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Badger Meter (BMI)
NYSE:BMI
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Badger Meter
(NYSE:BMI)
Rating:79Outperform
Price Target:―
Positive Factors
Earnings
The record quarterly gross profit margin led to 1Q25 EPS of $1.30, up 31.3% y/y, above the $1.06 consensus and forecast.
Financial Performance
BMI reported 1Q25 results with revenue of $222.2M, up 13.2% y/y, above the $220.9M consensus.
Market Share
The acquisition of SmartCover is expected to increase BMI's market share of U.S. water utility spending.
Negative Factors
Profit Margins
The integration of SmartCover is expected to initially result in lower profit margins due to intangible amortization and lower initial margins.
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.27B
Dividend Yield0.55%
Average Volume (3M)237.94K
Price to Earnings (P/E)54.4
Beta (1Y)0.96
Revenue Growth15.08%
EPS Growth30.86%
CountryUS
Employees2,210
SectorTechnology
Sector Strength84
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.30
Shares Outstanding29,453,306
10 Day Avg. Volume218,369
30 Day Avg. Volume237,944
Financial Highlights & Ratios
PEG Ratio7.22
Price to Book (P/B)11.35
Price to Sales (P/S)0.00
P/FCF Ratio47.56
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit20.63
Enterprise Value/Ebitda9.79
Forecast
1Y Price Target
$241.83Price Target Upside-2.42% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Badger Meter Business Overview & Revenue Model
Company DescriptionBadger Meter, Inc. is a leading innovator and manufacturer of flow measurement and control solutions, serving a wide range of sectors including water utilities, municipalities, and industrial customers. The company specializes in the development of products and services that help optimize and manage water usage efficiently. Its core offerings include water meters, flow instrumentation, and advanced metering technologies that facilitate data-driven decision making for improved operational efficiency.
How the Company Makes MoneyBadger 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 Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 34.95%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call presented several positive outcomes, such as strong revenue growth, record operating margins, and a significant EPS increase. However, challenges remain with declines in flow instrumentation sales and concerns over tariffs and supply chain disruptions. Despite these challenges, the positive achievements and strategic acquisitions suggest a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total sales grew 13% year over year in the first quarter of 2025, with utility water product line sales increasing 16% year over year.
Record Operating Margins
Operating profit margins reached a record of 22.2%, expanding 360 basis points year over year.
Earnings Per Share Improvement
Consolidated EPS increased by 31% to $1.30 from $0.99 in the prior year comparable quarter.
Strong Free Cash Flow
Free cash flow in the quarter was $30 million, up 60% from $18.8 million in last year's comparable quarter.
Acquisition of SmartCover
The acquisition of SmartCover has been completed, contributing positively to product line synergies and customer feedback.
Negative Updates
Flow Instrumentation Sales Decline
Sales for the flow instrumentation product line decreased nearly 5% year over year due to lower demand in certain market applications.
Tariff and Supply Chain Concerns
Uncertainty and volatility in the tariff picture remain a concern, with potential input cost increases due to tariffs on electronics and components from various regions.
Increased SEA Expenses
SEA expenses increased by $5.4 million, or 13% year over year, partly due to intangible asset amortization from the SmartCover acquisition.
Company Guidance
During the Q1 2025 earnings call, Badger Meter provided robust guidance, highlighting notable financial achievements and strategic outlooks. Total sales grew by 13% year-over-year, driven primarily by a 16% increase in utility water product line sales and a 25% growth in software revenue. Excluding the recent SmartCover acquisition, sales rose by 10%, and operating profit margins reached a record 22.2%, expanding by 360 basis points from the previous year. Gross profit margins also improved to 42.9%, surpassing the company's normalized range of 38% to 40%. Despite facing tariff-related cost challenges, the company expressed confidence in managing these through pricing strategies and operational efficiencies. Additionally, free cash flow surged by 60% to $30 million, and the balance sheet remains strong, supporting continued investments in growth. The company maintained a long-term revenue growth outlook of high single digits and emphasized its strategic focus on managing supply chain and pricing strategies amidst a volatile economic environment.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 852.49M | 826.56M | 703.59M | 565.57M | 505.20M | 425.54M | Gross Profit |
| 347.44M | 329.18M | 276.44M | 219.97M | 205.48M | 168.25M | EBIT |
| 170.78M | 157.94M | 118.05M | 87.30M | 78.72M | 65.16M | EBITDA |
| 196.51M | 190.12M | 146.03M | 113.41M | 106.47M | 90.23M | Net Income Common Stockholders |
| 134.21M | 124.94M | 92.60M | 66.50M | 60.88M | 49.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 128.36M | 295.31M | 191.78M | 138.05M | 87.17M | 72.27M | Total Assets |
| 633.40M | 816.41M | 716.92M | 603.05M | 530.82M | 468.38M | Total Debt |
| 8.28M | 0.00 | 5.76M | 6.79M | 6.18M | 7.22M | Net Debt |
| -120.08M | -295.31M | -186.02M | -131.26M | -81.00M | -65.06M | Total Liabilities |
| 175.37M | 210.18M | 200.44M | 160.63M | 127.75M | 107.12M | Stockholders Equity |
| 458.04M | 606.23M | 516.48M | 442.42M | 403.07M | 361.26M |
| Cash Flow | Free Cash Flow | ||||
| 153.49M | 142.22M | 98.11M | 76.56M | 80.76M | 80.52M | Operating Cash Flow |
| 166.60M | 155.03M | 110.12M | 82.45M | 87.51M | 89.58M | Investing Cash Flow |
| -198.04M | -15.82M | -29.13M | -5.89M | -51.42M | -38.19M | Financing Cash Flow |
| -37.33M | -35.10M | -28.09M | -24.61M | -20.51M | -27.82M |
Badger Meter Technical Analysis
Positive
247.83
Price Trends
219.76
Positive
214.14
Positive
213.71
Positive
Market Momentum
7.41
Positive
61.69
Neutral
34.73
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 247.83 is above the 20-day moving average (MA) of 246.11, above the 50-day MA of 219.76, and above the 200-day MA of 213.71, indicating a bullish trend. The MACD of 7.41 indicates Positive momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 34.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
We use artificial intelligence occasionally in our business and in our products, and challenges with properly managing its use could result in reputational harm, competitive disadvantages, and adverse impacts to our results of operations, while also exposing us to potential legal or regulatory actions that could harm our business. Q4, 2024
2.
The imposition of significant tariffs or other trade barriers by the United States, or other foreign nations, may harm our sales, costs and results of operations. Q4, 2024
Badger Meter Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.50B | 22.17 | 17.73% | ― | 7.10% | 58.52% | |
79 Outperform | $7.27B | 54.35 | 22.80% | 0.55% | 15.08% | 30.86% | |
75 Outperform | $3.80B | 27.71 | 16.73% | ― | 14.93% | 12.89% | |
74 Outperform | $4.75B | 40.33 | 9.66% | 0.17% | 8.40% | 20.03% | |
72 Outperform | $5.38B | 50.49 | 4.39% | 1.29% | -3.43% | -50.48% | |
69 Neutral | $5.08B | 44.28 | 8.02% | 1.04% | 8.56% | 18.99% | |
62 Neutral | $11.80B | 10.31 | -7.45% | 2.91% | 7.43% | -7.78% |
* Technology Sector Average
Performance Comparison
BMI
Badger Meter
247.83
63.01
34.09%
CGNX
Cognex
31.14
-12.02
-27.85%
ESE
Esco Technologies
184.96
79.82
75.92%
ITRI
Itron
121.58
15.10
14.18%
LFUS
Littelfuse
222.69
-25.00
-10.09%
OSIS
OSI Systems
227.78
91.50
67.14%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.