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Badger Meter (BMI) Stock Rises 30.7% in a Year: Here's How
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Badger Meter, Inc (BMI - Free Report) witnessed strong momentum in the past year, with shares having gained 30.7% in the same time frame compared with the sub-industry’s growth of 13.5%.
The company is a leading provider of water solutions, which include flow measurement, quality and other system parameters. The company’s products measure water, oil, chemicals, and other fluids and are known for accuracy, long-lasting durability, and for providing valuable and timely measurement data.
BMI witnessed earnings growth of 11.9% in the past five years, higher than the industry average of 9.4%. The stock has an impressive long-term earnings per share (EPS) growth expectation of 20.4%, higher than the industry average of 13.7%.
Image Source: Zacks Investment Research
Apart from this, the company’s PEG ratio is pegged at 2.22, below the industry’s ratio of 2.42. The stock is also down 11.2% from its 52-week high level of $170.86, making it relatively affordable for investors.
Reasons for the Upside
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company’s performance benefited from robust demand across business segments coupled with improving supply-chain dynamics. Continued strength in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues bodes well.
Going ahead, the company is making considerable efforts to reduce its elevated backlog amid an improving operating environment. Apart from this, the company benefits from rising demand for water quality and pressure monitoring systems. In the third quarter of 2023, utility water sales rose 31%, owing to strong customer demand.
Badger Meter’s EPS is expected to increase 35.8% and 9.1% on a year-over-year basis to $3.07 and $3.35 in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings has increased 7.3% and 8.1%, respectively, in the past 90 days, reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 23.1% to $696.4 million. For 2024, the revenues are anticipated to improve 7% to $745.1 million.
Strategic Acquisitions Drive Growth
The company broadens the scope of its products and services across the smart water solutions and water measurement market through focused acquisitions. In January, the company announced that it acquired select remote water monitoring hardware and software solutions from Trimble. The acquired solutions also include the Telog brand of remote telemetry units or RTUs and Trimble Unity Remote Monitoring software.
The acquisition will offer customers to monitor hardware and software for distributed data collection for applications in water, stormwater wastewater and environmental water monitoring in real time.
Prior to that, the company acquired a U.K.-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal. The integration of Syrinix’s solutions will help Badger Meter provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Stable Solvency Structure
The company has undertaken temporary cost-saving initiatives to ensure the smooth functioning of its business operations. As of Sep 30, 2023, the company had $162.9 million of cash and cash equivalents and $128.8 million of total current liabilities compared with the respective figures of $128.4 million and $115.8 million as of Jun 30, 2023.
Also, in the third quarter of 2023, Badger Meter generated $31.4 million of net cash from operating activities compared with $23.8 million a year ago. This is good news in terms of the company’s solvency position, particularly during the time of economic downturn.
The company’s cash ratio has increased to 1.27 compared with the previous year’s figure of 1.13.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has inched up 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB have gained 32.4% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 27.3% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 25.5% in the past year.
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Badger Meter (BMI) Stock Rises 30.7% in a Year: Here's How
Badger Meter, Inc (BMI - Free Report) witnessed strong momentum in the past year, with shares having gained 30.7% in the same time frame compared with the sub-industry’s growth of 13.5%.
The company is a leading provider of water solutions, which include flow measurement, quality and other system parameters. The company’s products measure water, oil, chemicals, and other fluids and are known for accuracy, long-lasting durability, and for providing valuable and timely measurement data.
BMI witnessed earnings growth of 11.9% in the past five years, higher than the industry average of 9.4%. The stock has an impressive long-term earnings per share (EPS) growth expectation of 20.4%, higher than the industry average of 13.7%.
Image Source: Zacks Investment Research
Apart from this, the company’s PEG ratio is pegged at 2.22, below the industry’s ratio of 2.42. The stock is also down 11.2% from its 52-week high level of $170.86, making it relatively affordable for investors.
Reasons for the Upside
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company’s performance benefited from robust demand across business segments coupled with improving supply-chain dynamics. Continued strength in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues bodes well.
Going ahead, the company is making considerable efforts to reduce its elevated backlog amid an improving operating environment. Apart from this, the company benefits from rising demand for water quality and pressure monitoring systems. In the third quarter of 2023, utility water sales rose 31%, owing to strong customer demand.
Badger Meter’s EPS is expected to increase 35.8% and 9.1% on a year-over-year basis to $3.07 and $3.35 in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings has increased 7.3% and 8.1%, respectively, in the past 90 days, reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 23.1% to $696.4 million. For 2024, the revenues are anticipated to improve 7% to $745.1 million.
Strategic Acquisitions Drive Growth
The company broadens the scope of its products and services across the smart water solutions and water measurement market through focused acquisitions. In January, the company announced that it acquired select remote water monitoring hardware and software solutions from Trimble. The acquired solutions also include the Telog brand of remote telemetry units or RTUs and Trimble Unity Remote Monitoring software.
The acquisition will offer customers to monitor hardware and software for distributed data collection for applications in water, stormwater wastewater and environmental water monitoring in real time.
Prior to that, the company acquired a U.K.-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal. The integration of Syrinix’s solutions will help Badger Meter provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Stable Solvency Structure
The company has undertaken temporary cost-saving initiatives to ensure the smooth functioning of its business operations. As of Sep 30, 2023, the company had $162.9 million of cash and cash equivalents and $128.8 million of total current liabilities compared with the respective figures of $128.4 million and $115.8 million as of Jun 30, 2023.
Also, in the third quarter of 2023, Badger Meter generated $31.4 million of net cash from operating activities compared with $23.8 million a year ago. This is good news in terms of the company’s solvency position, particularly during the time of economic downturn.
The company’s cash ratio has increased to 1.27 compared with the previous year’s figure of 1.13.
Other Stocks to Consider
Some other top-ranked stocks worth considering in the broader technology space are Blackbaud (BLKB - Free Report) , NETGEAR (NTGR - Free Report) and Watts Water Technologies (WTS - Free Report) . NETGEAR sports a Zacks Rank #1(Strong Buy), while Watts Water Technologies and Blackbaud carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has inched up 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB have gained 32.4% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 27.3% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 25.5% in the past year.