Thoughts on Badger Meter Following Q3 Results

Stifel raised its price target on Badger Meter (NYSE:BMI) to $200, up from $196, while keeping a Hold rating on the stock. The firm highlighted continued strong momentum in the adoption of advanced metering infrastructure (AMI), which remains a key secular growth driver for the company.

Despite recent tariff developments, management has reported minimal impact so far, though a more noticeable effect is expected in the second quarter of 2025. Notably, the company has yet to implement any pricing adjustments, suggesting confidence that potential cost increases will be manageable. The biggest exposure appears to be electronics sourced from China, though Badger’s Mexico facility largely meets USMCA requirements, which may help offset supply chain pressures.

Stifel raised its price target on Badger Meter (NYSE:BMI) to $200, up from $196, while keeping a Hold rating on the stock. The firm highlighted continued strong momentum in the adoption of advanced metering infrastructure (AMI), which remains a key secular growth driver for the company.

Despite recent tariff developments, management has reported minimal impact so far, though a more noticeable effect is expected in the second quarter of 2025. Notably, the company has yet to implement any pricing adjustments, suggesting confidence that potential cost increases will be manageable. The biggest exposure appears to be electronics sourced from China, though Badger’s Mexico facility largely meets USMCA requirements, which may help offset supply chain pressures.

Badger Meter, Inc. (NYSE:BMI) is a leading company in the manufacturing of flow measurement and control products, catering to water utilities, municipalities, and industrial customers. Competing within the water technology sector against companies like Xylem and IDEX Corporation, BMI has demonstrated a strong financial performance in its latest earnings report dated April 17, 2025.

BMI reported an Earnings Per Share (EPS) of $1.30, significantly exceeding the Zacks Consensus Estimate of $1.08 and marking a notable improvement from the previous year's EPS of $0.99. This achievement underscores the company's operational efficiency and adept cost management strategies.

Despite a revenue of $222.2 million that did not meet the anticipated $230.5 million, BMI still realized a 13% increase from the prior year's $196.3 million. This revenue growth signifies robust demand for BMI's offerings, although it fell short of analyst projections.

Operating earnings for BMI saw a 35% year-over-year increase, reaching $49.5 million. This was accompanied by a significant expansion in operating profit margins, which grew by 360 basis points to 22.2%, up from 18.6% in the previous year. Such margin improvement reflects BMI's successful cost management while enhancing profitability.

The company's current ratio is approximately 4.57, showcasing a strong capability to cover its short-term liabilities with its short-term assets. This robust financial metric indicates that BMI is well-positioned to fulfill its financial commitments, offering stability and confidence to its investors and stakeholders.

Badger Meter, Inc. (NYSE:BMI) is a leading company in the manufacturing of flow measurement and control products, catering to water utilities, municipalities, and industrial customers. Competing within the water technology sector against companies like Xylem and IDEX Corporation, BMI has demonstrated a strong financial performance in its latest earnings report dated April 17, 2025.

BMI reported an Earnings Per Share (EPS) of $1.30, significantly exceeding the Zacks Consensus Estimate of $1.08 and marking a notable improvement from the previous year's EPS of $0.99. This achievement underscores the company's operational efficiency and adept cost management strategies.

Despite a revenue of $222.2 million that did not meet the anticipated $230.5 million, BMI still realized a 13% increase from the prior year's $196.3 million. This revenue growth signifies robust demand for BMI's offerings, although it fell short of analyst projections.

Operating earnings for BMI saw a 35% year-over-year increase, reaching $49.5 million. This was accompanied by a significant expansion in operating profit margins, which grew by 360 basis points to 22.2%, up from 18.6% in the previous year. Such margin improvement reflects BMI's successful cost management while enhancing profitability.

The company's current ratio is approximately 4.57, showcasing a strong capability to cover its short-term liabilities with its short-term assets. This robust financial metric indicates that BMI is well-positioned to fulfill its financial commitments, offering stability and confidence to its investors and stakeholders.

• The consensus price target for Badger Meter, Inc. (NYSE: BMI) has gradually declined over the past year, indicating adjusted analyst expectations.
• Smart water meters industry growth is driven by the need for operational efficiencies and reduction of Non-Revenue Water (NRW), with Badger Meter being a key player.
• Argus Research analyst Kristina Ruggeri sets a price target of $218 for Badger Meter, amidst the company's upcoming first quarter 2025 earnings report.

Badger Meter, Inc. (NYSE: BMI) is a global leader in manufacturing and marketing flow measurement, quality, control, and communication solutions. Their products are essential in municipal water utilities and industries like water/wastewater, HVAC, and corporate sustainability. The company offers a diverse range of products, including mechanical and static water meters, flow instrumentation products, and advanced metering analytics.

The consensus price target for Badger Meter's stock has seen a gradual decline over the past year. Last month, the average price target was $196, down from $202.5 last quarter and $206.1 last year. This trend suggests that analysts have adjusted their expectations, possibly due to market conditions, company performance, or industry trends.

The smart water meters industry is growing rapidly, driven by the need for operational efficiencies in domestic water utilities with limited budgets. Smart meters help reduce Non-Revenue Water (NRW), which accounts for 30-35% of total water volume globally. Advanced Metering Infrastructure (AMI) technology is expected to grow significantly, as it lowers operational costs through better data communication.

Badger Meter is a key player in this market, alongside companies like Sensus and Landis+Gyr. The market is ripe with innovation, focusing on IoT and AI for real-time monitoring and sustainability in smart cities. The Asia Pacific region, led by infrastructure developments in China and India, is experiencing the highest compound annual growth rate (CAGR).

Argus Research analyst Kristina Ruggeri has set a price target of $218 for Badger Meter, indicating potential earnings growth. However, the company may not have the optimal combination of factors for an earnings beat. Badger Meter will release its first quarter 2025 earnings report on April 17, 2025, followed by an earnings conference call. Investors should stay informed about key expectations surrounding the company's performance.

• The consensus price target for Badger Meter, Inc. (NYSE: BMI) has gradually declined over the past year, indicating adjusted analyst expectations.
• Smart water meters industry growth is driven by the need for operational efficiencies and reduction of Non-Revenue Water (NRW), with Badger Meter being a key player.
• Argus Research analyst Kristina Ruggeri sets a price target of $218 for Badger Meter, amidst the company's upcoming first quarter 2025 earnings report.

Badger Meter, Inc. (NYSE: BMI) is a global leader in manufacturing and marketing flow measurement, quality, control, and communication solutions. Their products are essential in municipal water utilities and industries like water/wastewater, HVAC, and corporate sustainability. The company offers a diverse range of products, including mechanical and static water meters, flow instrumentation products, and advanced metering analytics.

The consensus price target for Badger Meter's stock has seen a gradual decline over the past year. Last month, the average price target was $196, down from $202.5 last quarter and $206.1 last year. This trend suggests that analysts have adjusted their expectations, possibly due to market conditions, company performance, or industry trends.

The smart water meters industry is growing rapidly, driven by the need for operational efficiencies in domestic water utilities with limited budgets. Smart meters help reduce Non-Revenue Water (NRW), which accounts for 30-35% of total water volume globally. Advanced Metering Infrastructure (AMI) technology is expected to grow significantly, as it lowers operational costs through better data communication.

Badger Meter is a key player in this market, alongside companies like Sensus and Landis+Gyr. The market is ripe with innovation, focusing on IoT and AI for real-time monitoring and sustainability in smart cities. The Asia Pacific region, led by infrastructure developments in China and India, is experiencing the highest compound annual growth rate (CAGR).

Argus Research analyst Kristina Ruggeri has set a price target of $218 for Badger Meter, indicating potential earnings growth. However, the company may not have the optimal combination of factors for an earnings beat. Badger Meter will release its first quarter 2025 earnings report on April 17, 2025, followed by an earnings conference call. Investors should stay informed about key expectations surrounding the company's performance.

Badger Meter, Inc. (NYSE:BMI) is renowned for its cutting-edge smart water solutions, focusing on flow measurement and control products for water utilities and industrial markets. It competes with companies like Itron and Xylem in the water management technology sector.

On January 31, 2025, BMI is poised to announce its quarterly earnings, with Wall Street forecasting an EPS of $1.01, in line with the Zacks Consensus Estimate. This represents a significant 20.2% increase year-over-year. Analysts have shown optimism by adjusting their earnings estimates upwards by 1 cent over the past 60 days.

Revenue expectations for BMI are set at around $202.7 million, slightly surpassing the Zacks Consensus Estimate of $198.9 million. This would denote a 9% growth compared to the prior year. Notably, BMI has exceeded earnings expectations in the last four quarters, with an average surprise of 10.4%, as per Zacks.

The anticipated performance boost is attributed to robust demand for BMI's smart water solutions, including its mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service offerings. However, the holiday season's reduced operating days could present a hurdle.

Examining BMI's financial health, the company's P/E ratio stands at 51.48, indicating a strong investor willingness to invest in its earnings. The price-to-sales ratio is 7.63, with an enterprise value to sales ratio of 7.31. A notably low debt-to-equity ratio of 0.0012 suggests the company has minimal debt relative to its equity.