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Badger Meter (BMI)
NYSE:BMI
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Badger Meter
(NYSE:BMI)
Rating:79Outperform
Price Target:―
Positive Factors
Revenue Growth
Sustained revenue growth indicates strong demand for Badger Meter's products, suggesting effective market penetration and product adoption.
Operating Margins
Record operating margins reflect efficient cost management and pricing strategies, enhancing long-term profitability and competitive advantage.
Cash Flow Management
Strong cash flow growth supports reinvestment and shareholder returns, indicating robust financial health and operational efficiency.
Negative Factors
Flow Instrumentation Sales Decline
Declining sales in flow instrumentation suggest challenges in specific market segments, potentially impacting overall revenue diversification.
Tariff and Supply Chain Concerns
Tariff and supply chain issues could increase costs and disrupt operations, posing risks to margins and supply reliability.
Increased SEA Expenses
Rising SEA expenses, partly due to acquisitions, may pressure profitability if not offset by revenue growth or cost efficiencies.
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.24B
Dividend Yield0.8%
Average Volume (3M)313.64K
Price to Earnings (P/E)38.7
Beta (1Y)0.90
Revenue Growth11.82%
EPS Growth20.01%
CountryUS
Employees2,210
SectorTechnology
Sector Strength87
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.17
Shares Outstanding29,468,807
10 Day Avg. Volume319,653
30 Day Avg. Volume313,643
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue8.10
Enterprise Value/Gross Profit19.68
Enterprise Value/Ebitda35.38
Forecast
1Y Price Target
$239.17Price Target Upside34.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales growth, successful integration of SmartCover, and gross margin expansion, tempered by increased SEA expenses, operating margin decline, expected sequential sales decline, and trade uncertainties.Q2-2025 Updates
Positive Updates
Record Sales Growth
Total sales increased 10% year-over-year to $238 million, with utility water product line sales up 11% year-over-year.
Gross Margin Expansion
Gross margins expanded to 41.1%, an increase of 170 basis points from the prior year's 39.4%.
Successful SmartCover Integration
SmartCover sales contributed significantly in its first full quarter under ownership, with promising integration and market response.
Free Cash Flow Increase
Free cash flow increased 19% year-over-year to $40.6 million.
Launch and Growth of BlueEdge
The BlueEdge suite has shown meaningful momentum and elevated the company's reputation as a trusted partner.
Negative Updates
Operating Margin Decline
Operating margins decreased by 40 basis points to 18.8% from the previous year's 19.2%.
Increased SEA Expenses
SEA expenses rose by $9.1 million year-over-year due to SmartCover acquisition and higher personnel costs.
Sequential Sales Decline Expected
Company anticipates a decline in absolute sales sequentially in the third quarter of 2025 due to the timing of AMI projects.
Tariff and Trade Uncertainty
Ongoing trade uncertainties and tariff impacts, especially concerning copper, present challenges.
Company Guidance
During the Badger Meter Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong financial performance with a 10% year-over-year sales growth, or 5% excluding the SmartCover acquisition. Sales reached $238 million, and utility water product line sales increased by 11% year-over-year. Gross margins expanded by 170 basis points to 41.1%, though they experienced a sequential decline from the first quarter's 42.9%. Operating earnings rose by 8% to $44.9 million, with operating margins slightly down by 40 basis points to 18.8%. Free cash flow saw a robust 19% increase to $40.6 million, and consolidated EPS improved to $1.17 from $1.12 in the prior year. The income tax provision increased to 24.5% from 23.8% the previous year. The company maintained its normalized gross margin range of 38% to 40%, citing ongoing tariff-related uncertainties. Looking forward, Badger Meter expects sales to decline sequentially in the third quarter but still anticipates year-over-year growth, excluding SmartCover, with continued conviction in high single-digit revenue growth over the long term.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 | 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
Negative
177.80
Price Trends
199.51
Negative
218.73
Negative
213.30
Negative
Market Momentum
-5.08
Negative
35.69
Neutral
37.10
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 177.8 is below the 20-day moving average (MA) of 183.75, below the 50-day MA of 199.51, and below the 200-day MA of 213.30, indicating a bearish trend. The MACD of -5.08 indicates Negative momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 37.10 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.24B | 25.05 | 11.58% | ― | 5.87% | 20.66% | |
79 Outperform | $5.24B | 38.72 | 21.88% | 0.80% | 11.82% | 20.01% | |
79 Outperform | $4.83B | 52.49 | 5.89% | ― | 14.24% | 424.78% | |
76 Outperform | $5.38B | 46.92 | 9.01% | 0.15% | 10.65% | 15.22% | |
74 Outperform | $5.47B | 20.42 | 18.92% | ― | 3.90% | 44.95% | |
72 Outperform | $3.95B | 27.00 | 16.49% | ― | 11.33% | 18.47% | |
61 Neutral | $36.85B | 12.13 | -10.22% | 1.85% | 8.52% | -7.53% |
* Technology Sector Average
Performance Comparison
BMI
Badger Meter
177.80
-32.56
-15.48%
ESE
Esco Technologies
208.28
87.89
73.00%
ITRI
Itron
119.54
16.13
15.60%
OSIS
OSI Systems
234.80
89.93
62.08%
SANM
Sanmina-Sci
117.03
49.46
73.20%
TTMI
TTM Technologies
46.77
28.56
156.84%
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.