Badger Meter, Inc.
Badger Meter, Inc. Fundamental Analysis
Badger Meter, Inc. (BMI) shows moderate financial fundamentals with a PE ratio of 32.99, profit margin of 15.45%, and ROE of 20.71%. The company generates $0.9B in annual revenue with strong year-over-year growth of 17.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BMI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBMI demonstrates superior asset utilization.
Valuation Score
WeakBMI trades at a premium to fair value.
Growth Score
ExcellentBMI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBMI maintains a strong and stable balance sheet.
Profitability Score
ExcellentBMI achieves industry-leading margins.
Key Financial Metrics
Is BMI Expensive or Cheap?
P/E Ratio
BMI trades at 32.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BMI's PEG of 17.34 indicates potential overvaluation.
Price to Book
The market values Badger Meter, Inc. at 6.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.14 times EBITDA. This signals the market has high growth expectations.
How Well Does BMI Make Money?
Net Profit Margin
For every $100 in sales, Badger Meter, Inc. keeps $15.45 as profit after all expenses.
Operating Margin
Core operations generate 20.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.71 in profit for every $100 of shareholder equity.
ROA
Badger Meter, Inc. generates $14.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Badger Meter, Inc. produces operating cash flow of $184.29M, showing steady but balanced cash generation.
Free Cash Flow
Badger Meter, Inc. generates strong free cash flow of $170.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.78 in free cash annually.
FCF Yield
BMI converts 3.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How BMI Stacks Against Its Sector Peers
| Metric | BMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.99 | 35.19 | Neutral |
| ROE | 20.71% | 1155.00% | Weak |
| Net Margin | 15.45% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 3.36 | 4.71 | Strong Liquidity |
| ROA | 14.55% | -314918.00% (disorted) | Strong |
BMI outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Badger Meter, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.48%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
161.88%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
89.93%
Industry Style: Growth, Innovation, High Beta
High Growth