81%
EPS Next 2Y13.15%
EPS Next 3Y10.5%
EPS Next 5Y12.18%
Revenue Next Year12.3%
Revenue Next 2Y10.4%
Revenue Next 3Y8.55%
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.
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
The Price/Earnings ratio is 39.44, which means the current valuation is very expensive for BMI.
BMI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (27.86), we can say BMI is valued slightly more expensively.
A Price/Forward Earnings ratio of 33.42 indicates a quite expensive valuation of BMI.
BMI's Price/Forward Earnings is on the same level as the industry average.
BMI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.44 | ||
| Fwd PE | 33.42 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA is on the same level as the industry average.
70.16% 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 | 33.33 | ||
| EV/EBITDA | 24.94 |
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.
PEG (NY)2.86
PEG (5Y)1.86
EPS Next 2Y13.15%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, BMI is not a good candidate for dividend investing.
In the last 3 months the price of BMI has falen by -25.39%. 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 2.05, BMI pays a better dividend. On top of this BMI pays more dividend than 84.68% 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 | 0.89% |
5.2 History
On average, the dividend of BMI grows each year by 13.80%, which is quite nice.
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
29.46% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
BMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.46%
EPS Next 2Y13.15%
EPS Next 3Y10.5%
181.01
+1.26 (+0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.93%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change0.29%
Market Cap5.33B
Analysts73.33
Price Target237.24 (31.06%)
Short Float %7.15%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)1.36%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-7.4%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.44 | ||
| Fwd PE | 33.42 | ||
| P/S | 6.1 | ||
| P/FCF | 33.33 | ||
| P/OCF | 30.52 | ||
| P/B | 7.87 | ||
| P/tB | 16.89 | ||
| EV/EBITDA | 24.94 |
EPS(TTM)4.59
EY2.54%
EPS(NY)5.42
Fwd EY2.99%
FCF(TTM)5.43
FCFY3%
OCF(TTM)5.93
OCFY3.28%
SpS29.65
BVpS22.99
TBVpS10.72
PEG (NY)2.86
PEG (5Y)1.86
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 | 15.21 |
F-Score6
WACC9.11%
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)19.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%4.46%
EPS Next Y13.81%
EPS Next 2Y13.15%
EPS Next 3Y10.5%
EPS Next 5Y12.18%
Revenue 1Y (TTM)11.82%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%9.89%
Revenue Next Year12.3%
Revenue Next 2Y10.4%
Revenue Next 3Y8.55%
Revenue Next 5Y9.3%
EBIT growth 1Y22.98%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year36.93%
EBIT Next 3Y16.39%
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%