Badger Meter (BMI) AI Stock Analysis

• Market Cap: $5.68B
• Dividend Yield: 0.72%
• Average Volume (3M): 301.64K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 0.88
• Revenue Growth: 15.08%
• EPS Growth: 30.86%
• Country: US
• Employees: 2,210
• Sector: Technology
• Sector Strength: 96
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.17
• Shares Outstanding: 29,468,807
• 10 Day Avg. Volume: 520,742
• 30 Day Avg. Volume: 301,640
• PEG Ratio: 48.06
• Price to Book (P/B): 8.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.80
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 41.75
• Enterprise Value/Ebitda: 20.72
• 1Y Price Target: $243.00
• Price Target Upside: 29.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: ―

Badger Meter's strong financial performance and positive earnings call provide a solid foundation for the stock, despite mixed technical indicators and high valuation concerns. The company's robust revenue growth, profitability, and strategic outlook suggest a well-managed business, supporting the overall positive score.

Positive Factors

Market Share Expansion

The acquisition of SmartCover is expected to increase BMI's market share of U.S. water utility spending.

Profitability

BMI achieved the highest quarterly gross profit margin in its history, driven by a favorable sales mix.

Revenue Growth

BMI reported revenue modestly above consensus, driven by higher-margin remote monitoring software services.

Negative Factors

Earnings Performance

EPS was below expectations due to higher selling, engineering and administration costs.

Integration Challenges

The integration of SmartCover is expected to initially result in lower profit margins due to intangible amortization.

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 makes money primarily through the sale of its metering products and solutions to water utilities, municipalities, and industrial clients. The company's revenue streams are driven by the demand for its water meters, flow instrumentation systems, and smart metering technologies that provide accurate water usage data and analytics. Badger Meter also generates income through its service offerings, which include installation, maintenance, and data management solutions. Significant partnerships with municipal and industrial clients, as well as an increasing global emphasis on water conservation and efficient resource management, contribute to the company's earnings.

Badger Meter Financial Statement Overview

Summary

Badger Meter demonstrates strong financial health with solid growth and profitability. Revenue growth, robust margins, and excellent balance sheet stability with no debt are major positives. Strong cash flow management supports reinvestment and shareholder value, indicating a well-managed company with a sound financial position.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	826.56M	703.59M	565.57M	505.20M	425.54M
Gross Profit	329.18M	276.44M	219.97M	205.48M	168.25M
EBITDA	190.12M	146.03M	113.41M	106.47M	90.23M
Net Income	124.94M	92.60M	66.50M	60.88M	49.34M
Balance Sheet
Total Assets	816.41M	716.92M	603.05M	530.82M	468.38M
Cash, Cash Equivalents and Short-Term Investments	295.31M	191.78M	138.05M	87.17M	72.27M
Total Debt	0.00	5.76M	6.79M	6.18M	7.22M
Total Liabilities	210.18M	200.44M	160.63M	127.75M	107.12M
Stockholders Equity	606.23M	516.48M	442.42M	403.07M	361.26M
Cash Flow
Free Cash Flow	142.22M	98.11M	76.56M	80.76M	80.52M
Operating Cash Flow	155.03M	110.12M	82.45M	87.51M	89.58M
Investing Cash Flow	-15.82M	-29.13M	-5.89M	-51.42M	-38.19M
Financing Cash Flow	-35.10M	-28.09M	-24.61M	-20.51M	-27.82M

Badger Meter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 188.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMI, the sentiment is Negative. The current price of 188 is below the 20-day moving average (MA) of 226.66, below the 50-day MA of 238.27, and below the 200-day MA of 218.07, indicating a bearish trend. The MACD of -13.11 indicates Positive momentum. The RSI at 19.94 is Positive, neither overbought nor oversold. The STOCH value of 7.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMI.

Badger Meter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMI	79 Outperform	$5.68B	41.94	21.88%	0.72%	15.08%	30.86%
ESE	77 Outperform	$4.93B	41.80	9.66%	0.17%	8.40%	20.03%
OSIS	75 Outperform	$3.76B	27.40	16.73%	―	14.93%	12.89%
ITRI	74 Outperform	$6.21B	24.85	17.73%	―	7.10%	58.52%
LFUS	71 Outperform	$5.86B	55.01	4.39%	1.19%	-3.43%	-50.48%
CGNX	71 Outperform	$5.81B	50.64	8.02%	0.92%	8.56%	18.99%
Sector *	50 Neutral	C$3.11B	2.48	-63.12%	2.59%	4.49%	-5.92%