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Badger Meter
(NYSE:BMI)
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Rating:78Outperform
Price Target:
$171.00
▲(25.40% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong financial quality (debt-free balance sheet, solid margins, and consistent free cash flow) and a generally constructive earnings call with continued margin strength and Q4 growth expectations. These positives are tempered by a rich valuation (P/E ~30.8 with a modest yield) and technically overbought conditions (RSI ~74, Stoch ~80), alongside guidance for low-single-digit organic decline and continued component/inventory pressures.
Positive Factors
Debt-free balance sheet and cash generation
A debt-free balance sheet materially reduces refinancing and interest-rate exposure, preserving flexibility through business cycles. Strong operating and free cash flow also supports internal investment, acquisitions, dividends, and buybacks without requiring leverage.
Negative Factors
Organic revenue contraction
A full-year organic sales decline indicates that current demand and project timing are not yet translating into broad-based growth. Prolonged contraction could limit operating leverage, slow investment returns, and make the path to the company’s high-single-digit growth ambition less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet and cash generation
A debt-free balance sheet materially reduces refinancing and interest-rate exposure, preserving flexibility through business cycles. Strong operating and free cash flow also supports internal investment, acquisitions, dividends, and buybacks without requiring leverage.
Read all positive factors
Badger Meter (BMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.45B
Dividend Yield1.05%
Average Volume (3M)455.67K
Price to Earnings (P/E)35.9
Beta (1Y)0.54
Revenue Growth-2.21%
EPS Growth-7.84%
CountryUS
Employees2,477
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.35
Shares Outstanding28,986,847
10 Day Avg. Volume502,994
30 Day Avg. Volume455,673
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 Cap0.79
Enterprise Value/Revenue3.97
Enterprise Value/Gross Profit9.54
Enterprise Value/Ebitda17.49
Forecast
1Y Price Target
$165.29Price Target Upside21.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.43
Revenue Forecast (FY)$901.39M
Badger Meter Business Overview & Revenue Model
Company Description
Badger Meter, Inc. (BMI) provides a comprehensive range of solutions for flow measurement, quality assessment, control, and communication. Operating globally, the company serves markets across North America, Europe, Asia, and the Middle East. For ...
How the Company Makes Money
Badger Meter makes money primarily by selling flow measurement and related monitoring solutions to customers, with revenue generated across two main streams: (1) product sales and (2) software and services. Product revenue includes the sale of mec...
Badger Meter Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was predominantly optimistic. The company delivered stronger profitability, margin expansion, sequential base sales growth, successful commercial launches, robust customer and project pipeline commentary, and continued shareholder returns. These positives outweighed the year-over-year base sales decline, expected low-single-digit full-year organic revenue decline, lower free cash flow, elevated inventory, uneven project timing, and escalating electronic component pressures.Positive Updates
Sequential Base Sales Growth
Third-quarter base sales increased 5% sequentially from the second quarter, driven by the ongoing ramp of previously awarded projects, including another quarter of process shipments, and solid underlying market demand.
Negative Updates
Flat Total Sales and Lower Base Sales Year-over-Year
Third-quarter total sales were $235.9 million, in line with the third quarter of 2025. Excluding $5.6 million of UDlive sales, base sales declined 2% year-over-year.
Read all updates
Q3-2026 Updates
Positive
Negative
Sequential Base Sales Growth
Third-quarter base sales increased 5% sequentially from the second quarter, driven by the ongoing ramp of previously awarded projects, including another quarter of process shipments, and solid underlying market demand.
Read all positive updates
Company Guidance
For Q4 2026, Badger Meter expects both year-over-year and sequential quarterly base sales growth despite 5% fewer workdays, with sequential growth described as “modestly up”; full-year 2026 organic sales are expected to be “down low single digits.” The company remains committed to sustaining growth momentum into 2027 and returning to its strategic growth horizon of “high single digits,” although it is “not going to peg a year.” Management expects to operate within the 39%-42% gross margin range, anticipates UDlive intangible asset amortization of approximately $5 million annually, and remains focused on free cash flow conversion in excess of 100% of net earnings.Badger Meter Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 881.24M | 916.66M | 826.56M | 703.59M | 565.57M | 505.20M |
| Gross Profit | 366.94M | 382.07M | 329.18M | 276.44M | 219.97M | 205.48M |
| EBITDA | 200.01M | 223.24M | 190.12M | 146.03M | 113.41M | 106.47M |
| Net Income | 126.53M | 141.63M | 124.94M | 92.60M | 66.50M | 60.88M |
Balance Sheet | ||||||
| Total Assets | 943.65M | 973.58M | 816.41M | 716.92M | 603.05M | 530.82M |
| Cash, Cash Equivalents and Short-Term Investments | 67.93M | 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 | 292.52M | 260.28M | 210.18M | 200.44M | 160.63M | 127.75M |
| Stockholders Equity | 651.13M | 713.29M | 606.23M | 516.48M | 442.42M | 403.07M |
Cash Flow | ||||||
| Free Cash Flow | 142.29M | 169.67M | 142.22M | 98.11M | 76.56M | 80.76M |
| Operating Cash Flow | 158.58M | 183.70M | 155.03M | 110.12M | 82.45M | 87.51M |
| Investing Cash Flow | -110.21M | -198.05M | -15.82M | -29.13M | -5.89M | -51.42M |
| Financing Cash Flow | -181.55M | -57.98M | -35.10M | -28.09M | -24.61M | -20.51M |
Badger Meter Technical Analysis
Positive
136.36
Price Trends
131.03
Positive
133.82
Positive
138.40
Positive
Market Momentum
4.39
Negative
78.00
Negative
92.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMI, the sentiment is Positive. The current price of 136.36 is above the 20-day moving average (MA) of 131.34, above the 50-day MA of 131.03, and below the 200-day MA of 138.40, indicating a bullish trend. The MACD of 4.39 indicates Negative momentum. The RSI at 78.00 is Negative, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $12.28B | 32.09 | 18.56% | 0.63% | 17.13% | 23.21% | |
78 Outperform | $4.45B | 35.85 | 18.49% | 1.05% | -2.21% | -7.84% | |
78 Outperform | $8.18B | 29.89 | 17.09% | 0.94% | 10.69% | 60.92% | |
73 Outperform | $4.36B | 28.17 | 11.59% | 1.14% | 7.38% | -10.43% | |
69 Neutral | $3.51B | 15.71 | 21.21% | 1.29% | 5.88% | 49.15% | |
68 Neutral | $25.27B | 25.77 | 9.17% | 1.56% | 4.41% | 9.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BMI
Badger Meter
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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.