Badger Meter Inc (BMI, Financial) has recently experienced a notable uptick in its stock performance, with a market capitalization now standing at $5.04 billion. The current price of the stock is $171.76, reflecting a 12.16% gain over the past week and a 14.68% gain over the past three months. This growth trajectory has caught the attention of investors and market analysts alike, prompting a closer examination of the factors contributing to this surge.
Understanding Badger Meter's Market Position
Badger Meter Inc, a key player in the hardware industry, specializes in the innovation, manufacturing, and marketing of flow measurement and control products. These products are essential for water utilities and various industrial applications. The company's offerings include water meters, radios, software, and water quality monitoring solutions, which are predominantly sold in the United States. With a strong focus on delivering timely measurement data, Badger Meter has established itself as a leader in its field.
Robust Profitability Metrics
Badger Meter's financial health is reflected in its impressive Profitability Rank of 9/10, indicating a high likelihood of sustained profitability. The company's Operating Margin stands at 16.76%, surpassing 90.5% of 2,462 companies in the industry. Additionally, Badger Meter boasts a Return on Equity (ROE) of 19.41%, a Return on Assets (ROA) of 14.02%, and a Return on Invested Capital (ROIC) of 20.91%, each outperforming the majority of their industry peers. This consistent profitability over the past decade underscores the company's financial resilience and operational efficiency.
Impressive Growth Trajectory
Badger Meter's growth story is equally compelling, with a Growth Rank of 9/10. The company has achieved a 17.90% 3-Year Revenue Growth Rate per Share, outpacing 83.33% of 2,352 companies. Its 5-Year Revenue Growth Rate per Share stands at 10.20%, and the estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 7.79%. The company's EPS growth rates are equally robust, with both 3-Year and 5-Year EPS without NRI Growth Rates at 22.90%. These figures not only reflect the company's past success but also its potential for future earnings expansion.
Investor Confidence and Shareholder Composition
Investor confidence in Badger Meter is evident from the holdings of notable investors. Mairs and Power (Trades, Portfolio) holds 141,376 shares, representing a 0.48% share percentage. Mario Gabelli (Trades, Portfolio) owns 98,525 shares, accounting for 0.34% of the company, while Jim Simons (Trades, Portfolio) has a stake of 87,000 shares, or 0.3%. These investments by seasoned investors signal a strong belief in the company's value proposition and strategic direction.
Competitive Landscape
In comparison to its competitors, Badger Meter holds its own with a market cap that is competitive within the hardware industry. Itron Inc (ITRI, Financial) has a market cap of $4.21 billion, Sensata Technologies Holding PLC (ST, Financial) is valued at $5.07 billion, and Novanta Inc (NOVT, Financial) stands at $5.5 billion. Badger Meter's recent stock performance and financial metrics suggest that it is well-positioned to maintain, if not enhance, its competitive standing.
Conclusion: A Fair Valuation Amidst Growth
In conclusion, Badger Meter Inc's stock performance has been remarkable, with significant gains over the past week and three months. The company's current GF Value of $156.78, up from the past GF Value of $147.78, indicates that the stock is fairly valued. This assessment, defined by GuruFocus.com, is based on historical multiples, past performance adjustments, and future business estimates. With a strong profitability and growth profile, along with a stable competitive position, Badger Meter presents a compelling case for investors seeking a balanced investment in the hardware sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
