BADGER METER INC (BMI) Stock Fundamental Analysis
NYSE:BMI - New York Stock Exchange, Inc. - US0565251081 - Common Stock - Currency: USD
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 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.
In the past year BMI had a positive cash flow from operations.
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
BMI has a better Return On Assets (15.30%) than 95.12% of its industry peers.
BMI has a Return On Equity of 20.61%. This is amongst the best in the industry. BMI outperforms 90.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.07%, BMI belongs to the top of the industry, outperforming 94.31% 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 8.76%.
The last Return On Invested Capital (17.07%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.3% | ||
| ROE | 20.61% | ||
| ROIC | 17.07% |
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 15.12%, BMI belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
In the last couple of years the Profit Margin of BMI has grown nicely.
BMI has a Operating Margin of 19.11%. This is amongst the best in the industry. BMI outperforms 98.37% of its industry peers.
BMI's Operating Margin has improved in the last couple of years.
BMI has a Gross Margin of 39.83%. This is in the better half of the industry: BMI outperforms 69.92% 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 | 19.11% | ||
| PM (TTM) | 15.12% | ||
| GM | 39.83% |
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.
The number of shares outstanding for BMI has been increased compared to 1 year ago.
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 20.81. 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 20.81, BMI belongs to the top of the industry, outperforming 95.94% 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 | 20.81 |
ROIC/WACC1.93
WACC8.86%
2.3 Liquidity
A Current Ratio of 4.57 indicates that BMI has no problem at all paying its short term obligations.
BMI has a better Current ratio (4.57) than 78.86% of its industry peers.
BMI has a Quick Ratio of 3.36. This indicates that BMI is financially healthy and has no problem in meeting its short term obligations.
BMI's Quick ratio of 3.36 is fine compared to the rest of the industry. BMI outperforms 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
BMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.71%, which is quite impressive.
BMI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.16% yearly.
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.48%.
Measured over the past years, BMI shows a quite strong growth in Revenue. The Revenue has been growing by 14.25% on average per year.
EPS 1Y (TTM)34.71%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%23.81%
Revenue 1Y (TTM)17.48%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%12.47%
3.2 Future
The Earnings Per Share is expected to grow by 11.91% 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 8.05% on average per year.
EPS Next Y12.39%
EPS Next 2Y14.48%
EPS Next 3Y13.88%
EPS Next 5Y11.91%
Revenue Next Year12.54%
Revenue Next 2Y10.35%
Revenue Next 3Y10.61%
Revenue Next 5Y8.05%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BMI is valuated quite expensively with a Price/Earnings ratio of 49.69.
Compared to the rest of the industry, the Price/Earnings ratio of BMI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BMI to the average of the S&P500 Index (29.71), we can say BMI is valued expensively.
With a Price/Forward Earnings ratio of 44.21, BMI can be considered very expensive at the moment.
BMI's Price/Forward Earnings ratio is in line with the industry average.
BMI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.69 | ||
| Fwd PE | 44.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
The rest of the industry has a similar Price/Free Cash Flow ratio as BMI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.46 | ||
| EV/EBITDA | 30.88 |
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.
A more expensive valuation may be justified as BMI's earnings are expected to grow with 13.88% in the coming years.
PEG (NY)4.01
PEG (5Y)2.35
EPS Next 2Y14.48%
EPS Next 3Y13.88%
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 1.98, 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 0.65, BMI pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of BMI is nicely growing with an annual growth rate of 13.80%!
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 28.69% 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.
DP28.69%
EPS Next 2Y14.48%
EPS Next 3Y13.88%
210.18
+0.5 (+0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95%
Inst Owner Change3.51%
Ins Owners0.58%
Ins Owner Change3.71%
Market Cap6.18B
Analysts73.33
Price Target227.31 (8.15%)
Short Float %5.18%
Short Ratio7.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP28.69%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.81%
Min EPS beat(2)-5.96%
Max EPS beat(2)-3.67%
EPS beat(4)2
Avg EPS beat(4)4.48%
Min EPS beat(4)-5.96%
Max EPS beat(4)19.54%
EPS beat(8)6
Avg EPS beat(8)7.61%
EPS beat(12)8
Avg EPS beat(12)5.75%
EPS beat(16)12
Avg EPS beat(16)7.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)0.46%
Revenue beat(4)3
Avg Revenue beat(4)2.45%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)6.63%
Revenue beat(8)6
Avg Revenue beat(8)4.07%
Revenue beat(12)9
Avg Revenue beat(12)3.39%
Revenue beat(16)12
Avg Revenue beat(16)2.88%
PT rev (1m)1.06%
PT rev (3m)2.61%
EPS NQ rev (1m)-4.68%
EPS NQ rev (3m)-6.19%
EPS NY rev (1m)-3%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)4.37%
Revenue NQ rev (3m)3.58%
Revenue NY rev (1m)3.66%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.69 | ||
| Fwd PE | 44.21 | ||
| P/S | 7.48 | ||
| P/FCF | 43.46 | ||
| P/OCF | 39.87 | ||
| P/B | 10.2 | ||
| P/tB | 13.75 | ||
| EV/EBITDA | 30.88 |
EPS(TTM)4.23
EY2.01%
EPS(NY)4.75
Fwd EY2.26%
FCF(TTM)4.84
FCFY2.3%
OCF(TTM)5.27
OCFY2.51%
SpS28.1
BVpS20.61
TBVpS15.28
PEG (NY)4.01
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.3% | ||
| ROE | 20.61% | ||
| ROCE | 22.62% | ||
| ROIC | 17.07% | ||
| ROICexc | 29.59% | ||
| ROICexgc | 48.45% | ||
| OM | 19.11% | ||
| PM (TTM) | 15.12% | ||
| GM | 39.83% | ||
| FCFM | 17.21% |
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%
ROICexcg growth 3Y15.78%
ROICexcg 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-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.83% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.54% | ||
| Profit Quality | 113.83% | ||
| Current Ratio | 4.57 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 20.81 |
F-Score8
WACC8.86%
ROIC/WACC1.93
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)34.71%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%23.81%
EPS Next Y12.39%
EPS Next 2Y14.48%
EPS Next 3Y13.88%
EPS Next 5Y11.91%
Revenue 1Y (TTM)17.48%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%12.47%
Revenue Next Year12.54%
Revenue Next 2Y10.35%
Revenue Next 3Y10.61%
Revenue Next 5Y8.05%
EBIT growth 1Y33.79%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year36.29%
EBIT Next 3Y20.46%
EBIT Next 5Y16.39%
FCF growth 1Y44.95%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y40.79%
OCF growth 3Y21%
OCF growth 5Y13.95%