Badger Meter (BMI)
NYSE:BMI
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Badger Meter
(NYSE:BMI)
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Rating:71Outperform
Price Target:
$176.00
▲(14.09% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.50B
Dividend Yield0.82%
Average Volume (3M)339.65K
Price to Earnings (P/E)38.1
Beta (1Y)0.89
Revenue Growth12.11%
EPS Growth16.45%
CountryUS
Employees2,210
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.14
Shares Outstanding29,181,599
10 Day Avg. Volume262,305
30 Day Avg. Volume339,648
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)7.19
Price to Sales (P/S)5.59
P/FCF Ratio30.22
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.66
Enterprise Value/Gross Profit11.19
Enterprise Value/Ebitda19.27
Forecast
1Y Price Target
$178.63Price Target Upside15.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)5.07
Revenue Forecast (FY)$960.01M
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 ...
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 municipalitie...
Badger Meter Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call emphasized strong multi-year growth, record revenue, margin expansion, robust free cash flow, successful integration of SmartCover, and a significant AMI win (PRASA). Near-term variability tied to project pacing, timing uncertainty for large deployments, tariff/commodity cost pressures (notably copper and Bi-alloy inputs), and acquisition-related expense increases were noted as challenges. Management reiterated confidence in a high-single-digit organic growth outlook over a 5-year horizon while acknowledging quarter-to-quarter unevenness.Positive Updates
Record Full-Year Revenue and Strong Top-Line Growth
2025 revenue surpassed $900 million, representing 11% year-over-year sales growth and a 17% compounded annual growth rate over the past 5 years.
Negative Updates
Project Pacing Led to Sequential Sales Decline
Q4 utility water sales declined 6% sequentially versus Q3 2025 due to fewer operating days and project pacing (timing and customer/project mix), and management expects a similar unevenness into H1 2026 with a stronger H2 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Strong Top-Line Growth
2025 revenue surpassed $900 million, representing 11% year-over-year sales growth and a 17% compounded annual growth rate over the past 5 years.
Read all positive updates
Company Guidance
Badger Meter reiterated its long‑term targets and near‑term cadence: management expects high‑single‑digit organic sales growth over the next five years but noted 2026 will be back‑loaded (lower growth in H1, stronger growth in H2) due to project pacing; the large PRASA award (~1.6 million service connections) should begin shipments in 2026 with more meaningful revenue in H2 but will not be separately sized for 2026; normalized gross margin is guided to a 39%–42% range (Q4 gross margin was 42.1%), tariffs reached price‑cost parity in 2025 but remain fluid in 2026 and higher copper/ingot costs are expected to be a headwind, SmartCover (2025 sales $40M) is integrated and on track for 2026 earnings accretion, and management expects continued operating profit margin expansion and free cash flow conversion in excess of earnings over the five‑year horizon; reminder metrics from the call include Q4 sales of $221M (+8% y/y; +2% base), FY2025 sales >$900M (+11%; 17% 5‑yr CAGR), Q4 EPS $1.14 (+10% y/y), record Q4 free cash flow $50.8M, primary working capital ~20.9% of sales, cash on hand >$225M, $15M of share repurchases in Q4, and software revenue >$74M (8% of sales; 28% 5‑yr CAGR).Badger Meter Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very 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
Neutral
154.27
Price Trends
151.61
Positive
163.85
Negative
178.91
Negative
Market Momentum
0.33
Negative
53.04
Neutral
62.81
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 154.27 is above the 20-day moving average (MA) of 150.58, above the 50-day MA of 151.61, and below the 200-day MA of 178.91, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BMI.
Badger Meter Risk Analysis
Badger Meter disclosed 21 risk factors in its most recent earnings report. Badger Meter reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Badger Meter Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.00B | 44.07 | 21.34% | 0.16% | 13.13% | 24.02% | |
71 Outperform | $4.50B | 38.15 | 20.71% | 0.82% | 12.11% | 16.45% | |
69 Neutral | $4.18B | 13.96 | 18.49% | ― | 0.14% | 14.12% | |
68 Neutral | $4.75B | 27.58 | 16.91% | ― | 9.37% | 15.70% | |
68 Neutral | $10.95B | 41.17 | 10.61% | ― | 17.88% | 91.41% | |
66 Neutral | $7.64B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BMI
Badger Meter
154.27
-28.85
-15.76%
ESE
Esco Technologies
308.94
157.25
103.66%
ITRI
Itron
92.99
-6.54
-6.57%
OSIS
OSI Systems
288.47
97.31
50.91%
SANM
Sanmina-Sci
139.85
62.06
79.78%
TTMI
TTM Technologies
105.85
86.01
433.52%
Badger Meter Corporate Events
Business Operations and StrategyExecutive/Board Changes
Badger Meter Announces Key Executive Appointments
Positive
Dec 11, 2025
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 &...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.