Badger Meter (BMI)
NYSE:BMI
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Badger Meter
(NYSE:BMI)
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Rating:68Neutral
Price Target:
$134.00
▲(15.98% Upside)
Action:ReiteratedDate:04/29/26
The score is driven by strong underlying financial quality (high margins, solid cash conversion, and a debt-free balance sheet) and a reasonably constructive earnings-call setup (back-half weighted recovery, large AMI funnel, accretive acquisition). These positives are meaningfully offset by very weak technicals (clear downtrend across moving averages and negative MACD) and a high valuation multiple with only a modest dividend yield.
Positive Factors
Balance Sheet Health
Zero debt and a sizable equity base give the company lasting financial flexibility: ability to fund AMI deployments, opportunistic M&A (e.g., UDLive), and share buybacks without leverage. A strong ROE (~20.7%) signals efficient capital use that supports durable capital allocation choices.
Negative Factors
Near-term Revenue Weakness
A recent TTM revenue contraction and guidance for flat organic revenue signal a pause in top‑line growth. If project pacing or demand softness persists, it can reduce scale benefits, constrain reinvestment, and prolong reliance on cost actions to protect margins, weakening medium‑term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Zero debt and a sizable equity base give the company lasting financial flexibility: ability to fund AMI deployments, opportunistic M&A (e.g., UDLive), and share buybacks without leverage. A strong ROE (~20.7%) signals efficient capital use that supports durable capital allocation choices.
Read all positive factors
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.44B
Dividend Yield0.82%
Average Volume (3M)465.77K
Price to Earnings (P/E)40.7
Beta (1Y)0.71
Revenue Growth5.19%
EPS Growth-2.69%
CountryUS
Employees2,210
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.93
Shares Outstanding29,185,570
10 Day Avg. Volume739,745
30 Day Avg. Volume465,766
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 Cap0.94
Enterprise Value/Revenue3.61
Enterprise Value/Gross Profit8.72
Enterprise Value/Ebitda16.23
Forecast
1Y Price Target
$144.80Price Target Upside25.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.57
Revenue Forecast (FY)$909.84M
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 makes money primarily by selling hardware, software, and related services that enable customers—especially municipal and private water utilities—to measure and manage water usage and system performance.
Key revenue streams include:
-...
Badger Meter Earnings Call Summary
Earnings Call Date:Apr 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but controlled picture: near-term results were weaker than the prior year driven by project pacing and softer short-cycle orders, producing a notable revenue and EPS decline in Q1. Offsetting these negatives are strong cash generation, resilient gross margins, a sizable pipeline of awarded AMI projects (2.6M–3.6M connections), an accretive strategic acquisition (UDLive), and active cost discipline. Management framed Q1 as timing-related with a back-half weighted recovery expected, but acknowledged inherent timing and execution risks that temper visibility into short-cycle demand.Positive Updates
Strong Cash Generation and Capital Return
Generated approximately $30 million of free cash flow in Q1, in line with 2025. Repurchased 256,000 shares for $38 million and have $115 million remaining on the authorization.
Negative Updates
Revenue Decline in Q1
Total sales of $202 million, down 9% year over year; management attributed the shortfall to project pacing and weaker short-cycle orders (approximately $15 million to $20 million below internal expectations).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Cash Generation and Capital Return
Generated approximately $30 million of free cash flow in Q1, in line with 2025. Repurchased 256,000 shares for $38 million and have $115 million remaining on the authorization.
Read all positive updates
Company Guidance
Management said 2026 will be back‑half weighted and—excluding the $100M UDLive acquisition—expects full‑year organic revenue to be in line with 2025; Q1 sales were $202M (down 9% YoY), with roughly $15–20M of lower short‑cycle revenue versus expectations, and Q2 should sequentially improve from the Q1 trough but remain down year‑over‑year versus the company’s record quarter. Q1 gross margin was 41.7% (down 120 bps) and management still expects to operate within its 39–42% gross margin range for the year; Q1 operating earnings were ~$35.2M (operating margin 17.4% vs 22.2% prior), diluted EPS $0.93 (vs $1.30), effective tax rate 24.8%, primary working capital 20% of sales (down from 20.9% at year‑end), free cash flow ~ $30M, and 256k shares repurchased for $38M with $115M remaining authorization. They highlighted awarded AMI deployments representing 2.6–3.6M connections (vs ~800k in the prior cohort) and a PRASA PO with installations expected midyear; UDLive (TTM revenue ~ $22M, positive operating profit) is expected to close in April and be accretive to EPS in year one. To protect margin integrity they’ve implemented measured cost actions—including a 10% executive salary reduction for six months—and will maintain SEA discipline (SEA was $49.2M in Q1, up $3.1M YoY, with SEA % of sales deleveraging ~360 bps).Badger Meter Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 896.73M | 916.66M | 826.56M | 703.59M | 565.57M | 505.20M |
| Gross Profit | 370.96M | 382.07M | 329.18M | 276.44M | 219.97M | 205.48M |
| EBITDA | 199.34M | 223.24M | 190.12M | 146.03M | 113.41M | 106.47M |
| Net Income | 130.57M | 141.63M | 124.94M | 92.60M | 66.50M | 60.88M |
Balance Sheet | ||||||
| Total Assets | 970.81M | 973.58M | 816.41M | 716.92M | 603.05M | 530.82M |
| Cash, Cash Equivalents and Short-Term Investments | 205.45M | 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 | 280.38M | 260.28M | 210.18M | 200.44M | 160.63M | 127.75M |
| Stockholders Equity | 690.43M | 713.29M | 606.23M | 516.48M | 442.42M | 403.07M |
Cash Flow | ||||||
| Free Cash Flow | 169.08M | 169.67M | 142.22M | 98.11M | 76.56M | 80.76M |
| Operating Cash Flow | 184.56M | 183.70M | 155.03M | 110.12M | 82.45M | 87.51M |
| Investing Cash Flow | -14.57M | -198.05M | -15.82M | -29.13M | -5.89M | -51.42M |
| Financing Cash Flow | -97.81M | -57.98M | -35.10M | -28.09M | -24.61M | -20.51M |
Badger Meter Technical Analysis
Negative
115.54
Price Trends
151.87
Negative
162.26
Negative
175.69
Negative
Market Momentum
-1.96
Positive
23.54
Positive
23.58
Neutral
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 115.54 is below the 20-day moving average (MA) of 151.68, below the 50-day MA of 151.87, and below the 200-day MA of 175.69, indicating a bearish trend. The MACD of -1.96 indicates Positive momentum. The RSI at 23.54 is Positive, neither overbought nor oversold. The STOCH value of 23.58 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $8.07B | 44.07 | 21.34% | 0.16% | 14.09% | 19.32% | |
75 Outperform | $14.28B | 41.17 | 10.61% | ― | 18.98% | 211.82% | |
70 Outperform | $11.18B | 18.96 | 7.33% | ― | 44.48% | 8.59% | |
69 Neutral | $3.67B | 18.75 | 17.44% | ― | -3.99% | 14.06% | |
68 Neutral | $3.44B | 40.71 | 18.76% | 0.82% | 5.19% | -2.69% | |
68 Neutral | $4.64B | 27.58 | 16.91% | ― | 8.96% | 14.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BMI
Badger Meter
120.91
-101.41
-45.61%
ESE
Esco Technologies
323.95
162.92
101.17%
ITRI
Itron
83.80
-24.25
-22.44%
OSIS
OSI Systems
286.92
62.59
27.90%
SANM
Sanmina-Sci
217.82
139.31
177.44%
TTMI
TTM Technologies
158.22
134.87
577.60%
Badger Meter Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Badger Meter Tightens Bylaws and Confirms Board Leadership
Positive
Apr 28, 2026
On April 24, 2026, Badger Meter’s board approved an amended and restated set of by-laws that tighten governance around shareholder meetings, especially those held solely by remote communication, and expand disclosure and advance-notice requi...
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.