# Badger Meter (BMI.US)

Canonical: https://gigainvestors.com/s/BMI

Analysis as of: 2026-10-16T07:27:00.518Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $126.88 per share; close as of 2026-10-15.

Estimated value: low $78.82 per share, central $111.68 per share, high $130.01 per share. Buy at or below the central value $111.68 per share. Valuation as of 2026-10-16T07:27:00.518Z; scenarios are not confidence intervals.

Expected annual return: 9.1% at the stated quote. About 9.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.13×

- FY2019: 0.15×

- FY2020: 0.15×

- FY2021: 0.16×

- FY2022: 0.15×

- FY2023: 0.17×

- FY2024: 0.19×

- FY2025: 0.20×

- LTM to Jun 2026: 0.19×

### moat: pass

- ROIC, median of available years: 25.9%

- ROIC, second-lowest year: 14.9%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 39.1%

- Recent gross margin (lower of latest and 3-year median): 39.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 23.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.9%

- FY2017: 14.9%

- FY2018: 18.6%

- FY2019: 22.1%

- FY2020: 23.8%

- FY2021: 28.0%

- FY2022: 31.5%

- FY2023: 41.2%

- FY2024: 57.8%

- FY2025: 54.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.20×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $584M

- Net income, five-year total: $487M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -7.9 pp

- Working capital / revenue, final three-year average: 21.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.35×

- FY2022: 1.31×

- FY2023: 1.17×

- FY2024: 1.16×

- FY2025: 1.15×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 14.9% vs 54.7%

- Per-share earnings: 1.11 to 4.23 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: $5.4B

- Cumulative retained earnings: $422M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.2%

- Per-share value change: $3.12

- Per-share value, starting three-year median: $1.11

- Per-share value, ending three-year median: $4.23

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 0.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: $293M

- Cumulative net income, 10 years: $678M

- ROIC, first three-year median: 14.9%

- ROIC, last three-year median: 54.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.11

- FY2017: $1.19

- FY2018: $0.95

- FY2019: $1.61

- FY2020: $1.69

- FY2021: $2.08

- FY2022: $2.26

- FY2023: $3.14

- FY2024: $4.23

- FY2025: $4.79

### accounting: pass

- Sloan accruals: -4.3%

- Receivables to sales index (DSRI): 1.20×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.30×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.50×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.8%

- FY2017: -3.9%

- FY2018: -8.3%

- FY2019: -7.9%

- FY2020: -8.5%

- FY2021: -5.0%

- FY2022: -2.6%

- FY2023: -2.4%

- FY2024: -3.7%

- FY2025: -4.3%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 49% since May 2025 · "Badger Meter crashes 14% after Q2 earnings beat; weak margins, water sales reasons" (seekingalpha.com, Jul 2026) · sales -3.9%

Story as of 2026-10-16T09:58:24.909Z; price observation 2026-10-15.

Price needs cash profits to grow 9.1% a year for ten years

- 2025-04-24: BMI Q1 Earnings Call: Margin Expansion Driven by Mix, Tariff Uncertainty Remains ([finance.yahoo.com](https://finance.yahoo.com/news/bmi-q1-earnings-call-margin-033106881.html))

- 2025-07-25: BMI Q2 Deep Dive: Sales Outpace Expectations, Margin Uncertainty and Integration Costs Weigh ([finance.yahoo.com](https://finance.yahoo.com/news/bmi-q2-deep-dive-sales-132337166.html))

- 2026-01-28: Badger Meter (NYSE:BMI) Misses Q4 CY2025 Revenue Estimates, Stock Drops ([finance.yahoo.com](https://finance.yahoo.com/news/badger-meter-nyse-bmi-misses-134158005.html))

- 2026-02-01: Badger Meter (BMI) Valuation Check After Q4 Revenue Miss And Record Full Year Profit ([finance.yahoo.com](https://finance.yahoo.com/news/badger-meter-bmi-valuation-check-042533661.html))

- 2026-05-12: Badger Meter Faces Legal Probes After Q1 Miss And Order Weakness ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/badger-meter-faces-legal-probes-121402266.html))

- 2026-07-22: Badger Meter crashes 14% after Q2 earnings beat; weak margins, water sales reasons ([seekingalpha.com](https://seekingalpha.com/news/4616820-badger-meter-crashes-14-after-q2-earnings-beat-weak-margins-water-sales-reasons?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales -3.9%; source https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm; observed 2026-02-17.

- FY2017: $402M 

- FY2018: $434M 

- FY2019: $425M 

- FY2020: $426M 

- FY2021: $505M 

- FY2022: $566M 

- FY2023: $704M 

- FY2024: $827M 

- FY2025: $917M 

- FY2026: $881M 

### Gross margin · FY2025

gross margin 41.7%; source https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm; observed 2026-02-17.

- FY2016: 38.2% 

- FY2017: 38.7% 

- FY2018: 37.4% 

- FY2019: 38.5% 

- FY2020: 39.5% 

- FY2021: 40.7% 

- FY2022: 38.9% 

- FY2023: 39.3% 

- FY2024: 39.8% 

- FY2025: 41.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 916.7 million.

- Source: https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm (filed 2026-02-17); FY2025: revenue 916663000; grossProfit 382070000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BMI.US: Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide. The company offers Utility water smart metering solutions and software technologies and services to municipal water utility market. It also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water user to view and manage their water usage activity. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers. It sells its products and software to employees, resellers, and representatives. The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.

### Why customers stay

Margins ranged from 39.3% to 41.7% during 2023–25; it earns 25.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 39.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 39.8%.

- Source: https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 41.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.1389316946447894],[2017,0.14853007633086018],[2018,0.18582377555380594],[2019,0.22096734281339658],[2020,0.23843340553377698],[2021,0.27994782283179276],[2022,0.3152728794128076],[2023,0.41245389091884704],[2024,0.5776428141687949],[2025,0.5470855720325186]]; median 0.2591906141827849. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 39% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm (filed 2026-02-17); Gross margin observations: [[2021,0.40673953578596905],[2022,0.3889364320470748],[2023,0.3928953143298957]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 15 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 10596000; owner earnings 44141000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 15069000; owner earnings 43900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 0; upkeep 8643000; owner earnings 43462000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 7496000; owner earnings 63827000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 9059000; owner earnings 65500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 0; upkeep 6746000; owner earnings 82000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 0; upkeep 5891000; owner earnings 86846000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 12003000; owner earnings 108705000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 12818000; owner earnings 144309000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 14026000; owner earnings 162192000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,12461000],[2017,14215000],[2018,16265000],[2019,18595000],[2020,20340000],[2021,22155000],[2022,24881000],[2023,29052000],[2024,35847000],[2025,43529000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 15002000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BMI.US SharesStats.PercentInsiders = 0.624 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.1% yearly over ten years; actual growth was 19.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate 0.15434133478816675. Price 126.88; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9265245379663598 → FY2025 5.4852040988873485. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $32.15 per share

- 2016-11: $36.25 per share

- 2016-12: $36.95 per share

- 2017-01: $38.55 per share

- 2017-02: $36.60 per share

- 2017-03: $36.75 per share

- 2017-04: $39.75 per share

- 2017-05: $39.20 per share

- 2017-06: $39.85 per share

- 2017-07: $45.25 per share

- 2017-08: $45.90 per share

- 2017-09: $49.00 per share

- 2017-10: $43.80 per share

- 2017-11: $46.40 per share

- 2017-12: $47.80 per share

- 2018-01: $48.20 per share

- 2018-02: $47.60 per share

- 2018-03: $47.15 per share

- 2018-04: $42.45 per share

- 2018-05: $43.75 per share

- 2018-06: $44.70 per share

- 2018-07: $52.15 per share

- 2018-08: $54.95 per share

- 2018-09: $52.95 per share

- 2018-10: $49.11 per share

- 2018-11: $55.50 per share

- 2018-12: $49.21 per share

- 2019-01: $52.79 per share

- 2019-02: $58.84 per share

- 2019-03: $55.64 per share

- 2019-04: $55.48 per share

- 2019-05: $52.80 per share

- 2019-06: $59.69 per share

- 2019-07: $53.49 per share

- 2019-08: $51.58 per share

- 2019-09: $53.70 per share

- 2019-10: $57.80 per share

- 2019-11: $62.00 per share

- 2019-12: $64.93 per share

- 2020-01: $59.06 per share

- 2020-02: $60.21 per share

- 2020-03: $53.60 per share

- 2020-04: $59.03 per share

- 2020-05: $61.19 per share

- 2020-06: $62.92 per share

- 2020-07: $62.60 per share

- 2020-08: $61.69 per share

- 2020-09: $65.37 per share

- 2020-10: $73.34 per share

- 2020-11: $82.44 per share

- 2020-12: $94.06 per share

- 2021-01: $91.71 per share

- 2021-02: $108.59 per share

- 2021-03: $93.07 per share

- 2021-04: $93.39 per share

- 2021-05: $95.57 per share

- 2021-06: $98.12 per share

- 2021-07: $101.03 per share

- 2021-08: $107.09 per share

- 2021-09: $101.14 per share

- 2021-10: $102.25 per share

- 2021-11: $102.36 per share

- 2021-12: $106.56 per share

- 2022-01: $101.17 per share

- 2022-02: $99.41 per share

- 2022-03: $99.71 per share

- 2022-04: $80.69 per share

- 2022-05: $79.14 per share

- 2022-06: $80.89 per share

- 2022-07: $96.19 per share

- 2022-08: $94.69 per share

- 2022-09: $92.39 per share

- 2022-10: $112.48 per share

- 2022-11: $115.82 per share

- 2022-12: $109.03 per share

- 2023-01: $115.90 per share

- 2023-02: $121.62 per share

- 2023-03: $121.82 per share

- 2023-04: $132.33 per share

- 2023-05: $137.87 per share

- 2023-06: $147.56 per share

- 2023-07: $164.64 per share

- 2023-08: $166.08 per share

- 2023-09: $143.87 per share

- 2023-10: $138.55 per share

- 2023-11: $147.37 per share

- 2023-12: $154.37 per share

- 2024-01: $143.99 per share

- 2024-02: $158.69 per share

- 2024-03: $161.81 per share

- 2024-04: $182.92 per share

- 2024-05: $192.96 per share

- 2024-06: $186.35 per share

- 2024-07: $206.16 per share

- 2024-08: $206.94 per share

- 2024-09: $218.41 per share

- 2024-10: $200.05 per share

- 2024-11: $216.82 per share

- 2024-12: $212.12 per share

- 2025-01: $213.91 per share

- 2025-02: $210.33 per share

- 2025-03: $190.25 per share

- 2025-04: $220.82 per share

- 2025-05: $248.22 per share

- 2025-06: $244.95 per share

- 2025-07: $188.76 per share

- 2025-08: $182.92 per share

- 2025-09: $178.58 per share

- 2025-10: $180.45 per share

- 2025-11: $178.54 per share

- 2025-12: $174.41 per share

- 2026-01: $146.58 per share

- 2026-02: $152.43 per share

- 2026-03: $152.35 per share

- 2026-04: $120.91 per share

- 2026-05: $123.90 per share

- 2026-06: $148.38 per share

- 2026-07: $134.35 per share

- 2026-08: $135.47 per share

- 2026-09: $123.54 per share

- 2026-10: $126.88 per share

## Annual estimated value (USD per share)

- FY2016: low $14.47 per share, central $17.83 per share, high $20.80 per share

- FY2017: low $14.74 per share, central $17.98 per share, high $20.95 per share

- FY2018: low $17.36 per share, central $20.92 per share, high $24.34 per share

- FY2019: low $18.71 per share, central $21.10 per share, high $24.28 per share

- FY2020: low $20.02 per share, central $22.48 per share, high $25.75 per share

- FY2021: low $30.92 per share, central $34.82 per share, high $40.01 per share

- FY2022: low $36.63 per share, central $41.08 per share, high $47.01 per share

- FY2023: low $59.42 per share, central $83.91 per share, high $97.57 per share

- FY2024: low $72.23 per share, central $101.03 per share, high $117.10 per share

- FY2025: low $80.09 per share, central $113.61 per share, high $132.30 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/9092/000119312526054739/bmi-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.