BADGER METER INC (BMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMI - US0565251081 - Common Stock
174.61 USD
+0.51 (+0.29%)
174.61 USD
0 (0%)
Taking everything into account, BMI scores 7 out of 10 in our fundamental rating. 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 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
In the past year BMI was profitable.
BMI had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 14.19%, BMI belongs to the best of the industry, outperforming 94.35% of the companies in the same industry.
The Return On Equity of BMI (19.75%) is better than 90.32% of its industry peers.
BMI has a better Return On Invested Capital (16.43%) than 93.55% of its industry peers.
BMI had an Average Return On Invested Capital over the past 3 years of 15.23%. This is significantly above the industry average of 9.00%.
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
BMI has a better Profit Margin (15.40%) than 93.55% of its industry peers.
BMI's Profit Margin has improved in the last couple of years.
BMI has a Operating Margin of 19.93%. This is amongst the best in the industry. BMI outperforms 97.58% 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 70.16% 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 just above the Cost of Capital (WACC), which means it is creating some value.
BMI has more shares outstanding than it did 1 year ago.
BMI has more shares outstanding than it did 5 years ago.
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
BMI has an Altman-Z score of 14.00. This indicates that BMI is financially healthy and has little risk of bankruptcy at the moment.
BMI's Altman-Z score of 14.00 is amongst the best of the industry. BMI outperforms 91.13% 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 | 14 |
ROIC/WACC1.75
WACC9.39%
2.3 Liquidity
A Current Ratio of 3.22 indicates that BMI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.22, BMI is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
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.
The Quick ratio of BMI (2.23) is better than 62.90% 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.
Measured over the past years, BMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.16% on average per year.
The Revenue has grown by 12.11% in the past year. This is quite good.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 9.05% on average over the next years. This is quite good.
EPS Next Y14.83%
EPS Next 2Y13.74%
EPS Next 3Y11.42%
EPS Next 5Y11.65%
Revenue Next Year12.55%
Revenue Next 2Y10.45%
Revenue Next 3Y8.95%
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
With a Price/Earnings ratio of 37.15, BMI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
BMI is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.91, 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 23.88, BMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.15 | ||
| Fwd PE | 31.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
68.55% 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 | 30.94 | ||
| EV/EBITDA | 23.09 |
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)1.76
EPS Next 2Y13.74%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, BMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.47, BMI pays a better dividend. On top of this BMI pays more dividend than 84.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of BMI grows each year by 13.80%, which is quite nice.
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 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 2Y13.74%
EPS Next 3Y11.42%
174.61
+0.51 (+0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change0%
Market Cap5.15B
Revenue(TTM)901.14M
Net Income(TTM)138.78M
Analysts77.5
Price Target222.59 (27.48%)
Short Float %7.66%
Short Ratio7.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP30.1%
Div Incr Years18
Div Non Decr Years18
Ex-DateN/A
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)-1.31%
PT rev (3m)-6.18%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.15 | ||
| Fwd PE | 31.91 | ||
| P/S | 5.71 | ||
| P/FCF | 30.94 | ||
| P/OCF | 28.44 | ||
| P/B | 7.32 | ||
| P/tB | 14.97 | ||
| EV/EBITDA | 23.09 |
EPS(TTM)4.7
EY2.69%
EPS(NY)5.47
Fwd EY3.13%
FCF(TTM)5.64
FCFY3.23%
OCF(TTM)6.14
OCFY3.52%
SpS30.58
BVpS23.84
TBVpS11.67
PEG (NY)2.51
PEG (5Y)1.76
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 | 14 |
F-Score5
WACC9.39%
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)16.63%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%10.19%
EPS Next Y14.83%
EPS Next 2Y13.74%
EPS Next 3Y11.42%
EPS Next 5Y11.65%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.06%
Revenue Next Year12.55%
Revenue Next 2Y10.45%
Revenue Next 3Y8.95%
Revenue Next 5Y9.05%
EBIT growth 1Y19.1%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year39.7%
EBIT Next 3Y17.64%
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.
Can you provide the valuation status for BADGER METER INC?
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.
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 14.83% 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%.