BMI

Badger Meter

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Scientific & Technical Instruments

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/17/26

Business Summary

BMI generates cash by manufacturing and selling high-precision measurement and flow instrumentation used in utility and industrial applications. The business benefits from recurring infrastructure demand, where installed equipment often requires long-term servicing, upgrades, and replacements, creating embedded customer relationships. Its moat stems from engineering reliability, regulatory compliance requirements, and the high switching costs associated with mission-critical measurement accuracy. Strong operating margins and high returns on invested capital indicate that once deployed, its products command pricing power and sustain attractive incremental economics.

VALUATION

P/E

32.4

Market Cap ($M USD)

$4,529

Forward P/E

27.9

PEG

1.8

PRICE TO SALES

5

PRICE TO BOOK

6.4

EV / EBITDA

19.7

5-Year Average P/E

DIVIDEND

Yield

1.00%

Annual Payout

$1.54

Payout Ratio

30.70%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

17.30%

Financial Health & Profitability

Earnings Per Share

$4.82

Next Year EPS Growth Estimate

$5.56

Next Year Revenue Growth Estimate

7.40%

Return on Equity (ROE)

19.90%

Operating Margin

20.00%

Debt-to-Equity

0

Piotroski F-Score

6

Altman Z-Score

13.4

Return on Invested Capital (ROIC)

20.90%%

Current Ratio

3.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 32.4x earnings and 27.9x forward earnings, the market is pricing BMI as a quality compounder rather than a cyclical instrument name, and the 1.8 forward PEG confirms investors are paying a premium for expected growth. However, a 13.4 Altman Z-Score signals extremely low bankruptcy risk, and a 3.4 current ratio reinforces balance sheet stability. With ROIC at 20.90% and operating margins at 19.90%, this is a capital-efficient operator, but the valuation leaves limited room for execution error. This is not statistically cheap; it is a quality franchise priced for continued precision execution rather than turnaround upside.

AI Exposure / Tech Reliance

As a Scientific & Technical Instruments company operating in the Technology sector, BMI sits in a segment that directly benefits from automation, digitization, and infrastructure modernization. Instrumentation businesses are increasingly integrated with data analytics and intelligent monitoring systems, positioning the company to remain relevant as AI-driven efficiency tools expand. The durability of demand in measurement and control systems makes it more resilient than speculative tech segments.

The Bull Case

A GARP investor buys this because 20.90% ROIC combined with a 19.90% operating margin is a rare pairing in industrial-tech hybrids, indicating strong pricing power and disciplined capital allocation. The Piotroski F-Score of 6 suggests operational stability without signaling distress, while a modest 20.00% debt-to-equity ratio keeps leverage risk contained. Institutional participation appears significant, and a 3.4 current ratio provides liquidity cushion. The company is not cheap on earnings, but high returns on capital and consistent profitability justify a premium multiple for investors seeking durable compounders rather than deep value plays.

The Bear Case

The red flags are valuation compression risk and sentiment fragility. A 1.8 PEG ratio implies growth expectations are already embedded, and with 17.30% of float sold short, a meaningful portion of the market is skeptical of forward performance. Price-to-book at 6.4 and price-to-sales at 5 leave little asset-based downside protection if growth decelerates. While leverage is moderate, any deterioration in margins or return on equity at 7.40% could quickly challenge the premium multiple and trigger multiple contraction.

Market Sentiment & Smart Money

Short Interest %

13.80%

Analyst Consensus

2.15

Average Analyst Price Target

$188.00

Institutional Ownership %

106.00%

1-Year Beta

1.04

Insider Buying % (6 Mo)

0.60%%

Distance to 52-Week High

60.60%%

Distance to 52-Week Low

111.60%%