BADGER METER INC (BMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMI - US0565251081 - Common Stock
174.36 USD
+4.84 (+2.86%)
BMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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. While showing a medium growth rate, BMI is valued expensive at the moment. This makes BMI very considerable for 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.
- In the past 5 years BMI has always been profitable.
- In the past 5 years BMI always reported a positive cash flow from operatings.
1.2 Ratios
- BMI's Return On Assets of 14.19% is amongst the best of the industry. BMI outperforms 94.31% of its industry peers.
- The Return On Equity of BMI (19.75%) is better than 90.24% of its industry peers.
- BMI has a Return On Invested Capital of 16.43%. This is amongst the best in the industry. BMI outperforms 93.50% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 8.87%.
- The 3 year average ROIC (15.23%) for BMI is below the current ROIC(16.43%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 15.40%, BMI belongs to the best 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.
- BMI has a better Operating Margin (19.93%) than 95.94% of its industry peers.
- In the last couple of years the Operating Margin of BMI has grown nicely.
- BMI's Gross Margin of 41.26% is fine compared to the rest of the industry. BMI outperforms 70.73% of its industry peers.
- 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 | 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.
- Compared to 1 year ago, BMI has more shares outstanding
- 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 13.71. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 13.71, BMI belongs to the top of the industry, outperforming 91.06% 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 | 13.71 |
ROIC/WACC1.85
WACC8.88%
2.3 Liquidity
- A Current Ratio of 3.22 indicates that BMI has no problem at all paying its short term obligations.
- BMI has a better Current ratio (3.22) than 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 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.63% over the past year.
- 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 12.11% 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)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
- The Earnings Per Share is expected to grow by 11.65% on average over the next years. This is quite good.
- 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 Y14.8%
EPS Next 2Y13.69%
EPS Next 3Y11.21%
EPS Next 5Y11.65%
Revenue Next Year12.45%
Revenue Next 2Y10.4%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- BMI is valuated quite expensively with a Price/Earnings ratio of 37.10.
- 60.98% of the companies in the same industry are more expensive than BMI, based on the Price/Earnings ratio.
- BMI is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 31.89, which means the current valuation is very expensive for BMI.
- BMI's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, BMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.1 | ||
| Fwd PE | 31.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BMI is valued a bit cheaper than 60.98% of the companies in the same industry.
- 69.11% of the companies in the same industry are more expensive than BMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.9 | ||
| EV/EBITDA | 22.46 |
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)2.51
PEG (5Y)1.75
EPS Next 2Y13.69%
EPS Next 3Y11.21%
5. Dividend
5.1 Amount
- BMI has a yearly dividend return of 0.93%, which is pretty low.
- BMI's Dividend Yield is rather good when compared to the industry average which is at 0.46. BMI pays more dividend than 85.37% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
- BMI pays out 30.10% of its income as dividend. This is a sustainable payout ratio.
- BMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.1%
EPS Next 2Y13.69%
EPS Next 3Y11.21%
BADGER METER INC / BMI FAQ
What is the fundamental rating for BMI stock?
ChartMill assigns a fundamental rating of 7 / 10 to BMI.
Can you provide the valuation status for BADGER METER INC?
ChartMill assigns a valuation rating of 4 / 10 to BADGER METER INC (BMI). This can be considered as Fairly Valued.
Can you provide the profitability details for BADGER METER INC?
BADGER METER INC (BMI) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for BMI stock?
The Earnings per Share (EPS) of BADGER METER INC (BMI) is expected to grow by 14.8% in the next year.
How sustainable is the dividend of BADGER METER INC (BMI) stock?
The dividend rating of BADGER METER INC (BMI) is 6 / 10 and the dividend payout ratio is 30.1%.