BADGER METER INC (BMI) Stock Fundamental Analysis
NYSE:BMI - New York Stock Exchange, Inc. - US0565251081 - Common Stock - Currency: USD
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BMI is not priced too expensively while it is growing strongly. Keep and eye on this one! BMI also has an excellent dividend rating. This makes BMI very considerable for dividend and 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.
BMI had positive earnings in 4 of the past 5 years.
Of the past 5 years BMI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.82%, BMI belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
BMI has a Return On Equity of 20.12%. This is amongst the best in the industry. BMI outperforms 89.17% of its industry peers.
With an excellent Return On Invested Capital value of 16.98%, BMI belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 8.99%.
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 90.83% of the companies in the same industry.
In the last couple of years the Profit Margin of BMI has grown nicely.
Looking at the Operating Margin, with a value of 18.76%, BMI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
In the last couple of years the Operating Margin of BMI has grown nicely.
Looking at the Gross Margin, with a value of 39.55%, BMI is in the better half of the industry, outperforming 70.00% 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 | 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.
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
An Altman-Z score of 20.53 indicates that BMI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 20.53, BMI belongs to the best of the industry, outperforming 94.17% 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 | 20.53 |
ROIC/WACC1.64
WACC10.35%
2.3 Liquidity
A Current Ratio of 4.10 indicates that BMI has no problem at all paying its short term obligations.
BMI has a Current ratio of 4.10. This is in the better half of the industry: BMI outperforms 72.50% 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.
Looking at the Quick ratio, with a value of 2.87, BMI is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
| 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.
BMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.31% yearly.
The Revenue has grown by 20.25% in the past year. This is a very strong growth!
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)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 15.97% yearly.
BMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.77% yearly.
EPS Next Y36.86%
EPS Next 2Y25.43%
EPS Next 3Y19.29%
EPS Next 5Y15.97%
Revenue Next Year17.01%
Revenue Next 2Y12.76%
Revenue Next 3Y10.9%
Revenue Next 5Y9.77%
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
The Price/Earnings ratio is 53.08, which means the current valuation is very expensive for BMI.
The rest of the industry has a similar Price/Earnings ratio as BMI.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (28.46), we can say BMI is valued expensively.
With a Price/Forward Earnings ratio of 43.30, BMI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BMI to the average of the S&P500 Index (92.56), we can say BMI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.08 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMI is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.13 | ||
| EV/EBITDA | 32.26 |
4.3 Compensation for Growth
BMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BMI may justify a higher PE ratio.
A more expensive valuation may be justified as BMI's earnings are expected to grow with 19.29% in the coming years.
PEG (NY)1.44
PEG (5Y)3.47
EPS Next 2Y25.43%
EPS Next 3Y19.29%
5. Dividend
5.1 Amount
BMI has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 1.86, BMI pays a better dividend. On top of this BMI pays more dividend than 85.83% of the companies listed in the same industry.
With a Dividend Yield of 0.65, BMI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
On average, the dividend of BMI grows each year by 12.13%, which is quite nice.
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)12.13%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
BMI pays out 28.40% of its income as dividend. This is a sustainable payout ratio.
The dividend of BMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.4%
EPS Next 2Y25.43%
EPS Next 3Y19.29%
BADGER METER INC
NYSE:BMI (1/31/2025, 8:14:04 PM)
After market: 213.91 0 (0%)213.91
+5.33 (+2.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change-0.68%
Ins Owners0.5%
Ins Owner Change-0.18%
Market Cap6.29B
Analysts73.33
Price Target224.93 (5.15%)
Short Float %5.03%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.99
Dividend Growth(5Y)12.13%
DP28.4%
Div Incr Years18
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.17%
Min EPS beat(2)-3.67%
Max EPS beat(2)8.01%
EPS beat(4)3
Avg EPS beat(4)6.33%
Min EPS beat(4)-3.67%
Max EPS beat(4)19.54%
EPS beat(8)6
Avg EPS beat(8)8.03%
EPS beat(12)9
Avg EPS beat(12)8.32%
EPS beat(16)13
Avg EPS beat(16)7.72%
Revenue beat(2)1
Avg Revenue beat(2)1.36%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)5.44%
Revenue beat(4)2
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)6.63%
Revenue beat(8)6
Avg Revenue beat(8)4.21%
Revenue beat(12)9
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)2.97%
PT rev (1m)0.38%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.08 | ||
| Fwd PE | 43.3 | ||
| P/S | 7.83 | ||
| P/FCF | 48.13 | ||
| P/OCF | 44.65 | ||
| P/B | 10.64 | ||
| P/tB | 14.73 | ||
| EV/EBITDA | 32.26 |
EPS(TTM)4.03
EY1.88%
EPS(NY)4.94
Fwd EY2.31%
FCF(TTM)4.44
FCFY2.08%
OCF(TTM)4.79
OCFY2.24%
SpS27.33
BVpS20.1
TBVpS14.53
PEG (NY)1.44
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.82% | ||
| ROE | 20.12% | ||
| ROCE | 22.38% | ||
| ROIC | 16.98% | ||
| ROICexc | 27.58% | ||
| ROICexgc | 45.62% | ||
| OM | 18.76% | ||
| PM (TTM) | 14.8% | ||
| GM | 39.55% | ||
| FCFM | 16.26% |
ROA(3y)11.8%
ROA(5y)11.43%
ROE(3y)16.02%
ROE(5y)15.19%
ROIC(3y)14.02%
ROIC(5y)13.42%
ROICexc(3y)19.32%
ROICexc(5y)17.53%
ROICexgc(3y)35.35%
ROICexgc(5y)31.15%
ROCE(3y)18.48%
ROCE(5y)17.73%
ROICexcg growth 3Y15.33%
ROICexcg growth 5Y13.47%
ROICexc growth 3Y15.07%
ROICexc growth 5Y11.25%
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%
F-Score8
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 32.59% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.38% | ||
| Profit Quality | 109.89% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 20.53 |
F-Score8
WACC10.35%
ROIC/WACC1.64
Cap/Depr(3y)29.79%
Cap/Depr(5y)31.27%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.6%
Profit Quality(3y)117.92%
Profit Quality(5y)134.44%
High Growth Momentum
Growth
EPS 1Y (TTM)38.97%
EPS 3Y22.7%
EPS 5Y15.31%
EPS Q2Q%22.73%
EPS Next Y36.86%
EPS Next 2Y25.43%
EPS Next 3Y19.29%
EPS Next 5Y15.97%
Revenue 1Y (TTM)20.25%
Revenue growth 3Y18.25%
Revenue growth 5Y10.16%
Sales Q2Q%11.95%
Revenue Next Year17.01%
Revenue Next 2Y12.76%
Revenue Next 3Y10.9%
Revenue Next 5Y9.77%
EBIT growth 1Y39.05%
EBIT growth 3Y21.88%
EBIT growth 5Y14.69%
EBIT Next Year60.76%
EBIT Next 3Y25.15%
EBIT Next 5Y19.09%
FCF growth 1Y76.1%
FCF growth 3Y6.81%
FCF growth 5Y13.67%
OCF growth 1Y76.54%
OCF growth 3Y7.12%
OCF growth 5Y12.78%