Badger Meter (BMI) AI Stock Analysis

• Market Cap: $4.62B
• Dividend Yield: 0.82%
• Average Volume (3M): 453.41K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.88
• Revenue Growth: 12.11%
• EPS Growth: 16.45%
• Country: US
• Employees: 2,210
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.14
• Shares Outstanding: 29,181,599
• 10 Day Avg. Volume: 395,960
• 30 Day Avg. Volume: 453,408
• PEG Ratio: 2.75
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 5.59
• P/FCF Ratio: 30.22
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 11.42
• Enterprise Value/Ebitda: 19.67
• 1Y Price Target: $181.67
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.11
• Revenue Forecast (FY): $965.52M

• Rating: 71 Outperform
• Price Target: $176.00 ▲(11.15% Upside)
• Action: Reiterated Date: 01/29/26
• Date: Action: Reiterated 01/29/26

Score is driven primarily by strong financial performance (profitable growth, solid cash flow, and a debt-free balance sheet). This is partially offset by weak technicals (price below major moving averages with negative MACD) and a relatively rich valuation (P/E ~34). Earnings call tone is positive with clear long-term targets and major contract momentum, but near-term pacing and cost headwinds temper the outlook.

Positive Factors

Debt-free balance sheet

A zero-debt capital structure and steadily compounding equity give Badger Meter durable financial flexibility: it can fund capex, M&A, and share repurchases from cash without leverage, lowering solvency risk and preserving optionality through utility spending cycles over the next several years.

Robust cash generation and FCF growth

Improving operating cash flow and rising free cash flow demonstrate conversion of earnings into spendable cash. This supports sustained reinvestment in product development, factory capacity, software integration, dividends and repurchases, underpinning long-term return on invested capital.

Growing software recurring revenue and large AMI wins

Expanding software sales, successful SmartCover integration and a multinational AMI contract (PRASA) strengthen recurring revenue, broaden solution stickiness and enlarge addressable market. These structural shifts increase lifetime customer value and diversify revenue beyond one-time meter sales.

Negative Factors

Timing uncertainty around large deployments

Large AMI projects are multi-year and lumpy; uncertain shipment schedules create durable volatility in reported revenue and make short-term forecasting difficult. Over 2–6 months this can compress visible organic growth even if long-term economics remain attractive, complicating operational planning.

Commodity and tariff headwinds

Sustained higher input costs or shifting trade/tariff policies can structurally depress gross margins for hardware-centric firms. If elevated copper and alloy prices persist, Badger's normalized gross margin targets may be harder to sustain without price passthrough or further efficiency gains.

Turnkey projects and onshore manufacturing raise margin risk

Serving as prime on turnkey contracts and routing production to higher-cost domestic sites (to meet Buy American) can permanently lower blended margins on large deployments. Over multiple quarters this structural mix shift can reduce profitability despite revenue growth unless offset by higher-margin software or scale efficiencies.

Badger Meter Business Overview & Revenue Model

Company Description

Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions in the United States, Asia, Canada, Europe, Mexico, the Middle East, and internationally. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, oil, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. In addition, the company offers ORION Migratable for automatic meter reading; ORION (SE) for traditional fixed network applications; and ORION Cellular for infrastructure-free fixed network meter reading solution, as well as BEACON advanced metering analytics, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. It also serves water utilities, industrial, and other industries. The company sells its products directly, as well as through resellers and representatives. Badger Meter, Inc. was incorporated in 1905 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Badger Meter generates revenue through the sale of its flow measurement and control products, including water meters and related technologies. The company operates primarily in the water utilities sector, providing products that help municipalities manage water distribution efficiently. Key revenue streams include direct sales to utility companies, which account for a significant portion of its income, as well as sales to industrial customers for flow control applications. Additionally, the company benefits from recurring revenue through maintenance services and software solutions that facilitate data analytics and system integration. Strategic partnerships with utility providers and technology firms also enhance Badger Meter's market presence and contribute to its earnings by expanding its product offerings and reach.

Badger Meter Financial Statement Overview

Summary

High-quality financial profile with strong multi-year revenue/earnings expansion, healthy margins, and solid cash generation. Balance sheet is exceptionally conservative with no reported debt and rising equity, supporting flexibility; main watch item is potential growth normalization after the strong 2022–2024 run and some working-capital driven cash conversion variability.

Income Statement

Badger Meter shows a strong multi-year growth and profitability profile. Revenue has risen consistently from $426M (2020) to $917M (2025), with particularly strong growth in 2022–2024, supporting expanding operating profit dollars (EBIT $65M to $183M) and net income ($49M to $142M). Profitability is healthy, with 2024 margins solid (gross margin ~40%, net margin ~15%) and improving versus earlier years, indicating good pricing power and/or operating leverage. The main weakness is the apparent slowdown in 2025 growth versus 2024, suggesting the company may be cycling tougher comps or facing demand normalization.

Balance Sheet

The balance sheet is a key strength: total debt is reported at $0 across the period, and equity steadily compounds (about $361M in 2020 to $713M in 2025) alongside growing assets ($471M to $974M). With essentially no leverage and improving profitability, financial risk is low and flexibility is high. A potential limitation is that returns on equity, while strong in 2023–2024 (~18%–21%), could moderate if equity continues to build faster than earnings, but the overall capital structure remains exceptionally conservative.

Cash Flow

Cash generation is solid and generally improving. Operating cash flow increased from ~$90M (2020) to ~$184M (2025), and free cash flow is also growing (2024 $142M to 2025 $184M), with 2025 showing a strong free cash flow growth rate. Cash conversion is generally good, with free cash flow close to net income in recent years (roughly ~0.89–0.93 in 2020–2024). The key weakness is some variability in cash conversion (e.g., operating cash flow was below net income in 2022–2023), which can happen with working-capital swings, even though the broader trend is positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	916.66M	826.56M	703.59M	565.57M	505.20M
Gross Profit	382.07M	329.18M	276.44M	219.97M	205.48M
EBITDA	223.24M	190.12M	146.03M	113.41M	106.47M
Net Income	141.63M	124.94M	92.60M	66.50M	60.88M
Balance Sheet
Total Assets	973.58M	816.41M	716.92M	603.05M	530.82M
Cash, Cash Equivalents and Short-Term Investments	226.02M	295.31M	191.78M	138.05M	87.17M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	260.28M	210.18M	200.44M	160.63M	127.75M
Stockholders Equity	713.29M	606.23M	516.48M	442.42M	403.07M
Cash Flow
Free Cash Flow	169.67M	142.22M	98.11M	76.56M	80.76M
Operating Cash Flow	183.70M	155.03M	110.12M	82.45M	87.51M
Investing Cash Flow	-198.05M	-15.82M	-29.13M	-5.89M	-51.42M
Financing Cash Flow	-57.98M	-35.10M	-28.09M	-24.61M	-20.51M

Badger Meter Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 158.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMI, the sentiment is Neutral. The current price of 158.34 is above the 20-day moving average (MA) of 153.57, below the 50-day MA of 167.40, and below the 200-day MA of 193.23, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 57.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BMI.

Badger Meter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESE	80 Outperform	$7.39B	54.45	9.25%	0.16%	13.13%	24.02%
BMI	71 Outperform	$4.62B	32.61	21.47%	0.82%	12.11%	16.45%
SANM	71 Outperform	$8.64B	37.84	9.74%	―	7.40%	13.79%
ITRI	69 Neutral	$4.40B	15.04	19.38%	―	0.14%	14.12%
OSIS	68 Neutral	$4.91B	33.78	18.33%	―	9.37%	15.70%
TTMI	68 Neutral	$11.03B	63.49	10.67%	―	17.88%	91.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Badger Meter Corporate Events

Badger Meter Announces Key Executive Appointments

On December 10, 2025, Badger Meter announced several key executive appointments effective January 1, 2026, including Robert A. Wrocklage as Executive Vice President – North America Municipal Utility and Daniel R. Weltzien as Vice President – Chief Financial Officer and Treasurer. These appointments come with significant salary and incentive adjustments, reflecting the company’s strategic focus on leadership alignment and operational efficiency. Additionally, Badger Meter amended its Key Executive Employment Agreements to provide enhanced benefits and protections for its executives in the event of a change-in-control, underscoring the company’s commitment to retaining top talent and ensuring stability during potential transitions.

The most recent analyst rating on (BMI) stock is a Buy with a $235.00 price target. To see the full list of analyst forecasts on Badger Meter stock, see the BMI Stock Forecast page.