Badger Story

BMI -  USA Stock  

USD 91.67  0.20  0.22%

Badger Meter is scheduled to announce its earnings today. The next earnings report is expected on the 15th of July 2021. Badger Meter Invested Capital Average is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital Average was reported at 184.02 Million. The current Market Capitalization is estimated to increase to about 3 B, while Net Income Per Employee is projected to decrease to roughly 25.2 K. As many millenniums are trying to avoid industrials space, it makes sense to concentrate on Badger Meter a little further and try to understand its current market patterns. We will evaluate why recent Badger Meter price moves suggest a bounce in May.
Published over two weeks ago
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Is Badger Meter (NYSE:BMI) outlook still optimistic based on the current debt level?
This firm has 7.22 M in debt with debt to equity (D/E) ratio of 0.02, which may show that Badger Meter is not taking advantage of profits from borrowing.
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.
Badger Meter financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Badger Meter, including all of Badger Meter's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Badger Meter assets, the company is considered highly leveraged. Understanding the composition and structure of overall Badger Meter debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Badger Total Debt

Badger Meter liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Badger Meter has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Badger Meter balance sheet include debt obligations and money owed to different Badger Meter vendors, workers, and loan providers. Below is the chart of Badger main long-term debt accounts currently reported on its balance sheet.
You can use Badger Meter financial leverage analysis tool to get a better grip on understanding its financial position

How important is Badger Meter's Liquidity

Badger Meter financial leverage refers to using borrowed capital as a funding source to finance Badger Meter ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Badger Meter financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Badger Meter's total debt and its cash.

Badger Meter exotic insider transaction detected

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 general transaction of stock options by Tessa Myers, the corporate stakeholder, on 4th of May 2021. This event was filed by Badger Meter Inc with SEC on 2021-05-04. 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.

Breaking it down

The small drop in market price for the last few months could raise concerns from stockholders as the firm it trading at a share price of 90.57 on 290,357 in volume. The company directors and management did not add much value to Badger Meter investors in March. However, diversifying your holdings with Badger Meter or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.2. The current volatility is consistent with the ongoing market swings in March 2021 as well as with Badger Meter unsystematic, company-specific events.

Asset Breakdown

242.4 M
Assets Non Current
133.5 M
Goodwill
202.2 M
Current Assets
Total Assets444.53 Million
Current Assets202.17 Million
Assets Non Current242.36 Million
Goodwill133.52 Million
Tax Assets4.07 Million

Our take on Badger Meter to rebound

The maximum drawdown is down to 9.56 as of today. Badger Meter exhibits very low volatility with skewness of -0.43 and kurtosis of 0.99. However, we advise investors to further study Badger Meter technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Badger Meter's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Badger Meter's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Badger Meter Investment

While many of the other players in the electrical equipment & parts industry are either recovering or due for a correction, Badger Meter may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 20th of April 2021, we believe that Badger Meter is currently overvalued with average odds of financial turmoil in the next two years. Our overall 30 days 'Buy-Sell' recommendation on the company is Strong Hold.

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 Raphi Shpitalnik 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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