Overall BMI gets a fundamental rating of 7 out of 10. We evaluated BMI against 123 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 has a correct valuation and a medium growth rate. These ratings would make BMI suitable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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

The Return On Assets of BMI (14.55%) is better than 95.12% of its industry peers.
The Return On Equity of BMI (19.86%) is better than 90.24% of its industry peers.
BMI has a Return On Invested Capital of 16.73%. This is amongst the best in the industry. BMI outperforms 94.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMI is significantly above the industry average of 8.85%.
The 3 year average ROIC (16.29%) for BMI is below the current ROIC(16.73%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	14.55%
ROE	19.86%
ROIC	16.73%

ROA(3y)14.26%

ROA(5y)13.05%

ROE(3y)19.46%

ROE(5y)17.71%

ROIC(3y)16.29%

ROIC(5y)15.06%

1.3 Margins

The Profit Margin of BMI (15.45%) is better than 93.50% of its industry peers.
BMI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.01%, BMI belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
BMI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 41.68%, BMI is doing good in the industry, outperforming 71.54% 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	20.01%
PM (TTM)	15.45%
GM	41.68%

OM growth 3Y9.04%

OM growth 5Y5.48%

PM growth 3Y9.53%

PM growth 5Y5.93%

GM growth 3Y2.33%

GM growth 5Y1.07%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 more shares outstanding than it did 1 year ago.
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

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	N/A

ROIC/WACC1.05

WACC15.86%

2.3 Liquidity

A Current Ratio of 3.36 indicates that BMI has no problem at all paying its short term obligations.
The Current ratio of BMI (3.36) is better than 68.29% of its industry peers.
A Quick Ratio of 2.36 indicates that BMI has no problem at all paying its short term obligations.
BMI has a better Quick ratio (2.36) than 63.41% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.36
Quick Ratio	2.36

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.48% 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 23.07% on average per year.
The Revenue has grown by 10.90% in the past year. This is quite good.
The Revenue has been growing by 16.59% on average over the past years. This is quite good.

EPS 1Y (TTM)13.48%

EPS 3Y28.35%

EPS 5Y23.07%

EPS Q2Q%9.62%

Revenue 1Y (TTM)10.9%

Revenue growth 3Y17.46%

Revenue growth 5Y16.59%

Sales Q2Q%7.57%

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 11.19% yearly.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.

EPS Next Y13.91%

EPS Next 2Y10.1%

EPS Next 3Y11.31%

EPS Next 5Y11.19%

Revenue Next Year8.39%

Revenue Next 2Y7.1%

Revenue Next 3Y8.23%

Revenue Next 5Y8.22%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.54, the valuation of BMI can be described as expensive.
BMI's Price/Earnings ratio is a bit cheaper when compared to the industry. BMI is cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.32, BMI is valued at the same level.
A Price/Forward Earnings ratio of 26.81 indicates a quite expensive valuation of BMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMI indicates a somewhat cheap valuation: BMI is cheaper than 62.60% of the companies listed in the same industry.
BMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	30.54
Fwd PE	26.81

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BMI is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMI is valued a bit cheaper than the industry average as 73.98% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	25.46
EV/EBITDA	18.78

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BMI has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)2.2

PEG (5Y)1.32

EPS Next 2Y10.1%

EPS Next 3Y11.31%

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5. Dividend

5.1 Amount

BMI has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.46, BMI pays a better dividend. On top of this BMI pays more dividend than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, BMI's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1.09%

5.2 History

On average, the dividend of BMI grows each year by 16.16%, 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)16.16%

Div Incr Years18

Div Non Decr Years18

5.3 Sustainability

30.73% of the earnings are spent on dividend by BMI. This is a low number and sustainable payout ratio.
BMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP30.73%

EPS Next 2Y10.1%

EPS Next 3Y11.31%

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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 13.91% 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 30.73%.