BADGER METER INC (BMI)
US0565251081 - Common Stock
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. 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 expensively, but it does show have an excellent growth rating. These ratings would make BMI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year BMI was profitable.
BMI had a positive operating cash flow in the past year.
BMI had positive earnings in each of the past 5 years.
BMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMI has a better Return On Assets (14.82%) than 96.75% of its industry peers.
BMI's Return On Equity of 20.12% is amongst the best of the industry. BMI outperforms 91.06% of its industry peers.
BMI's Return On Invested Capital of 16.98% is amongst the best of the industry. BMI outperforms 95.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 8.68%.
The last Return On Invested Capital (16.98%) for BMI is above the 3 year average (14.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.82% | ||
| ROE | 20.12% | ||
| ROIC | 16.98% |
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
With an excellent Profit Margin value of 14.80%, BMI belongs to the best of the industry, outperforming 92.68% 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 18.76%, BMI belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
BMI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.55%, 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 | 18.76% | ||
| PM (TTM) | 14.8% | ||
| GM | 39.55% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMI is still creating some value.
Compared to 1 year ago, BMI has about the same amount of shares outstanding.
BMI has more shares outstanding than it did 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
BMI has an Altman-Z score of 21.21. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
BMI has a Altman-Z score of 21.21. This is amongst the best in the industry. BMI outperforms 95.12% 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 | 21.21 |
ROIC/WACC1.69
WACC10.05%
2.3 Liquidity
A Current Ratio of 4.10 indicates that BMI has no problem at all paying its short term obligations.
The Current ratio of BMI (4.10) is better than 73.17% of its industry peers.
BMI has a Quick Ratio of 2.87. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI has a Quick ratio of 2.87. This is in the better half of the industry: BMI outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.97% over the past year.
Measured over the past years, BMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.31% on average per year.
BMI shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.25%.
Measured over the past years, BMI shows a quite strong growth in Revenue. The Revenue has been growing by 10.16% on average per year.
EPS 1Y (TTM)38.97%
EPS 3Y22.7%
EPS 5Y15.31%
EPS Q2Q%22.73%
Revenue 1Y (TTM)20.25%
Revenue growth 3Y18.25%
Revenue growth 5Y10.16%
Sales Q2Q%11.95%
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 12.56% yearly.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y37.12%
EPS Next 2Y25.51%
EPS Next 3Y18.93%
EPS Next 5Y12.56%
Revenue Next Year17.02%
Revenue Next 2Y12.71%
Revenue Next 3Y10.86%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.40, the valuation of BMI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, BMI is valued quite expensively.
With a Price/Forward Earnings ratio of 44.32, BMI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as BMI.
BMI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.4 | ||
| Fwd PE | 44.32 |
4.2 Price Multiples
BMI's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.33 | ||
| EV/EBITDA | 33.58 |
4.3 Compensation for Growth
BMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BMI has an outstanding profitability rating, which may justify a higher PE ratio.
BMI's earnings are expected to grow with 18.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)3.55
EPS Next 2Y25.51%
EPS Next 3Y18.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, BMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.95, BMI pays a better dividend. On top of this BMI pays more dividend than 85.37% of the companies listed in the same industry.
With a Dividend Yield of 0.62, BMI pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.13%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
28.40% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
The dividend of BMI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.4%
EPS Next 2Y25.51%
EPS Next 3Y18.93%
BADGER METER INC
NYSE:BMI (11/21/2024, 8:15:31 PM)
After market: 219.23 0 (0%)219.23
+2.48 (+1.14%)
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 Cap6.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 54.4 | ||
| Fwd PE | 44.32 | ||
| 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)1.47
PEG (5Y)3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.82% | ||
| ROE | 20.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.76% | ||
| PM (TTM) | 14.8% | ||
| GM | 39.55% | ||
| 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 | 4.1 | ||
| Quick Ratio | 2.87 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)38.97%
EPS 3Y22.7%
EPS 5Y
EPS Q2Q%
EPS Next Y37.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.25%
Revenue growth 3Y18.25%
Revenue growth 5Y
Sales 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