Badger Story

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BMI -- USA Stock  

USD 98.42  8.33  7.80%

As many millenniums are excited about industrials space, it is only fair to concentrate on Badger Meter. We will evaluate why we are still confident in anticipation of a recovery. Is current the firm value sustainable? We will go over Badger Meter valuation drivers to give you a better outlook on taking a position in it.
Published over three months ago
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Is Badger Meter (NYSE:BMI) valuation viable?
This firm has 12.01 M in debt with debt to equity (D/E) ratio of 0.04, which may show that Badger Meter is not taking advantage of profits from borrowing. The company has a current ratio of 3.49, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Macroaxis provides advice on Badger Meter to complement and cross-verify current analyst consensus on Badger Meter. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Badger Meter using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Badger Meter based exclusively on its fundamental and basic technical indicators. By analyzing Badger Meter's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Badger Meter's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Badger Meter. We calculate exposure to Badger Meter's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Badger Meter's related companies.

Badger Meter Investment Alerts

Badger investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Badger Meter performance across your portfolios.Please check all investment alerts for Badger

Badger Meter Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Badger value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Badger Meter competition to find correlations between indicators driving the intrinsic value of Badger.

How Badger utilizes its cash?

To perform a cash flow analysis of Badger Meter, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Badger Meter is receiving and how much cash it distributes out in a given period. The Badger Meter cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Badger Meter Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 92.82 Million

Acquisition by Todd Adams of 2627 shares of Badger Meter subject to Rule 16b-3

Legal trades by Badger Meter insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Badger insider trading alert for grant of stock options by Todd Adams, the corporate stakeholder, on 5th of January 2021. This event was filed by Badger Meter Inc with SEC on 2021-01-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Badger Meter Investor Appetite?

The current bullish price patterns experienced by current Badger Meter shareholders could raise concerns from stockholders as the firm it trading at a share price of 81.29 on slow start in volume. The company management teams have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.4. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2017 2018 2019 2020 (projected)
Receivables58.21 M66.3 M61.37 M54.77 M
Inventories85.17 M80.8 M81.95 M72.42 M

Margins Breakdown

Badger profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Badger Meter itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Badger Meter profit margins.
Operating Margin13.2
EBITDA Margin0.18
Gross Margin0.42
Profit Margin0.0955


Badger Meter Net Income Per Employee is increasing over the last 8 years. Badger Meter Average Assets is increasing over the last 8 years. The current value of Badger Meter Average Assets is 398,359,579. Furthermore, Badger Meter Earnings Before Interest Taxes and Depreciation Amortization USD is nearly stable at the moment. Badger Meter Net Income Per Employee is increasing over the last 8 years. Badger Meter Average Assets is nearly stable at the moment. Furthermore, Badger Meter Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Our take on today Badger Meter rise

Badger Meter current maximum drawdown boosts over 7.98. Badger Meter has relatively low volatility with skewness of -0.59 and kurtosis of 0.66. However, we advise all investors to independently investigate Badger Meter to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Badger Meter

While few other entities within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, Badger Meter may offer a potential longer-term growth to stockholders. To conclude, as of the 16th of October 2020, our up-to-date 30 days buy-hold-sell advice on the company is Buy. We believe Badger Meter is fairly valued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Badger Meter. Please refer to our Terms of Use for any information regarding our disclosure principles.

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