Last Updated: 14 Sep 2024
Executive Summary
Badger Meter Inc. (BMI) is a leading manufacturer and marketer of flow measurement, control, quality, and communication solutions. The company's strong financial performance, including consistent revenue growth and profitability, has positioned it well in the industry. Analysts are generally optimistic about BMI's long-term prospects, with a consensus target price of $206.4.
Company Overview
Badger Meter Inc. is headquartered in Milwaukee, Wisconsin, and has operations worldwide. The company's products are used in various industries, including water, gas, energy, and chemicals. BMI has a long history of innovation and has developed a reputation for providing high-quality products and services.
Fundamental Analysis
Revenue: BMI's revenue has grown steadily in recent years, reaching $781.57 million in the trailing twelve months (TTM).
Earnings: The company's diluted earnings per share (EPS) have also increased, with a TTM EPS of $3.83.
Profitability: BMI has maintained strong profitability margins, with a gross profit margin of 28.1% and an operating margin of 19.2% TTM.
Valuation: BMI's trailing price-to-earnings (PE) ratio of 53.21 is higher than the industry average but reflects the company's strong fundamentals.
Technical Analysis
Trend: BMI's stock price has been on an uptrend in recent months, with the 50-day and 200-day moving averages providing support.
Support and Resistance: The stock has recently encountered resistance around $209.94, the 52-week high. Support is located at $197.36, the 50-day moving average.
Technical Indicators: The relative strength index (RSI) is slightly overbought, indicating that the stock may be due for a pullback.
Short Term Outlook
In the short term, BMI's stock price is likely to face some resistance as it approaches the 52-week high. However, the overall trend remains positive, and a breakout above resistance could lead to further gains.
Long Term Outlook
Analysts are generally optimistic about BMI's long-term prospects. The company's strong market position, innovative products, and consistent financial performance make it well-positioned for continued growth.
Analyst Recommendations
Of the analysts covering BMI, 1 has a strong buy rating, 1 has a buy rating, and 4 have a hold rating. The consensus target price is $206.4, representing a potential upside of 3.6% from the current price.
