BADGER METER INC (BMI) Stock Fundamental Analysis
USA - NYSE:BMI - US0565251081 - Common Stock
177.46 USD
+9.3 (+5.53%)
177.465 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to BMI. BMI was compared to 123 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 valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years BMI has been profitable.
Each year in the past 5 years BMI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BMI (14.19%) is better than 94.31% of its industry peers.
BMI has a Return On Equity of 19.75%. This is amongst the best in the industry. BMI outperforms 90.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.43%, BMI belongs to the top of the industry, outperforming 92.68% 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 9.10%.
The last Return On Invested Capital (16.43%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.19% | ||
| ROE | 19.75% | ||
| ROIC | 16.43% |
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
Looking at the Profit Margin, with a value of 15.40%, BMI belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
BMI's Profit Margin has improved in the last couple of years.
The Operating Margin of BMI (19.93%) is better than 97.56% of its industry peers.
BMI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.26%, BMI is in the better half of the industry, outperforming 69.92% 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) | 15.4% | ||
| GM | 41.26% |
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.
The number of shares outstanding for BMI has been increased compared to 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 13.62. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
BMI has a Altman-Z score of 13.62. This is amongst the best in the industry. BMI outperforms 92.68% 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 | 13.62 |
ROIC/WACC1.8
WACC9.12%
2.3 Liquidity
BMI has a Current Ratio of 3.22. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI's Current ratio of 3.22 is fine compared to the rest of the industry. BMI outperforms 66.67% of its industry peers.
BMI has a Quick Ratio of 2.23. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI has a better Quick ratio (2.23) than 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
BMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.63%, 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
The Revenue has grown by 12.11% in the past year. This is quite good.
BMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.25% yearly.
EPS 1Y (TTM)16.63%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%10.19%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.06%
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 11.65% on average per year.
Based on estimates for the next years, BMI will show a quite strong growth in Revenue. The Revenue will grow by 9.05% on average per year.
EPS Next Y14.96%
EPS Next 2Y13.85%
EPS Next 3Y11.31%
EPS Next 5Y11.65%
Revenue Next Year12.6%
Revenue Next 2Y10.45%
Revenue Next 3Y8.85%
Revenue Next 5Y9.05%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.76 indicates a quite expensive valuation of BMI.
The rest of the industry has a similar Price/Earnings ratio as BMI.
BMI is valuated rather expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.37, BMI can be considered very expensive at the moment.
BMI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.46. BMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 32.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
BMI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BMI is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.45 | ||
| EV/EBITDA | 22.27 |
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)2.52
PEG (5Y)1.78
EPS Next 2Y13.85%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
BMI has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.35, BMI pays a better dividend. On top of this BMI pays more dividend than 83.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
30.10% 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.
DP30.1%
EPS Next 2Y13.85%
EPS Next 3Y11.31%
177.46
+9.3 (+5.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.93%
Inst Owner Change0.84%
Ins Owners0.51%
Ins Owner Change0%
Market Cap5.23B
Revenue(TTM)901.14M
Net Income(TTM)138.78M
Analysts76
Price Target226.96 (27.89%)
Short Float %6.55%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP30.1%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.02%
Min EPS beat(2)-7.6%
Max EPS beat(2)3.55%
EPS beat(4)2
Avg EPS beat(4)2.98%
Min EPS beat(4)-7.6%
Max EPS beat(4)21.92%
EPS beat(8)5
Avg EPS beat(8)4.65%
EPS beat(12)8
Avg EPS beat(12)6.34%
EPS beat(16)11
Avg EPS beat(16)6.98%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.62%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.62%
Revenue beat(8)4
Avg Revenue beat(8)1.08%
Revenue beat(12)8
Avg Revenue beat(12)2.82%
Revenue beat(16)11
Avg Revenue beat(16)2.84%
PT rev (1m)-4.33%
PT rev (3m)-4.92%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)1.01%
EPS NY rev (3m)-2.87%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 32.37 | ||
| P/S | 5.8 | ||
| P/FCF | 31.45 | ||
| P/OCF | 28.9 | ||
| P/B | 7.44 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 22.27 |
EPS(TTM)4.7
EY2.65%
EPS(NY)5.48
Fwd EY3.09%
FCF(TTM)5.64
FCFY3.18%
OCF(TTM)6.14
OCFY3.46%
SpS30.58
BVpS23.84
TBVpS11.67
PEG (NY)2.52
PEG (5Y)1.78
Graham Number50.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.19% | ||
| ROE | 19.75% | ||
| ROCE | 21.77% | ||
| ROIC | 16.43% | ||
| ROICexc | 21.75% | ||
| ROICexgc | 51.26% | ||
| OM | 19.93% | ||
| PM (TTM) | 15.4% | ||
| GM | 41.26% | ||
| FCFM | 18.45% |
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%
ROICexgc growth 3Y15.78%
ROICexgc 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-Score5
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.31% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.78% | ||
| Profit Quality | 119.84% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 13.62 |
F-Score5
WACC9.12%
ROIC/WACC1.8
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)16.63%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%10.19%
EPS Next Y14.96%
EPS Next 2Y13.85%
EPS Next 3Y11.31%
EPS Next 5Y11.65%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.06%
Revenue Next Year12.6%
Revenue Next 2Y10.45%
Revenue Next 3Y8.85%
Revenue Next 5Y9.05%
EBIT growth 1Y19.1%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year36.93%
EBIT Next 3Y16.39%
EBIT Next 5Y15.08%
FCF growth 1Y83.29%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y77.62%
OCF growth 3Y21%
OCF growth 5Y13.95%
BADGER METER INC / BMI FAQ
What is the fundamental rating for BMI stock?
ChartMill assigns a fundamental rating of 7 / 10 to BMI.
What is the valuation status of BADGER METER INC (BMI) stock?
ChartMill assigns a valuation rating of 3 / 10 to BADGER METER INC (BMI). This can be considered as Overvalued.
Can you provide the profitability details for BADGER METER INC?
BADGER METER INC (BMI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of BADGER METER INC (BMI) stock?
The Price/Earnings (PE) ratio for BADGER METER INC (BMI) is 37.76 and the Price/Book (PB) ratio is 7.44.
Can you provide the dividend sustainability for BMI stock?
The dividend rating of BADGER METER INC (BMI) is 6 / 10 and the dividend payout ratio is 30.1%.