BADGER METER INC (BMI) Stock Fundamental Analysis
USA - NYSE:BMI - US0565251081 - Common Stock
177.08 USD
-1.26 (-0.71%)
180.62 USD
+3.54 (+2%)
Overall BMI gets a fundamental rating of 7 out of 10. We evaluated BMI against 125 industry peers in the Electronic Equipment, Instruments & Components industry. BMI gets an excellent profitability rating and is at the same time showing great financial health properties. BMI is quite expensive at the moment. It does show a decent growth rate. With these ratings, BMI could be worth investigating further 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.
BMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMI has a better Return On Assets (14.50%) than 94.40% of its industry peers.
BMI's Return On Equity of 20.03% is amongst the best of the industry. BMI outperforms 89.60% of its industry peers.
BMI's Return On Invested Capital of 16.48% is amongst the best of the industry. BMI outperforms 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 9.48%.
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
BMI's Profit Margin of 15.53% is amongst the best of the industry. BMI outperforms 93.60% of its industry peers.
In the last couple of years the Profit Margin of BMI has grown nicely.
With an excellent Operating Margin value of 19.93%, BMI belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
In the last couple of years the Operating Margin of BMI has grown nicely.
BMI has a better Gross Margin (41.18%) than 69.60% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMI is creating some value.
Compared to 1 year ago, BMI has more shares outstanding
The number of shares outstanding for BMI has been increased compared to 5 years ago.
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 15.03 indicates that BMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.03, BMI belongs to the top of the industry, outperforming 93.60% 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 | 15.03 |
ROIC/WACC1.75
WACC9.4%
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.
With a decent Current ratio value of 3.23, BMI is doing good in the industry, outperforming 68.00% of the companies in the same industry.
BMI has a Quick Ratio of 2.17. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI has a Quick ratio of 2.17. This is in the better half of the industry: BMI outperforms 63.20% 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.
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)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
Based on estimates for the next years, BMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.18% on average per year.
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 2Y10.45%
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.
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
Based on the Price/Earnings ratio of 38.58, the valuation of BMI can be described as expensive.
BMI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, BMI is valued a bit more expensive.
BMI is valuated quite expensively with a Price/Forward Earnings ratio of 32.66.
BMI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, BMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.58 | ||
| Fwd PE | 32.66 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA ratio is in line with the industry average.
BMI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BMI is cheaper than 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.6 | ||
| EV/EBITDA | 24.56 |
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)2.66
PEG (5Y)1.82
EPS Next 2Y13.21%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, BMI is not a good candidate for dividend investing.
In the last 3 months the price of BMI has falen by -27.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BMI's Dividend Yield is rather good when compared to the industry average which is at 1.39. BMI pays more dividend than 86.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 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 paid a dividend for at least 10 years, which is 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.
The dividend of BMI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.46%
EPS Next 2Y13.21%
EPS Next 3Y9.86%
177.08
-1.26 (-0.71%)
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 Change0.29%
Market Cap5.22B
Analysts72.86
Price Target237.24 (33.97%)
Short Float %6.2%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)3.1%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-5.65%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.58 | ||
| Fwd PE | 32.66 | ||
| P/S | 5.97 | ||
| P/FCF | 32.6 | ||
| P/OCF | 29.86 | ||
| P/B | 7.7 | ||
| P/tB | 16.53 | ||
| EV/EBITDA | 24.56 |
EPS(TTM)4.59
EY2.59%
EPS(NY)5.42
Fwd EY3.06%
FCF(TTM)5.43
FCFY3.07%
OCF(TTM)5.93
OCFY3.35%
SpS29.65
BVpS22.99
TBVpS10.72
PEG (NY)2.66
PEG (5Y)1.82
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 | 15.03 |
F-Score6
WACC9.4%
ROIC/WACC1.75
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 2Y10.45%
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%