Badger Meter (BMI) AI Stock Analysis

• Market Cap: $5.47B
• Dividend Yield: 0.77%
• Average Volume (3M): 431.76K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.91
• Revenue Growth: 12.11%
• EPS Growth: 16.45%
• Country: US
• Employees: 2,210
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.19
• Shares Outstanding: 29,469,786
• 10 Day Avg. Volume: 509,596
• 30 Day Avg. Volume: 431,764
• PEG Ratio: 1.43
• Price to Book (P/B): 10.27
• Price to Sales (P/S): 7.53
• P/FCF Ratio: 43.79
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 5.64
• Enterprise Value/Gross Profit: 13.67
• Enterprise Value/Ebitda: 24.47
• 1Y Price Target: $231.17
• Price Target Upside: 24.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $214.00 ▲(15.36% Upside)

Badger Meter's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust sales growth, profitability, and cash flow management are complemented by strategic initiatives and successful acquisitions. However, the high valuation and mixed technical indicators slightly temper the overall outlook.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for Badger Meter's products, which supports long-term business expansion and market leadership in the water management sector.

Cash Flow Management

Robust cash flow generation enhances Badger Meter's ability to reinvest in growth opportunities, pay dividends, and maintain financial stability, supporting sustainable long-term operations.

Product Innovation

Innovative products like AMI and BlueEdge position Badger Meter as a leader in digital water technology, driving durable growth and competitive advantage in the industry.

Negative Factors

Tariff and Trade-Related Costs

Ongoing tariff and trade costs can pressure margins and profitability, potentially impacting Badger Meter's financial performance and strategic flexibility over the medium term.

Increased SEA Expenses

Rising SEA expenses could strain operational efficiency and limit profit margins, challenging Badger Meter's ability to maintain cost-effective growth in the long run.

Federal Funding Concerns

Uncertainty around federal funding may delay customer decisions, affecting Badger Meter's sales cycles and revenue predictability, posing a risk to consistent growth.

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

Badger Meter exhibits strong financial health with solid growth, profitability, and cash flow management. The company shows effective revenue growth, strong margins, and excellent balance sheet stability with no debt. Cash flow generation is robust, supporting potential reinvestment and shareholder value enhancement.

Income Statement

Badger Meter demonstrates strong revenue growth with a TTM revenue increase of 3.13% compared to the previous year. Gross profit margin is solid at 40.76%, and the net profit margin is healthy at 15.74%. EBIT and EBITDA margins are also robust, indicating efficient operations and strong profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.33%, indicating financial stability. The debt-to-equity ratio is excellent at 0 due to no outstanding debt, reducing financial risk. ROE is impressive at 20.91%, showcasing effective use of equity capital, though a slight decrease from the previous year.

Cash Flow

Operating cash flow is strong relative to net income, demonstrating effective cash management. Free cash flow growth rate is robust at 1.54% over the past year, indicating healthy liquidity and capacity for reinvestment or shareholder returns. The free cash flow to net income ratio is high, showing strong cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	901.14M	826.56M	703.59M	565.57M	505.20M	425.54M
Gross Profit	371.84M	329.18M	276.44M	219.97M	205.48M	168.25M
EBITDA	207.66M	190.12M	146.03M	113.41M	106.47M	90.23M
Net Income	138.78M	124.94M	92.60M	66.50M	60.88M	49.34M
Balance Sheet
Total Assets	978.27M	816.41M	716.92M	603.05M	530.82M	471.22M
Cash, Cash Equivalents and Short-Term Investments	201.69M	295.31M	191.78M	138.05M	87.17M	72.27M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	275.76M	210.18M	200.44M	160.63M	127.75M	109.96M
Stockholders Equity	702.51M	606.23M	516.48M	442.42M	403.07M	361.26M
Cash Flow
Free Cash Flow	166.30M	142.22M	98.11M	76.56M	80.76M	80.52M
Operating Cash Flow	180.96M	155.03M	110.12M	82.45M	87.51M	89.58M
Investing Cash Flow	-198.69M	-15.82M	-29.13M	-5.89M	-51.42M	-38.19M
Financing Cash Flow	-41.22M	-35.10M	-28.09M	-24.61M	-20.51M	-27.82M

Badger Meter Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.50
• 50DMA: Positive
• 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 Positive. The current price of 185.5 is above the 20-day moving average (MA) of 180.36, above the 50-day MA of 180.53, and below the 200-day MA of 206.89, indicating a neutral trend. The MACD of 1.27 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BMI.

Badger Meter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	―	$7.19B	28.88	11.58%	―	5.87%	20.66%
BMI	―	$5.47B	39.52	21.45%	0.77%	12.11%	16.45%
ESE	―	$5.72B	49.91	9.01%	0.14%	10.65%	15.22%
OSIS	―	$4.23B	29.20	16.49%	―	11.33%	18.47%
ITRI	―	$6.21B	23.25	18.92%	―	3.90%	44.95%
TTMI	―	$6.12B	66.45	5.89%	―	14.24%	424.78%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Badger Meter Corporate Events

Badger Meter Reports Strong Q3 2025 Performance

Badger Meter, Inc. is a leading provider of smart water management solutions, specializing in innovative measurement hardware, communication, and analytics software to optimize water usage for utilities and industries.

Badger Meter Reports Strong Q3 Earnings with Record Cash Flow

Badger Meter’s recent earnings call conveyed a strong and optimistic sentiment, showcasing impressive sales growth, record free cash flow, and expanding gross margins. Despite challenges such as tariffs and increased expenses, the company emphasized its strategic growth initiatives and customer engagement as key positive drivers. The management expressed confidence in their long-term strategy, even amid concerns about trade costs and federal funding impacts.