Badger Meter, Inc.
BMI
$115.54
-24.13%
Badger Meter, Inc. is a provider of water management solutions in the Hardware, Equipment & Parts industry. The company is an innovator in flow measurement and water quality products, serving utilities and municipalities globally.
BMI
Badger Meter, Inc.
$115.54
Related headlines
Investment Opinion: Should I buy BMI Today?
Based on a synthesis of the data, the objective assessment leans towards Hold. The company's impeccable balance sheet and operational excellence are compelling for the long term. However, the current premium valuation, technical downtrend, and signs of slowing growth momentum suggest the stock may face continued pressure in the near term. Investors should wait for either a more attractive valuation entry point (closer to the 52-week low) or clearer signs of re-accelerating growth before establishing new positions.
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BMI 12-Month Price Forecast
The strong fundamental health is offset by rich valuation and negative price momentum. The base case of range-bound trading is most probable, with the stock needing to demonstrate renewed growth to justify a higher multiple.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Badger Meter, Inc.'s 12-month outlook, with a consensus price target around $150.20 and implied upside of +30.0% versus the current price.
Average Target
$150.20
3 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
3
covering this stock
Price Range
$92 - $150
Analyst target range
Wall Street analyst coverage for Badger Meter is limited, with only three analysts providing estimates. The consensus estimated EPS for the period is $7.15, with a range from $6.62 to $7.42, and estimated revenue is $1.21 billion. Recent institutional ratings show a mix of opinions, including Buy/Overweight ratings from firms like Jefferies, Stifel, and RBC Capital, an Underweight from Barclays, and a Hold from Argus Research, but a specific consensus target price is not available from the provided data.
Bulls vs Bears: BMI Investment Factors
Badger Meter presents a classic value vs. momentum conflict. The company's fundamentals are rock-solid with no debt, strong cash flow, and good profitability. However, the stock is in a severe downtrend, trades at a premium valuation, and shows signs of slowing growth. The current price, near its 52-week low, may offer a long-term entry point for patient investors, but near-term headwinds persist.
Bullish
- Exceptional Financial Health: Zero debt, strong current ratio of 3.36, and robust free cash flow.
- Strong Profitability Metrics: Net margin of 15.3%, ROE of 19.9%, and ROA of 12.8%.
- Positive Revenue Growth: Q4 2025 revenue grew 7.6% year-over-year.
- Analyst Support: Multiple firms (Jefferies, Stifel, RBC) maintain Buy/Overweight ratings.
Bearish
- Premium Valuation: High trailing P/E of 36.2 and forward P/E of 26.6.
- Slowing Growth Momentum: Sequential revenue decline from Q3 to Q4 2025.
- Pronounced Price Downtrend: Stock down 16.9% over 6 months, underperforming the market.
- Limited Analyst Coverage: Only 3 analysts provide estimates, reducing consensus confidence.
BMI Technical Analysis
The stock has been in a pronounced downtrend over the past six months, with the price falling from around $180 in October 2025 to approximately $148 by March 2026, representing a 16.9% decline. Short-term performance shows continued pressure, with the stock down 2.8% over the past month and 16.9% over the past three months, underperforming the broader market as indicated by negative relative strength figures. The current price of $148.10 is positioned much closer to its 52-week low of $139.14 than its high of $256.08, indicating the stock is in a deeply oversold territory within its annual range.
Beta
0.90
0.90x market volatility
Max Drawdown
-54.5%
Largest decline past year
52-Week Range
$115-$256
Price range past year
Annual Return
-42.7%
Cumulative gain past year
| Period | BMI Return | S&P 500 |
|---|---|---|
| 1m | -21.9% | +7.4% |
| 3m | -32.7% | +2.7% |
| 6m | -35.8% | +6.9% |
| 1y | -42.7% | +34.9% |
| ytd | -34.5% | +4.1% |
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BMI Fundamental Analysis
Revenue growth has been positive but slowing, with Q4 2025 revenue of $220.7 million representing 7.6% year-over-year growth, though it declined sequentially from Q3's $235.7 million. Profitability remains healthy with a net margin of 15.3% in the latest quarter, supported by a gross margin of 42.1%. The company exhibits exceptional financial health with zero debt (debt-to-equity ratio of 0) and a strong current ratio of 3.36, complemented by robust free cash flow generation of $169.7 million on a trailing twelve-month basis. Operational efficiency is solid, with a Return on Equity (ROE) of 19.9% and Return on Assets (ROA) of 12.8%, indicating effective use of shareholder capital and company assets.
Quarterly Revenue
$220706000.0B
2025-12
Revenue YoY Growth
+0.07%
YoY Comparison
Gross Margin
+0.42%
Latest Quarter
Free Cash Flow
$169672000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is BMI Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio stands at 36.2, while the forward P/E is 26.6, suggesting the market anticipates future earnings growth. Other valuation metrics appear elevated, with a Price-to-Sales (P/S) ratio of 5.59 and an EV/EBITDA of 22.0, indicating a premium valuation relative to sales and operating profit. No industry average comparison data was provided in the valuation inputs for a peer assessment.
PE
36.2x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 35x~52x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
22.0x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is valuation compression. With a trailing P/E of 36.2 and forward P/E of 26.6, the stock is priced for significant growth. Any earnings disappointment or sector de-rating could lead to further multiple contraction, as evidenced by the recent sharp price decline from over $180 to ~$148. The high short ratio of 7.8 signals that a large portion of the market is betting on this outcome.
Operational risks include the sequential decline in revenue from Q3 to Q4 2025, suggesting potential demand softness or competitive pressures in its water management solutions market. While the company serves essential utilities, its growth is tied to municipal spending and infrastructure investment cycles, which can be volatile. The stock's high beta of 0.92, while slightly defensive, does not fully insulate it from broader market downturns, as seen in its significant underperformance versus the S&P 500 over the past year.
Finally, limited Wall Street coverage (only 3 analysts) reduces liquidity of information and can lead to higher price volatility. The mix of analyst ratings—from Buy to Underweight—highlights the lack of consensus on the stock's near-term direction, adding to investor uncertainty.
