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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2326
Positioning
Market Dominance
Manufacturing
Measuring And Control Equipment
$5.3B
Kenneth C. Bockhorst
Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments.
Headcount
2.0K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = BMI ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$BMI BADGER METER INC | 48 | 72 | 57 | 30 | 33.5x | 25.9x | 19.6% | 14.4% | 41.2% | 20.0% | 15.5% | 8.8% | 0.8% | 36.0x | $5.3B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
BADGER METER INC (BMI) receives a "Reduce" rating with a composite score of 48.0/100. It ranks #2326 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Kenneth C. Bockhorst
Chief Executive Officer
Labor Force
1,980
72
26
67
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for BMI
HQ Base
MILWAUKEE, Wisconsin
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for BMI.
View All RatingsMaterial decline in asset turnover efficiency detected
ROE proxy 19.6% (sector -2.5%)
GM 41% vs sector 43%, OM 20% vs sector 1%
Capital turnover N/A, R&D intensity 2.4%
Rev growth 9%, 10yr history
Interest coverage N/A, Net debt/EBITDA -1.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
BADGER METER INC receives a Reduce rating from our analysis, with a composite score of 48.0/100 and 2 out of 5 stars, ranking #2326 out of 7,333 stocks. BMI's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
BMI earns a quality score of 72/100, indicating above-average business quality. The company reports a return on equity of 19.6% (sector avg: -2.5%), gross margins of 41.2% (sector avg: 42.5%), net margins of 15.5% (sector avg: -0.2%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
BMI's value score of 57/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 33.52x, an EV/EBITDA of 25.95x, a P/B ratio of 6.58x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
BADGER METER INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 8.8% vs. a sector average of 5.9% and a return on assets of 14.4% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
BMI is currently showing below-average momentum at 30/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 8.8% year-over-year, while a beta of 0.90 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
BMI shows good financial stability with a score of 67/100. Key stability metrics include a beta of 0.90 and a debt-to-equity ratio of 36.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 44/100 for BMI suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 36.00x). With a $5.3B market cap (mid-cap), BADGER METER INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
BMI offers a modest dividend yield of 0.8%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
BADGER METER INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2326 of 7,333 overall (68th percentile). Key comparisons include ROE of 19.6% exceeding the -2.5% sector median and operating margins of 20.0% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While BMI currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (26) would have the largest impact on the composite score.
EV/EBITDA 126% ABOVE SECTOR MEDIAN
ROE 892% BELOW SECTOR MEDIAN
Gross Margin IN LINE WITH SECTOR BENCHMARKS
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate BADGER METER INC (BMI) as a Reduce with a composite score of 48.0/100 at a current price of $158.37. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in quality (72th percentile) and stability (67th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (26th percentile) and momentum (30th percentile) tempers our overall conviction. We assign a Narrow Moat rating (51/100), Low uncertainty, and Standard capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
BADGER METER INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.0/100 places it at rank #2326 in our full 7,333-stock universe. At $5.3B in market capitalization, BADGER METER INC is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue is growing at 9%, though momentum at the 30th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 41% (-1.3pp vs sector) narrow to operating margins of 20% (+18.7pp vs sector) and net margins of 15.5%, yielding a gross-to-net conversion rate of 38%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $158.37, BADGER METER INC is trading near fair value based on current fundamentals. Our value factor score of 57/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 33.5x (a 51% premium to the sector median of 22.3x), EV/EBITDA of 25.9x (at a premium), P/B of 6.6x, P/S of 5.2x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Gross margins of 41% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Returns on equity of 19.6% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Return on assets of 14.4% indicates efficient deployment of the full asset base, not just equity capital.
The Reduce rating (composite 48.0/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Weak momentum (30th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Low uncertainty rating to BADGER METER INC. The company exhibits strong financial stability with a beta of 0.90, conservative leverage (36% D/E), and a stability factor in the 67th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
We identify no major risk factors at this time. The company's stability factor sits at the 67th percentile with quality at the 72th percentile, both of which support our low-risk assessment. The absence of material leverage, profitability, or volatility concerns reduces the likelihood of a permanent capital loss scenario.
Key risk mitigants include: healthy gross margins of 41% provide a buffer against cost pressures; above-average stability (67th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate BADGER METER INC's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 19.6%, and the balance sheet is managed within acceptable parameters (D/E: 36%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; BADGER METER INC falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 0.80% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, BADGER METER INC receives a Reduce rating with a composite score of 48.0/100 (rank #2326 of 7,333). Our quantitative framework assigns a Narrow Moat (51/100, trend: stable), Low uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 50/100.
Our analysis does not support a constructive view on BADGER METER INC at this time. The combination of the current quantitative profile, low uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign BADGER METER INC a Narrow Moat rating with a composite moat score of 51/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that BADGER METER INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 15.2/20.
The strongest moat sources are margin superiority (15.2/20) and growth durability (12.4/20). GM 41% vs sector 43%, OM 20% vs sector 1%. Rev growth 9%, 10yr history. These pillars form the core of BADGER METER INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0.8/20) and economic value creation (10.4/20). Capital turnover N/A, R&D intensity 2.4%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect BADGER METER INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 41% providing a solid profitability foundation, operating margins of 20% reflecting effective cost management, moderate revenue growth of 9%. The margin cascade from 41% gross to 20% operating to 15.5% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 72th percentile.
The margin profile shows gross margins of 41%, operating margins of 20%, net margins of 15.5%. Return metrics include ROE of 19.6% and ROA of 14.4%. Relative to the Manufacturing sector, gross margins are 1.3 percentage points below the sector median of 43%, and ROE of 19.6% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 36%, a dividend yield of 0.80%, revenue growth of 9%. The sector median D/E is 0%, putting BADGER METER INC at higher leverage than the typical peer. The combination of low leverage and healthy profitability provides significant financial resilience and strategic optionality.
Above 50MA
37.18%
Net New Highs
+51081
The Federal Reserve held interest rates steady at 3.5%-3.75% on January 28, 2026, with Fed Chair Powell citing an improving economic outlook. Markets remained muted with the S&P 500 down 0.01%, while the Nasdaq rose 0.17%. Megacap tech earnings dominated trading, with Meta beating expectations and surging in after-hours trading, while Microsoft declined despite beating estimates due to investor concerns about high AI spending. Tesla beat estimates but reported declining revenues.
Badger Meter's 40% stock price decline has created an oversold condition with attractive valuation below 20X 2030 earnings. The company reported Q4 2025 revenue growth of 7.6% to $220M with operating margin expansion and 10% GAAP earnings growth. With strong institutional buying, a fortress balance sheet, mid-teens earnings growth forecasts, and reliable capital returns through dividends and buybacks, the stock appears positioned for a potential 50% rebound in upcoming quarters.
Badger Meter shares fell 10% after Q4 earnings revealed sales growth slowed to 8% (2% organic), missing Wall Street expectations by $11 million. Despite the miss, the company posted strong full-year results with 11% revenue growth and 19% free cash flow growth. CEO Bockhorst attributes the slowdown to concentrated project completions and expects recovery in H2 2026 as new multi-year deployments begin. The stock now trades at a more reasonable 26x FCF valuation after dropping 30% over the past year.
Badger Meter is positioned as a leader in smart-water technology with significant growth potential. The company has converted only 40% of its client base to advanced metering infrastructure (AMI) and plans to expand through new product capabilities, geographic expansion, and strategic acquisitions like SmartCover. With 33 consecutive years of dividend increases and a long-term growth outlook driven by global water scarcity concerns, the company is being added to the Voyager Portfolio.
Badger Meter, a water management solutions company, has demonstrated impressive long-term growth with strong financial performance, strategic acquisitions, and potential for future expansion in modernizing water utilities.