📊 BMI Key Takeaways
Investment Thesis
Badger Meter demonstrates exceptional financial health with fortress-like balance sheet (3.36x current ratio, zero debt) and exceptional profitability (20% operating margin, 19.9% ROE). The company generates robust free cash flow of $169.7M (18.5% FCF margin) despite modest capex requirements, indicating highly efficient operations and significant capital return potential. Strong operating metrics and liquidity position suggest the company is well-positioned to weather economic cycles while investing in growth.
BMI Strengths
- Exceptional balance sheet strength with zero long-term debt and $226M cash position representing 23% of total assets
- Outstanding profitability metrics with 41.7% gross margin and 20% operating margin indicating strong pricing power and operational efficiency
- Robust free cash flow generation of $169.7M covering 95% of net income, demonstrating high quality earnings and operational cash conversion
- Excellent liquidity ratios (3.36x current, 2.36x quick) providing substantial financial flexibility and downside protection
- Strong return on equity (19.9%) and ROA (14.5%) indicating effective capital deployment and asset utilization
BMI Risks
- Anomalous 17789.6% YoY revenue growth warrants investigation - likely reflects acquisition, merger, or accounting change rather than organic growth sustainability
- High insider trading activity (37 Form 4 filings in 90 days) requires scrutiny regarding transaction patterns and motivations
- Modest capital expenditure relative to revenue ($14M or 1.5%) may indicate underinvestment in infrastructure or technology for long-term competitiveness
- Concentration in niche fluid metering market (SIC 3824) provides limited diversification and exposure to regulatory/utility sector cyclicality
- Data freshness at 2025-12-31 creates information lag for forward-looking analysis
Key Metrics to Watch
- Organic revenue growth rate excluding one-time transactions to validate underlying business momentum
- Capital expenditure trends and R&D intensity relative to revenue for innovation capacity
- Free cash flow conversion rate and dividend/buyback policies to assess capital allocation discipline
- Gross margin trajectory and pricing power sustainability in face of input cost inflation
- Working capital efficiency and cash conversion cycle improvements
BMI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.36x current ratio provides a solid financial cushion.
BMI Profitability Ratios
BMI vs Default Sector
How BADGER METER INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BMI Balance Sheet & Liquidity
BMI 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 Growth Metrics (YoY)
BMI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $137.8M | $16.7M | $0.57 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BMI Capital Allocation
BMI SEC Filings
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 an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BMI's key strengths?
Exceptional balance sheet strength with zero long-term debt and $226M cash position representing 23% of total assets. Outstanding profitability metrics with 41.7% gross margin and 20% operating margin indicating strong pricing power and operational efficiency.
What are the risks of investing in BMI?
Anomalous 17789.6% YoY revenue growth warrants investigation - likely reflects acquisition, merger, or accounting change rather than organic growth sustainability. High insider trading activity (37 Form 4 filings in 90 days) requires scrutiny regarding transaction patterns and motivations.
What is BMI's revenue and growth?
BADGER METER INC reported revenue of $916.7M.
Does BMI pay dividends?
BADGER METER INC pays dividends, with $43.5M 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 $4.79.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.