📊 BMI Key Takeaways
Is Badger Meter Inc. (BMI) a Good Investment?
Badger Meter demonstrates exceptional financial stability with fortress-like balance sheet metrics (3.0x current ratio, zero debt, $205.5M cash), but the extraordinary 17,789% YoY revenue growth appears driven by acquisition/consolidation rather than organic expansion, masking underlying capital inefficiency. Weak returns on capital (ROE 4%, ROA 2.8%) despite solid operating margins (17.4%) and positive free cash flow ($29.5M) suggest the massive revenue base is not being translated into commensurate shareholder value.
Badger Meter shows high-quality fundamentals with strong profitability, consistent earnings growth, and excellent cash generation. The balance sheet is exceptionally conservative with substantial cash and no meaningful leverage, which supports resilience and reinvestment capacity. The main caution is that the reported revenue growth appears inconsistent with the rest of the financial profile, so growth quality should be monitored closely for normalization or data classification issues.
Why Buy Badger Meter Inc. Stock? BMI Key Strengths
- Fortress balance sheet with zero debt and minimal liabilities ($16.8M on $970.8M assets)
- Exceptional liquidity with 3.0x current ratio and $205.5M cash position providing strategic flexibility
- Positive free cash flow generation ($29.5M) with strong FCF margin of 14.6%
- Solid operating margins at 17.4% indicate core business pricing power and operational execution
- Strong margins across the income statement, including 41.7% gross margin and 20.0% operating margin
- Debt-free, highly liquid balance sheet with $226.02M in cash and solid current and quick ratios
- Robust cash conversion with $183.70M operating cash flow and $169.67M free cash flow
BMI Stock Risks: Badger Meter Inc. Investment Risks
- Unsustainable revenue growth rate (17,789% YoY) indicates major acquisition/consolidation event masking organic growth visibility and integration execution risk
- Critical capital efficiency weakness with only 4.0% ROE on $690.4M equity base and 2.8% ROA, signaling poor asset utilization or over-capitalization
- Disconnect between revenue explosion and modest 13.4% net income growth suggests margin compression, integration costs, or revenue quality concerns
- Elevated insider activity with 43 Form 4 filings in 90 days may signal management uncertainty or potential governance concerns
- Reported revenue growth of +17789.6% suggests a possible data anomaly or non-comparable period
- Net income and EPS growth are solid but not hypergrowth, so future returns depend on sustaining margin discipline
- Capital allocation execution will matter given the large cash balance and limited leverage
Key Metrics to Watch
- Organic revenue growth rate post-acquisition (separation of organic vs. acquisition-driven growth)
- Return on Equity and ROIC trends over next 4 quarters (capital efficiency recovery)
- Operating margin sustainability as integration completes
- Free cash flow conversion rate and cash deployment strategy
- Revenue growth normalization and backlog/order trends
- Free cash flow margin and operating margin sustainability
Badger Meter Inc. (BMI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.00x current ratio provides a solid financial cushion.
BMI Profit Margin, ROE & Profitability Analysis
BMI vs Market Sector: How Badger Meter Inc. Compares
How Badger Meter Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Badger Meter Inc. Stock Overvalued? BMI Valuation Analysis 2026
Based on fundamental analysis, Badger Meter Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Badger Meter Inc. Balance Sheet: BMI Debt, Cash & Liquidity
BMI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Badger Meter Inc.'s revenue has grown significantly by 81% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.14 reflects profitable operations.
BMI Revenue Growth, EPS Growth & YoY Performance
BMI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $202.3M | $27.3M | $0.93 |
| Q3 2025 | $208.4M | $32.0M | $1.08 |
| Q2 2025 | $216.7M | $33.1M | $1.12 |
| Q1 2025 | $196.3M | $29.1M | $0.99 |
| Q3 2024 | $186.2M | $26.0M | $0.88 |
| Q2 2024 | $175.9M | $22.5M | $0.76 |
| Q1 2024 | $159.1M | $19.4M | $0.66 |
| Q3 2023 | $148.0M | $17.9M | $0.61 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Badger Meter Inc. Dividends, Buybacks & Capital Allocation
BMI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Badger Meter Inc. (CIK: 0000009092)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BMI
What is the AI rating for BMI?
Badger Meter Inc. (BMI) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BMI's key strengths?
Claude: Fortress balance sheet with zero debt and minimal liabilities ($16.8M on $970.8M assets). Exceptional liquidity with 3.0x current ratio and $205.5M cash position providing strategic flexibility. ChatGPT: Strong margins across the income statement, including 41.7% gross margin and 20.0% operating margin. Debt-free, highly liquid balance sheet with $226.02M in cash and solid current and quick ratios.
What are the risks of investing in BMI?
Claude: Unsustainable revenue growth rate (17,789% YoY) indicates major acquisition/consolidation event masking organic growth visibility and integration execution risk. Critical capital efficiency weakness with only 4.0% ROE on $690.4M equity base and 2.8% ROA, signaling poor asset utilization or over-capitalization. ChatGPT: Reported revenue growth of +17789.6% suggests a possible data anomaly or non-comparable period. Net income and EPS growth are solid but not hypergrowth, so future returns depend on sustaining margin discipline.
What is BMI's revenue and growth?
Badger Meter Inc. reported revenue of $202.3M.
Does BMI pay dividends?
Badger Meter Inc. pays dividends, with $11.7M distributed to shareholders in the trailing twelve months.
Where can I find BMI SEC filings?
Official SEC filings for Badger Meter Inc. (CIK: 0000009092) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BMI's EPS?
Badger Meter Inc. has a diluted EPS of $0.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BMI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Badger Meter Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BMI stock overvalued or undervalued?
Valuation metrics for BMI: ROE of 4.0% (sector avg: 15%), net margin of 13.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy BMI stock in 2026?
Our dual AI analysis gives Badger Meter Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BMI's free cash flow?
Badger Meter Inc.'s operating cash flow is $33.9M, with capital expenditures of $4.4M. FCF margin is 14.6%.
How does BMI compare to other Market stocks?
Vs Default sector averages: Net margin 13.5% (avg: 12%), ROE 4.0% (avg: 15%), current ratio 3.00 (avg: 1.8).