BADGER METER INC (BMI)
US0565251081 - Common Stock
BMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. BMI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years BMI has been profitable.
In the past 5 years BMI always reported a positive cash flow from operatings.
1.2 Ratios
BMI has a Return On Assets of 13.76%. This is amongst the best in the industry. BMI outperforms 96.83% of its industry peers.
BMI has a Return On Equity of 19.10%. This is amongst the best in the industry. BMI outperforms 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.16%, BMI belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMI is above the industry average of 9.42%.
The last Return On Invested Capital (16.16%) for BMI is above the 3 year average (14.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.76% | ||
| ROE | 19.1% | ||
| ROIC | 16.16% |
ROA(3y)11.8%
ROA(5y)11.43%
ROE(3y)16.02%
ROE(5y)15.19%
ROIC(3y)14.02%
ROIC(5y)13.42%
1.3 Margins
BMI has a Profit Margin of 13.81%. This is amongst the best in the industry. BMI outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of BMI has grown nicely.
The Operating Margin of BMI (17.49%) is better than 93.65% of its industry peers.
BMI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.26%, BMI is doing good in the industry, outperforming 72.22% 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 | 17.49% | ||
| PM (TTM) | 13.81% | ||
| GM | 39.26% |
OM growth 3Y3.07%
OM growth 5Y4.11%
PM growth 3Y4.34%
PM growth 5Y15.47%
GM growth 3Y-0.2%
GM growth 5Y0.98%
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.
Compared to 1 year ago, BMI has about the same amount of shares outstanding.
The number of shares outstanding for BMI has been increased compared to 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 19.05. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
BMI has a Altman-Z score of 19.05. This is amongst the best in the industry. BMI outperforms 96.03% 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 | 19.05 |
ROIC/WACC1.75
WACC9.22%
2.3 Liquidity
A Current Ratio of 3.48 indicates that BMI has no problem at all paying its short term obligations.
BMI has a Current ratio of 3.48. This is in the better half of the industry: BMI outperforms 68.25% of its industry peers.
BMI has a Quick Ratio of 2.30. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.30, BMI is doing good in the industry, outperforming 62.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
BMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.21%, which is quite impressive.
The Earnings Per Share has been growing by 15.31% on average over the past years. This is quite good.
BMI shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.07%.
BMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.16% yearly.
EPS 1Y (TTM)42.21%
EPS 3Y22.7%
EPS 5Y15.31%
EPS growth Q2Q50%
Revenue 1Y (TTM)25.07%
Revenue growth 3Y18.25%
Revenue growth 5Y10.16%
Revenue growth Q2Q23.37%
3.2 Future
Based on estimates for the next years, BMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.56% on average per year.
BMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y13.6%
EPS Next 2Y12%
EPS Next 3Y11.68%
EPS Next 5Y12.56%
Revenue Next Year8.55%
Revenue Next 2Y8.16%
Revenue Next 3Y7.8%
Revenue Next 5Y8.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.47, BMI can be considered very expensive at the moment.
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 (28.28), we can say BMI is valued expensively.
The Price/Forward Earnings ratio is 47.98, which means the current valuation is very expensive for BMI.
BMI's Price/Forward Earnings ratio is in line with the industry average.
BMI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.47 | ||
| Fwd PE | 47.98 |
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 | 53.83 | ||
| EV/EBITDA | 33.73 |
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.
PEG (NY)4.01
PEG (5Y)3.56
EPS Next 2Y12%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, 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 1.73. BMI pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of BMI grows each year by 12.13%, 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)12.13%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
29.68% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
BMI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.68%
EPS Next 2Y12%
EPS Next 3Y11.68%
BADGER METER INC
NYSE:BMI (5/3/2024, 7:04:00 PM)
After market: 189 0 (0%)189
+1.73 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.47 | ||
| Fwd PE | 47.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.01
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.76% | ||
| ROE | 19.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.49% | ||
| PM (TTM) | 13.81% | ||
| GM | 39.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)42.21%
EPS 3Y22.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.07%
Revenue growth 3Y18.25%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y