Badger Meter Inc

BMI

Totalizing Fluid Meters & Counting Devices

Mkt Cap

$5.748B

PE

56.18

Debt

Cash

$199.3M

EV

FCF

$103.2M

Market Cap

$5.748B

P/E Ratio

56.18

Debt

Cash

$199.3M

EV

FCF

$103.2M

Charts data: {"Earnings":[{"time":"2014-12-30","value":29678000},{"time":"2015-12-30","value":25938000},{"time":"2016-12-30","value":32295000},{"time":"2017-12-30","value":34571000},{"time":"2018-12-30","value":27790000},{"time":"2019-12-30","value":47177000},{"time":"2020-12-30","value":49343000},{"time":"2021-12-30","value":60884000},{"time":"2022-12-30","value":66496000},{"time":"2023-12-30","value":92598000}],"Sales":[{"time":"2014-12-30","value":364768000},{"time":"2015-12-30","value":377698000},{"time":"2016-12-30","value":393761000},{"time":"2017-12-30","value":402440000},{"time":"2018-12-30","value":433732000},{"time":"2019-12-30","value":424625000},{"time":"2020-12-30","value":425544000},{"time":"2021-12-30","value":505198000},{"time":"2022-12-30","value":565568000},{"time":"2023-12-30","value":703592000}],"Net Margins":[{"time":"2014-12-30","value":0.08136130362312484},{"time":"2015-12-30","value":0.06867391407950267},{"time":"2016-12-30","value":0.08201675635728271},{"time":"2017-12-30","value":0.08590348871881523},{"time":"2018-12-30","value":0.06407182315346804},{"time":"2019-12-30","value":0.1111027377097439},{"time":"2020-12-30","value":0.11595275694170286},{"time":"2021-12-30","value":0.12051512476296422},{"time":"2022-12-30","value":0.11757383727509335},{"time":"2023-12-30","value":0.1316075225414729}],"Assets":[{"time":"2014-12-30","value":341158000},{"time":"2015-12-30","value":355480000},{"time":"2016-12-30","value":349699000},{"time":"2017-12-30","value":391727000},{"time":"2018-12-30","value":392691000},{"time":"2019-12-30","value":421893000},{"time":"2020-12-30","value":468380000},{"time":"2021-12-30","value":530818000},{"time":"2022-12-30","value":603047000},{"time":"2023-12-30","value":716919000}],"Stockholders Equity":[{"time":"2014-12-30","value":214331000},{"time":"2015-12-30","value":232275000},{"time":"2016-12-30","value":256209000},{"time":"2017-12-30","value":277452000},{"time":"2018-12-30","value":303503000},{"time":"2019-12-30","value":331068000},{"time":"2020-12-30","value":361259000},{"time":"2021-12-30","value":403070000},{"time":"2022-12-30","value":442422000},{"time":"2023-12-30","value":516482000}],"ROE":[{"time":"2014-12-30","value":0.13846807041445242},{"time":"2015-12-30","value":0.11166935744268647},{"time":"2016-12-30","value":0.12604943620247533},{"time":"2017-12-30","value":0.12460173291235961},{"time":"2018-12-30","value":0.0915641690526947},{"time":"2019-12-30","value":0.14249942609977406},{"time":"2020-12-30","value":0.13658621653716585},{"time":"2021-12-30","value":0.15105068598506463},{"time":"2022-12-30","value":0.15029993987640758},{"time":"2023-12-30","value":0.1792860157759612}],"ROA":[{"time":"2014-12-30","value":0.13497265196770997},{"time":"2015-12-30","value":0.1191881399797457},{"time":"2016-12-30","value":0.14516770136603194},{"time":"2017-12-30","value":0.14199174425046016},{"time":"2018-12-30","value":0.14481869969008712},{"time":"2019-12-30","value":0.14730749265809104},{"time":"2020-12-30","value":0.13910927025065117},{"time":"2021-12-30","value":0.14830506878063668},{"time":"2022-12-30","value":0.14545632429976435},{"time":"2023-12-30","value":0.17012521637730343}]}

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. In addition, the company offers ORION (SE) for traditional fixed network applications; and ORION Cellular for utility-owned fixed network infrastructure, as well as BEACON, 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. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, industrial, and other industries. It sells its products directly, as well as through resellers and representatives. Badger Meter, Inc. was incorporated in 1905 and is based in Milwaukee, Wisconsin.

Sector

10-Q
9/30/23
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10-K
12/31/22
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3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Badger Meter Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$103.2M	$121.6M	$141.5M	$162.7M	$184.7M	$207M	$229.2M	$250.4M	$270.1M	$287.4M	$301.8M	$3.018B
DCF		$105.7M	$107M	$107M	$105.6M	$102.9M	$99.08M	$94.15M	$88.29M	$81.7M	$74.6M	$746M
Value	$1.712B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 15%

Earnings Stability 88%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	6.9%	8.2%	8.6%	6.4%	11%	12%	12%	12%	13%	14%
ROA	12%	15%	14%	14%	15%	14%	15%	15%	17%	18%
ROE	11%	13%	12%	9.2%	14%	14%	15%	15%	18%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.01%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +14.92%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.37%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +14.19%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.36%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	4.44	0.83	1.28	0.35	0.06	0.00	0.00	0.00	0.00	-
Debt Equity	0.31	0.15	0.16	0.06	0.01	0.00	0.00	0.00	0.00	-
MIN
Graham Stability	-	-	100%	90%	100%	100%	100%	100%	100%	90%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.06.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.90.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	8.6%	10%	18%	24%	2.2%
Net Income	16%	27%	23%	39%	3.6%
Stockholders Equity	11%	11%	13%	17%	0.64%
FCF	12%	14%	6.8%	28%	-5.3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.16%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +27.22%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.64%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.22%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.64%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +13.67%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -5.33%.