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Badger Meter
(NYSE:BMI)
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Rating:72Outperform
Price Target:
$141.00
▲(11.62% Upside)
Action:Reiterated
Date:07/23/26
BMI scores well on financial strength—especially its debt-free balance sheet, strong margins, and consistent free cash flow—driving the largest portion of the rating. The score is held back by weak price trend/technical posture and a premium P/E, while the latest earnings call adds caution due to year-over-year declines and a flattish FY26 organic outlook with back-half execution risk.
Positive Factors
Conservative balance sheet
Zero reported total debt and steadily growing equity (~$403M in 2021 to ~$810M TTM) give the company durable financial flexibility. Low leverage reduces solvency risk, supports buybacks and acquisitions, and preserves runway through project timing volatility while strong ROE (~18.8% TTM) reflects efficient capital use.
Negative Factors
Revenue softness and flattish outlook
A multi-quarter revenue decline and management's FY26 organic guidance of roughly flattish growth (with gains concentrated in Q4) signal execution and timing risk. Heavy back‑half weighting makes multi-quarter comparability sensitive to project ramp timing, threatening sustained top-line expansion if project awards or ramp schedules slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Zero reported total debt and steadily growing equity (~$403M in 2021 to ~$810M TTM) give the company durable financial flexibility. Low leverage reduces solvency risk, supports buybacks and acquisitions, and preserves runway through project timing volatility while strong ROE (~18.8% TTM) reflects efficient capital use.
Read all positive factors
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.78B
Dividend Yield1.19%
Average Volume (3M)541.01K
Price to Earnings (P/E)31.3
Beta (1Y)0.70
Revenue Growth0.80%
EPS Growth-7.04%
CountryUS
Employees2,477
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.29
Shares Outstanding28,986,847
10 Day Avg. Volume669,718
30 Day Avg. Volume541,007
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$157.29Price Target Upside24.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)4.42
Revenue Forecast (FY)$910.88M
Badger Meter Business Overview & Revenue Model
Company Description
Badger Meter, Inc. (BMI) provides a comprehensive range of solutions for flow measurement, quality assessment, control, and communication. Operating globally, the company serves markets across North America, Europe, Asia, and the Middle East. For ...
How the Company Makes Money
Badger Meter makes money primarily by selling flow measurement hardware and associated software/communications solutions to utilities and industrial customers. Key revenue streams include: (1) water meter and smart metering solutions sold to water...
Badger Meter Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but broadly cautious message: management highlighted clear sequential improvements, product-line wins (flow instrumentation), continued commercial momentum on AMI and NAS, disciplined cost controls, share repurchases and a strengthened liquidity position. However, meaningful year-over-year declines in revenue (-7% total; -7.5% base), operating earnings (-12%), EPS (-13%), and free cash flow (~46% decrease), together with higher working capital and ongoing electronic component pressures, temper near-term optimism. Management reaffirmed a flattish organic revenue outlook for FY26 with growth skewed to Q4 and emphasized long-term secular drivers and confidence in execution, but execution risk remains from uneven project ramping and supply dynamics.Positive Updates
Sequential Sales Improvement
Base sales increased 9% sequentially from Q1 to Q2, reflecting initial ramping of several awarded AMI projects and modest improvement in short-term order rates.
Negative Updates
Year-over-Year Revenue Decline
Total sales were $222.3 million in Q2, down 7% year-over-year. Excluding ~2 months of UDLive contribution (~$2 million), base sales were down 7.5% year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Sales Improvement
Base sales increased 9% sequentially from Q1 to Q2, reflecting initial ramping of several awarded AMI projects and modest improvement in short-term order rates.
Read all positive updates
Company Guidance
The company reiterated guidance for sequential top‑line improvement through the second half and said full‑year 2026 organic revenue (excluding UDLive) is expected to be roughly flattish with 2025 but “flattish” with variability and a year‑over‑year growth rate heavily weighted to Q4; management expects Q3 sales to be sequentially higher than Q2. Key Q2 metrics: total sales $222.3M (‑7% YoY), base sales down 7.5% YoY but +9% vs Q1, utility water sales ‑8% YoY (‑9% excluding UDLive) but +8% sequential on an organic basis, and flow instrumentation +6% YoY. Profitability: operating earnings ‑12% YoY, operating margin 17.7% (‑110 bps; base op margin excl. UDLive 18.4%, ‑40 bps), gross margin 40.8% (‑30 bps). Other items: Q2 SG&A $51.4M (‑$1.6M YoY), UDLive added ~$1.8M of run‑rate expense for two months and remaining transaction costs were $1.2M, UDLive intangible amortization preliminarily ~ $5M annually, effective tax rate 25.2% (vs 24.5%), diluted EPS $1.02 (‑13% YoY), primary working capital 22.9% of sales (up from 20.0%), free cash flow $21.9M (vs $40.6M prior year), repurchased 204k shares for $25.3M in Q2 with ~$90M authorization remaining (≈$80M deployed over past three quarters), and a renewed undrawn $150M credit facility; management continues to target full‑year cash‑flow conversion in excess of 100% of net earnings.Badger Meter Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 880.96M | 916.66M | 826.56M | 703.59M | 565.57M | 505.20M |
| Gross Profit | 363.92M | 382.07M | 329.18M | 276.44M | 219.97M | 205.48M |
| EBITDA | 197.98M | 223.24M | 190.12M | 146.03M | 113.41M | 106.47M |
| Net Income | 125.71M | 141.63M | 124.94M | 92.60M | 66.50M | 60.88M |
Balance Sheet | ||||||
| Total Assets | 998.17M | 973.58M | 816.41M | 716.92M | 603.05M | 530.82M |
| Cash, Cash Equivalents and Short-Term Investments | 95.73M | 226.02M | 295.31M | 191.78M | 138.05M | 87.17M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 315.29M | 260.28M | 210.18M | 200.44M | 160.63M | 127.75M |
| Stockholders Equity | 683.14M | 713.29M | 606.23M | 516.48M | 442.42M | 403.07M |
Cash Flow | ||||||
| Free Cash Flow | 150.20M | 169.67M | 142.22M | 98.11M | 76.56M | 80.76M |
| Operating Cash Flow | 166.59M | 183.70M | 155.03M | 110.12M | 82.45M | 87.51M |
| Investing Cash Flow | -110.76M | -198.05M | -15.82M | -29.13M | -5.89M | -51.42M |
| Financing Cash Flow | -125.14M | -57.98M | -35.10M | -28.09M | -24.61M | -20.51M |
Badger Meter Technical Analysis
Negative
126.32
Price Trends
134.37
Negative
135.71
Negative
152.99
Negative
Market Momentum
-0.73
Positive
37.96
Neutral
11.64
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 126.32 is below the 20-day moving average (MA) of 139.98, below the 50-day MA of 134.37, and below the 200-day MA of 152.99, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 37.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.33B | 16.39 | 16.53% | ― | -5.69% | 2.02% | |
78 Outperform | $8.07B | 26.52 | 20.50% | 0.10% | 16.43% | 14.49% | |
72 Outperform | $3.78B | 31.32 | 18.03% | 1.27% | 0.80% | -7.04% | |
63 Neutral | $9.83B | 32.55 | 10.88% | ― | 58.56% | 19.37% | |
62 Neutral | $3.62B | 24.60 | 16.74% | ― | 6.98% | 8.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $12.00B | 61.08 | 11.26% | ― | 23.10% | 146.72% |
* Technology Sector Average
BMI
Badger Meter
134.35
-45.06
-25.12%
ESE
Esco Technologies
315.29
124.00
64.82%
ITRI
Itron
99.66
-23.52
-19.09%
OSIS
OSI Systems
221.39
1.82
0.83%
SANM
Sanmina-Sci
185.56
74.60
67.23%
TTMI
TTM Technologies
115.44
72.10
166.36%
Badger Meter Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Badger Meter Extends Revolving Credit Facility to 2031
Positive
Jun 11, 2026
On June 5, 2026, Badger Meter, Inc. amended and extended its $150 million multi-currency revolving credit facility, pushing the maturity to July 8, 2031, with no borrowings outstanding at the time of the change. The facility allows U.S. dollar, eu...
Business Operations and Strategy
Badger Meter Sets Investor Day With New Presentation
Neutral
May 21, 2026
Badger Meter, Inc. announced that it will use a specific investor presentation during its Investor Day scheduled for May 21, 2026, outlining information the company plans to share with the investment community. The company clarified that the mater...
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.