BADGER METER INC (BMI) Stock Fundamental Analysis
NYSE:BMI - New York Stock Exchange, Inc. - US0565251081 - Common Stock - Currency: USD
BMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 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 shows excellent growth, but is valued quite expensive already. This makes BMI very considerable for growth and 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.
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
The Return On Assets of BMI (15.30%) is better than 93.55% of its industry peers.
The Return On Equity of BMI (20.61%) is better than 90.32% of its industry peers.
The Return On Invested Capital of BMI (17.07%) is better than 93.55% 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 9.26%.
The last Return On Invested Capital (17.07%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.3% | ||
| ROE | 20.61% | ||
| ROIC | 17.07% |
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 15.12%, BMI belongs to the best of the industry, outperforming 91.13% 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 19.11%, BMI belongs to the top of the industry, outperforming 97.58% of the companies in the same industry.
BMI's Operating Margin has improved in the last couple of years.
The Gross Margin of BMI (39.83%) is better than 68.55% of its industry peers.
BMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.11% | ||
| PM (TTM) | 15.12% | ||
| GM | 39.83% |
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.
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
An Altman-Z score of 20.14 indicates that BMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 20.14, BMI belongs to the top of the industry, outperforming 95.16% 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 | 20.14 |
ROIC/WACC1.9
WACC8.98%
2.3 Liquidity
BMI has a Current Ratio of 4.57. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BMI (4.57) is better than 79.84% of its industry peers.
A Quick Ratio of 3.36 indicates that BMI has no problem at all paying its short term obligations.
BMI's Quick ratio of 3.36 is fine compared to the rest of the industry. BMI outperforms 78.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 3.36 |
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
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.48%.
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)17.48%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
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 14.94% yearly.
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 Year12.65%
Revenue Next 2Y10.4%
Revenue Next 3Y10.58%
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.
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
Based on the Price/Earnings ratio of 44.41, the valuation of BMI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BMI.
The average S&P500 Price/Earnings ratio is at 28.29. BMI is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 36.45 indicates a quite expensive valuation of BMI.
BMI's Price/Forward Earnings ratio is in line with the industry average.
BMI is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 36.45 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA is on the same level as the industry average.
BMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.7 | ||
| EV/EBITDA | 29.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)3.14
PEG (5Y)2.1
EPS Next 2Y14.35%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, 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 2.40. BMI pays more dividend than 83.87% of the companies in the same industry.
With a Dividend Yield of 0.67, BMI pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
BMI pays out 28.69% of its income as dividend. This is a 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.
DP28.69%
EPS Next 2Y14.35%
EPS Next 3Y13.85%
201.63
+17.73 (+9.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change0.61%
Ins Owners0.58%
Ins Owner Change0.6%
Market Cap5.93B
Analysts73.85
Price Target231.41 (14.77%)
Short Float %5.34%
Short Ratio7.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP28.69%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.81%
Min EPS beat(2)-5.96%
Max EPS beat(2)-3.67%
EPS beat(4)2
Avg EPS beat(4)4.48%
Min EPS beat(4)-5.96%
Max EPS beat(4)19.54%
EPS beat(8)6
Avg EPS beat(8)7.61%
EPS beat(12)8
Avg EPS beat(12)5.75%
EPS beat(16)12
Avg EPS beat(16)7.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)0.46%
Revenue beat(4)3
Avg Revenue beat(4)2.45%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)6.63%
Revenue beat(8)6
Avg Revenue beat(8)4.07%
Revenue beat(12)9
Avg Revenue beat(12)3.39%
Revenue beat(16)12
Avg Revenue beat(16)2.88%
PT rev (1m)1.8%
PT rev (3m)4.06%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-6.57%
EPS NY rev (1m)1.55%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)3.81%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 36.45 | ||
| P/S | 7.17 | ||
| P/FCF | 41.7 | ||
| P/OCF | 38.25 | ||
| P/B | 9.78 | ||
| P/tB | 13.2 | ||
| EV/EBITDA | 29.64 |
EPS(TTM)4.54
EY2.25%
EPS(NY)5.53
Fwd EY2.74%
FCF(TTM)4.84
FCFY2.4%
OCF(TTM)5.27
OCFY2.61%
SpS28.1
BVpS20.61
TBVpS15.28
PEG (NY)3.14
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.3% | ||
| ROE | 20.61% | ||
| ROCE | 22.62% | ||
| ROIC | 17.07% | ||
| ROICexc | 29.59% | ||
| ROICexgc | 48.45% | ||
| OM | 19.11% | ||
| PM (TTM) | 15.12% | ||
| GM | 39.83% | ||
| FCFM | 17.21% |
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-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.83% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.54% | ||
| Profit Quality | 113.83% | ||
| Current Ratio | 4.57 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 20.14 |
F-Score8
WACC8.98%
ROIC/WACC1.9
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)17.48%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
Revenue Next Year12.65%
Revenue Next 2Y10.4%
Revenue Next 3Y10.58%
Revenue Next 5Y10.47%
EBIT growth 1Y33.79%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year36.74%
EBIT Next 3Y20.54%
EBIT Next 5Y19.64%
FCF growth 1Y44.95%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y40.79%
OCF growth 3Y21%
OCF growth 5Y13.95%