📊 BMI Key Takeaways
Is Badger Meter Inc. (BMI) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 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
- 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 3.36x 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 |
|---|---|---|---|
| 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.
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 (STRONG BUY) and ChatGPT (BUY) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BMI's key strengths?
Claude: 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. 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: 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. 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 $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?
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 April 2026, Badger Meter Inc. has a BUY rating with 88% 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 19.9% (sector avg: 15%), net margin of 15.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
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 $183.7M, with capital expenditures of $14.0M. FCF margin is 18.5%.
How does BMI compare to other Market stocks?
Vs Default sector averages: Net margin 15.5% (avg: 12%), ROE 19.9% (avg: 15%), current ratio 3.36 (avg: 1.8).