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 125 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 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
BMI had positive earnings in the past year.
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
With an excellent Return On Assets value of 14.92%, BMI belongs to the best of the industry, outperforming 93.60% of the companies in the same industry.
BMI has a Return On Equity of 20.92%. This is amongst the best in the industry. BMI outperforms 90.40% of its industry peers.
BMI's Return On Invested Capital of 16.99% is amongst the best of the industry. BMI outperforms 93.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMI is significantly above the industry average of 9.16%.
The last Return On Invested Capital (16.99%) for BMI is above the 3 year average (15.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.92% | ||
| ROE | 20.92% | ||
| ROIC | 16.99% |
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
The Profit Margin of BMI (15.74%) is better than 95.20% of its industry peers.
BMI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.03%, BMI belongs to the best of the industry, outperforming 98.40% 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 40.76%, BMI is doing good in the industry, outperforming 71.20% 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 | 20.03% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.76% |
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
The number of shares outstanding for BMI has been increased compared to 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
An Altman-Z score of 19.25 indicates that BMI is not in any danger for bankruptcy at the moment.
BMI's Altman-Z score of 19.25 is amongst the best of the industry. BMI outperforms 96.80% of its industry peers.
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 | 19.25 |
ROIC/WACC1.81
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.92 indicates that BMI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.92, BMI is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
BMI has a Quick Ratio of 1.86. This is a normal value and indicates that BMI is financially healthy and should not expect problems in meeting its short term obligations.
BMI has a Quick ratio (1.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.84% 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
BMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.08%.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.
EPS 1Y (TTM)30.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%31.31%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.25% on average over the next years. This is quite good.
BMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.34% yearly.
EPS Next Y17.68%
EPS Next 2Y14.73%
EPS Next 3Y12.81%
EPS Next 5Y13.25%
Revenue Next Year12.69%
Revenue Next 2Y10.35%
Revenue Next 3Y9.29%
Revenue Next 5Y8.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 52.65, the valuation of BMI can be described as expensive.
BMI's Price/Earnings is on the same level as the industry average.
BMI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 42.93 indicates a quite expensive valuation of BMI.
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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.65 | ||
| Fwd PE | 42.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMI.
BMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.86 | ||
| EV/EBITDA | 34.09 |
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.
A more expensive valuation may be justified as BMI's earnings are expected to grow with 12.81% in the coming years.
PEG (NY)2.98
PEG (5Y)2.49
EPS Next 2Y14.73%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
BMI has a yearly dividend return of 0.56%, which is pretty low.
BMI's Dividend Yield is rather good when compared to the industry average which is at 1.76. BMI pays more dividend than 83.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, BMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of BMI grows each year by 13.80%, 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)13.8%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
BMI pays out 28.26% 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.
DP28.26%
EPS Next 2Y14.73%
EPS Next 3Y12.81%
239.01
-0.68 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change0.89%
Market Cap7.04B
Analysts72.86
Price Target234.06 (-2.07%)
Short Float %6.9%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.22
Dividend Growth(5Y)13.8%
DP28.26%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.98%
Min EPS beat(2)-5.96%
Max EPS beat(2)21.92%
EPS beat(4)2
Avg EPS beat(4)5.08%
Min EPS beat(4)-5.96%
Max EPS beat(4)21.92%
EPS beat(8)6
Avg EPS beat(8)8.06%
EPS beat(12)9
Avg EPS beat(12)7.92%
EPS beat(16)12
Avg EPS beat(16)7.88%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)5.44%
Revenue beat(8)5
Avg Revenue beat(8)2.81%
Revenue beat(12)9
Avg Revenue beat(12)3.45%
Revenue beat(16)12
Avg Revenue beat(16)3.05%
PT rev (1m)3.03%
PT rev (3m)1.15%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)1.28%
EPS NY rev (3m)7.15%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.65 | ||
| Fwd PE | 42.93 | ||
| P/S | 8.26 | ||
| P/FCF | 45.86 | ||
| P/OCF | 42.25 | ||
| P/B | 10.97 | ||
| P/tB | 25.22 | ||
| EV/EBITDA | 34.09 |
EPS(TTM)4.54
EY1.9%
EPS(NY)5.57
Fwd EY2.33%
FCF(TTM)5.21
FCFY2.18%
OCF(TTM)5.66
OCFY2.37%
SpS28.95
BVpS21.79
TBVpS9.48
PEG (NY)2.98
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.92% | ||
| ROE | 20.92% | ||
| ROCE | 22.51% | ||
| ROIC | 16.99% | ||
| ROICexc | 20.55% | ||
| ROICexgc | 48.72% | ||
| OM | 20.03% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.76% | ||
| FCFM | 18.01% |
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-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.39% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.97% | ||
| Profit Quality | 114.37% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 19.25 |
F-Score6
WACC9.37%
ROIC/WACC1.81
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)30.84%
EPS 3Y26.69%
EPS 5Y21.16%
EPS Q2Q%31.31%
EPS Next Y17.68%
EPS Next 2Y14.73%
EPS Next 3Y12.81%
EPS Next 5Y13.25%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y17.83%
Revenue growth 5Y14.25%
Sales Q2Q%13.21%
Revenue Next Year12.69%
Revenue Next 2Y10.35%
Revenue Next 3Y9.29%
Revenue Next 5Y8.34%
EBIT growth 1Y31.8%
EBIT growth 3Y26.12%
EBIT growth 5Y20.53%
EBIT Next Year40.29%
EBIT Next 3Y20.1%
EBIT Next 5Y17.71%
FCF growth 1Y86.84%
FCF growth 3Y20.76%
FCF growth 5Y14.2%
OCF growth 1Y82.73%
OCF growth 3Y21%
OCF growth 5Y13.95%