Badger Meter (BMI) AI Stock Analysis

Badger Meter

(BMV:BMI)

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Positive Factors

Debt-free balance sheet and cash generationA 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 contractionA 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.

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 mun...

Badger Meter Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|Next Earnings Date:Jan 21, 2027

Earnings Call SentimentPositive

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.

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 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.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

0 New Risks

Badger Meter Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

MX:BMI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	82Outperform	$11.60B	30.33	18.56%	0.66%	17.13%	23.21%
MWA	72Outperform	$3.56B	15.94	21.21%	1.23%	5.88%	49.15%
ZWS	72Outperform	$7.40B	25.75	17.71%	0.98%	10.06%	53.01%
FELE	69Neutral	$4.21B	21.20	14.50%	1.16%	7.28%	45.11%
XYL	60Neutral	$21.19B	20.44	9.96%	1.83%	1.82%	16.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

MX:BMI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FELE	Franklin Electric	95.38	2.75	2.97%
MWA	Mueller Water Products	22.79	-2.75	-10.76%
ZWS	Zurn Water Solutions Corporation	44.80	-1.65	-3.55%
WTS	Watts Water	347.60	74.89	27.46%
XYL	Xylem Inc	92.40	-55.22	-37.41%

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.

Badger Meter AI Stock Analysis