Badger Meter (BMI) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 0.82%
• Average Volume (3M): 339.92K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.89
• Revenue Growth: 12.11%
• EPS Growth: 16.45%
• Country: US
• Employees: 2,210
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.14
• Shares Outstanding: 29,469,786
• 10 Day Avg. Volume: 602,262
• 30 Day Avg. Volume: 339,923
• PEG Ratio: 2.75
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 5.59
• P/FCF Ratio: 27.91
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.44
• Enterprise Value/Gross Profit: 10.66
• Enterprise Value/Ebitda: 18.36
• 1Y Price Target: $181.67
• Price Target Upside: 24.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.11
• Revenue Forecast (FY): $965.52M

• Rating: 72 Outperform
• Price Target: $182.00 ▲(24.39% Upside)

The score is driven by very strong financial performance (high margins, debt-free balance sheet, and solid free cash flow) and a generally positive earnings outlook (multi-year growth targets, SmartCover accretion, and the PRASA win). These strengths are tempered by weak technical conditions (below key moving averages with negative MACD) and a relatively expensive valuation (P/E ~37 with a low dividend yield).

Positive Factors

Balance Sheet Strength

Zero total debt and rising equity provide durable financial flexibility to fund capex, M&A, repurchases, and dividends without external financing. Robust ROE (~21%) shows efficient capital use, lowering insolvency risk and enabling steady strategic investment through business cycles.

Cash Generation and Conversion

Consistent, high free cash flow and conversion above earnings underpin sustainable capital allocation: funds operations, integration of acquisitions like SmartCover, and supports dividends and buybacks. Strong cash flow reduces dependency on external funding and enhances resilience to cyclical slowdowns.

Growing Software & AMI Platform

Expanding software and integrated AMI offerings increase recurring revenue, customer stickiness, and higher-margin mix. SmartCover extends addressable market across sewer/stormwater; the PRASA award validates scale capability and creates multi-year revenue runway, strengthening long-term competitive positioning.

Negative Factors

Slowing Recent Revenue Growth

A marked deceleration to ~3.1% TTM growth, versus prior multi-year gains, reduces visibility and challenges the company’s ability to meet high-single-digit medium‑term targets. Slower base growth limits operating leverage and prolongs the time to scale higher-margin software and solution sales.

Revenue Timing & Project Pacing Risk

Large AMI and turnkey contracts drive long-term backlog but create durable lumpiness and timing uncertainty. Project pacing can push revenue and margin recognition across years, complicating forecasting, working-capital planning, and near-term margin accretion despite ultimately being profitable.

Commodity, Tariff and Manufacturing Cost Pressure

Ongoing tariff volatility and higher copper/Bi-alloy input costs are structural headwinds to gross margins. Buy‑American manufacturing requirements (Racine routing for PRASA) can raise production costs versus lower-cost locations, constraining margin sustainability absent price recovery or cost reductions.

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 related radio and software technologies and services to municipal water utilities. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, oil, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. In addition, the company offers ORION Migratable for automatic meter reading; ORION (SE) for traditional fixed network applications; and ORION Cellular for infrastructure-free fixed network meter reading solution, as well as BEACON advanced metering analytics, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. It also serves water utilities, industrial, and other industries. The company sells its products directly, as well as through resellers and representatives. Badger Meter, Inc. was incorporated in 1905 and is headquartered in Milwaukee, Wisconsin.

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 municipalities manage water distribution efficiently. Key revenue streams include direct sales to utility companies, which account for a significant portion of its income, as well as sales to industrial customers for flow control applications. Additionally, the company benefits from recurring revenue through maintenance services and software solutions that facilitate data analytics and system integration. Strategic partnerships with utility providers and technology firms also enhance Badger Meter's market presence and contribute to its earnings by expanding its product offerings and reach.

Badger Meter Financial Statement Overview

Summary

High-quality fundamentals: strong profitability (TTM gross margin ~41%, net margin ~15%, EBIT margin ~20%), robust balance sheet with zero debt and rising equity, and solid free-cash-flow generation (TTM FCF ~$166M; ~0.92x net income). Main risks are moderating latest TTM revenue growth (~3.1%) and some historical cash-flow variability from working-capital timing.

Income Statement

BMI shows a strong and improving earnings profile. Revenue has grown meaningfully over the last several years (from $426M in 2020 to $827M in 2024, and $901M in TTM (Trailing-Twelve-Months)), supported by healthy profitability: TTM gross margin ~41% and net margin ~15% with solid operating leverage (TTM EBIT margin ~20%). The main drawback is that the most recent growth rate shown for TTM (~3.1%) is much slower than the prior-year growth pace, suggesting a moderating top-line trajectory.

Balance Sheet

The balance sheet is exceptionally strong with zero total debt reported across periods, providing high financial flexibility and low balance-sheet risk. Equity has steadily increased (to ~$606M in 2024 and ~$703M in TTM (Trailing-Twelve-Months)), and returns on equity are robust (~21% in TTM), indicating strong capital efficiency. A minor limitation is that with no debt, the company is not using leverage to potentially enhance returns, but the overall risk profile remains very favorable.

Cash Flow

Cash generation is strong and consistent: free cash flow is high and growing (TTM free cash flow ~$166M; positive growth), and free cash flow runs close to net income (TTM ~0.92x), indicating good earnings quality. Operating cash flow also covers net income well in the most recent periods (TTM ~1.18x; 2024 ~1.31x). The key watch-out is periodic variability (e.g., operating cash flow below net income in 2022–2023), which can signal working-capital timing swings.

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

• Technical Analysis Sentiment: Negative
• Last Price: 146.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 146.31 is below the 20-day moving average (MA) of 162.49, below the 50-day MA of 172.45, and below the 200-day MA of 196.96, indicating a bearish trend. The MACD of -8.03 indicates Positive momentum. The RSI at 32.53 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMI.

Badger Meter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	76 Outperform	$9.94B	54.94	8.12%	―	17.88%	91.41%
ESE	73 Outperform	$6.06B	47.91	8.93%	0.16%	13.13%	24.02%
BMI	72 Outperform	$4.31B	30.54	21.47%	0.82%	12.11%	16.45%
SANM	71 Outperform	$7.96B	34.06	9.74%	―	7.40%	13.79%
ITRI	70 Outperform	$4.67B	17.91	16.93%	―	0.14%	14.12%
OSIS	68 Neutral	$4.17B	29.28	18.33%	―	9.37%	15.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Badger Meter Corporate Events

Badger Meter Announces Key Executive Appointments

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 – Chief Financial Officer and Treasurer. These appointments come with significant salary and incentive adjustments, reflecting the company’s strategic focus on leadership alignment and operational efficiency. Additionally, Badger Meter amended its Key Executive Employment Agreements to provide enhanced benefits and protections for its executives in the event of a change-in-control, underscoring the company’s commitment to retaining top talent and ensuring stability during potential transitions.

The most recent analyst rating on (BMI) stock is a Buy with a $235.00 price target. To see the full list of analyst forecasts on Badger Meter stock, see the BMI Stock Forecast page.