Badger Meter Inc (BMI, Financial), a prominent player in the hardware industry, is currently trading at $162.33 with a market cap of $4.76 billion. The company's stock price has seen a gain of 3.37% today and an increase of 5.15% over the past four weeks. In this article, we will analyze Badger Meter Inc's GF Score of 87/100, which indicates good outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which has been found to be closely correlated with the long-term performances of stocks.
Financial Strength Analysis
Badger Meter Inc's Financial Strength Rank stands at a solid 10/10. This rank measures the robustness of a company's financial situation, taking into account factors such as interest coverage and debt to revenue ratio. With an interest coverage of 10372.11 and a debt to revenue ratio of 0.00, Badger Meter Inc demonstrates a strong financial situation. The company's high Altman Z score of 18.54 further underscores its financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 9/10, indicating high profitability and consistency. This rank is based on factors such as operating margin, Piotroski F-Score, and the trend of the operating margin. With an operating margin of 15.76%, a Piotroski F-Score of 6, and a consistent profitability of 10 years over the past decade, Badger Meter Inc exhibits a strong profitability profile.
Growth Rank Analysis
Badger Meter Inc's Growth Rank is 10/10, indicating strong revenue and profitability growth. This rank measures the growth of a company in terms of its revenue and profitability. With a 5-year revenue growth rate of 6.20% and a 3-year revenue growth rate of 9.80%, the company demonstrates robust growth potential.
GF Value Rank Analysis
The company's GF Value Rank is 3/10, indicating a lower valuation compared to historical multiples. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.
Momentum Rank Analysis
Badger Meter Inc's Momentum Rank is 3/10, indicating a lower momentum ratio. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the same industry, Badger Meter Inc stands out with its high GF Score. Vontier Corp (VNT, Financial) and Itron Inc (ITRI, Financial) both have a GF Score of 59, while ESCO Technologies Inc (ESE, Financial) has a GF Score of 86.
Conclusion
In conclusion, Badger Meter Inc's strong GF Score of 87/100, backed by its robust financial strength, high profitability, and strong growth, indicates good outperformance potential. However, its lower GF Value Rank and Momentum Rank suggest that investors should exercise caution. The company's future performance will be closely watched by investors and market analysts alike.
