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Badger Meter (BMI) Hikes Dividend on Strong Growth Drivers
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Badger Meter, Inc. (BMI - Free Report) recently announced a 11.1% year-over-year hike in its quarterly dividend payout. The proposed dividend of 20 cents per share or 80 cents on an annualized basis is payable Sep 10, 2021 to shareholders of record as on Aug 27.
Based on the closing price of $104.52 on Aug 13, the proposed dividend affirms a yield of 0.76%. A steady dividend payout is part of the company’s long-term strategy to provide attractive risk-adjusted returns to its stockholders. In addition, healthy dividend increases at periodic intervals have been one of its major strengths.
This is the 29th consecutive year of dividend increase for Badger Meter. The current hike reflects the inherent financial strength of the company and healthy cash flow generated from continued focus on high-margin businesses and a healthy execution of operating plans.
Badger Meter reported solid second-quarter 2021 results, with the bottom line matching the Zacks Consensus Estimate and top line surpassing the same. Record order momentum, impressive sales growth, higher adoption of innovative digital water solutions and recovering market trends post the COVID-19 crisis drove the performance.
Net sales in the second quarter improved 34.8% year over year to $122.9 million due to solid order rates, driven by accelerated adoption of innovative digital water technologies among customers. Market recovery of global flow instrumentation played a crucial role as well. The company also benefited from strategic value-based pricing actions and witnessed a favorable mix of high-end products and services along with higher BEACON SaaS revenues.
Badger Meter is continuously prioritizing and enhancing its presence in select regional markets outside the United States that offer healthy growth potential. The company is likely to benefit from the launch of innovative products such as the 3-inch and 4-inch E-Series commercial meters and ORION LTE-M cellular radio endpoints. With smart alarms, pressure and temperature data, the products offer early detection of any anomaly in the system, thereby lowering maintenance and operating costs for utility firms. In addition, Badger Meter is likely to benefit from a strong cash position driven by solid earnings conversion.
Badger Meter’s near-term outlook remains bullish on the gradual stabilization of overall end-market activities post lockdown. It expects to witness solid backlog and bid pipeline on the back of increasing orders in the forthcoming quarters. This will eventually help the company to ensure smooth functioning of business operations with strong profitability. Thanks to recovering macro trends, the company continues to expand its portfolio of smart water solutions while driving their adoption.
Value-based pricing efforts will likely help in mitigating the surge in brass costs. Although logistics challenges serve as a prime headwind, effective sourcing strategies and supply chain management are expected to enhance Badger Meter’s operational agility as it remains committed to delivering critical products and services to its diversified customer base.
Despite a challenging price/cost environment, Badger Meter is well poised to enable strategic, tuck-in mergers and acquisitions to augment offerings across global markets with a healthy liquidity position. It is focused on investing in digital solutions that operationalize real-time data and utilize remote solutions to reduce overall costs and enhance efficiency. Customer demand is predicted to be the crux of product and technology roadmap. Continued R&D investments with inventory planning capabilities and backlog conversion are likely to provide potential opportunities in the future.
The stock has gained 57.4% over the past year compared with the industry’s rise of 48.1%.
Allied Motion has a long-term earnings growth expectation of 10%. It delivered an earnings surprise of 52.4%, on average, in the trailing four quarters.
Sensata has a long-term earnings growth expectation of 11%. It delivered an earnings surprise of 13.2%, on average, in the trailing four quarters.
Watts Water has a long-term earnings growth expectation of 8%. It delivered an earnings surprise of 17.3%, on average, in the trailing four quarters.
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Badger Meter (BMI) Hikes Dividend on Strong Growth Drivers
Badger Meter, Inc. (BMI - Free Report) recently announced a 11.1% year-over-year hike in its quarterly dividend payout. The proposed dividend of 20 cents per share or 80 cents on an annualized basis is payable Sep 10, 2021 to shareholders of record as on Aug 27.
Based on the closing price of $104.52 on Aug 13, the proposed dividend affirms a yield of 0.76%. A steady dividend payout is part of the company’s long-term strategy to provide attractive risk-adjusted returns to its stockholders. In addition, healthy dividend increases at periodic intervals have been one of its major strengths.
This is the 29th consecutive year of dividend increase for Badger Meter. The current hike reflects the inherent financial strength of the company and healthy cash flow generated from continued focus on high-margin businesses and a healthy execution of operating plans.
Badger Meter reported solid second-quarter 2021 results, with the bottom line matching the Zacks Consensus Estimate and top line surpassing the same. Record order momentum, impressive sales growth, higher adoption of innovative digital water solutions and recovering market trends post the COVID-19 crisis drove the performance.
Net sales in the second quarter improved 34.8% year over year to $122.9 million due to solid order rates, driven by accelerated adoption of innovative digital water technologies among customers. Market recovery of global flow instrumentation played a crucial role as well. The company also benefited from strategic value-based pricing actions and witnessed a favorable mix of high-end products and services along with higher BEACON SaaS revenues.
Badger Meter is continuously prioritizing and enhancing its presence in select regional markets outside the United States that offer healthy growth potential. The company is likely to benefit from the launch of innovative products such as the 3-inch and 4-inch E-Series commercial meters and ORION LTE-M cellular radio endpoints. With smart alarms, pressure and temperature data, the products offer early detection of any anomaly in the system, thereby lowering maintenance and operating costs for utility firms. In addition, Badger Meter is likely to benefit from a strong cash position driven by solid earnings conversion.
Badger Meter’s near-term outlook remains bullish on the gradual stabilization of overall end-market activities post lockdown. It expects to witness solid backlog and bid pipeline on the back of increasing orders in the forthcoming quarters. This will eventually help the company to ensure smooth functioning of business operations with strong profitability. Thanks to recovering macro trends, the company continues to expand its portfolio of smart water solutions while driving their adoption.
Value-based pricing efforts will likely help in mitigating the surge in brass costs. Although logistics challenges serve as a prime headwind, effective sourcing strategies and supply chain management are expected to enhance Badger Meter’s operational agility as it remains committed to delivering critical products and services to its diversified customer base.
Despite a challenging price/cost environment, Badger Meter is well poised to enable strategic, tuck-in mergers and acquisitions to augment offerings across global markets with a healthy liquidity position. It is focused on investing in digital solutions that operationalize real-time data and utilize remote solutions to reduce overall costs and enhance efficiency. Customer demand is predicted to be the crux of product and technology roadmap. Continued R&D investments with inventory planning capabilities and backlog conversion are likely to provide potential opportunities in the future.
The stock has gained 57.4% over the past year compared with the industry’s rise of 48.1%.
Image Source: Zacks Investment Research
Badger Meter presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Allied Motion Technologies, Inc. , Sensata Technologies Holding N.V. (ST - Free Report) and Watts Water Technologies, Inc. (WTS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allied Motion has a long-term earnings growth expectation of 10%. It delivered an earnings surprise of 52.4%, on average, in the trailing four quarters.
Sensata has a long-term earnings growth expectation of 11%. It delivered an earnings surprise of 13.2%, on average, in the trailing four quarters.
Watts Water has a long-term earnings growth expectation of 8%. It delivered an earnings surprise of 17.3%, on average, in the trailing four quarters.