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Badger Meter (BMI) Rises 35% in a Year: Will the Rally Last?
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Badger Meter, Inc (BMI - Free Report) is continuing its upward trajectory, with a gain of 34.6% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 32.9% and 20.2%, respectively.
Headquartered in Milwaukee, WI, Badger Meter 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 providing valuable and timely measurement data.
The company’s cloud-hosted software suite, BEACON, allows consumer engagement tools that permit end-water customers to view and manage their water usage activity. The ORION branded family of radio endpoints includes ORION (ME), ORION (SE) applications and ORION Cellular for an infrastructure-free AMI solution.
Image Source: Zacks Investment Research
BMI witnessed earnings growth of 16.6% in the past five years, higher than the industry average of 10.2%. The stock has an impressive long-term earnings per share (EPS) growth expectation of 12.3%, higher than the industry average of 11.7%.
BMI carries a Zacks Rank #2 (Buy) at present.
Apart from a favorable rank, BMI has a Growth Score of A. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
The stock is down 10% from its 52-week high level of $170.86, making it relatively affordable for investors.
Catalysts Driving Growth
Badger Meter’s performance is being driven by robust demand across all business segments and increased adoption of its differentiated smart water solutions. Continued strength in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues bode well along with rising demand for water quality and pressure monitoring systems.
In the fourth quarter of 2023, utility water sales rose 28% year over year. Flow instrumentation sales increased 7% year over year, driven by continued demand across most of the water-focused end market.
Also, the company’s margins benefited from higher volumes and structural positive sales mix trends. In the last reported quarter, operating earnings were $32.1 million or 17.6% of sales compared with $22.5 million or 15.3% of sales in the year-ago quarter.
BMI broadens the scope of its products and services across the smart water solutions and water measurement market through focused acquisitions. In January 2024, management 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, BMI 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 to provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Badger Meter is likely to benefit from a strong cash position driven by solid earnings conversion. As of Dec 31, 2023, Badger Meter had $191.7 million in cash and cash equivalents with no long-term debt.
Estimate Revision Activity
Badger Meter’s EPS is expected to increase 8.3% and 11.4% from the year-ago levels to $3.40 and $3.79 in 2024 and 2025, respectively. The Zacks Consensus Estimate for 2024 and 2025 earnings has increased 1.5% and 2.2%, respectively, in the past 60 days, reflecting analysts’ optimism.
The company’s revenues for 2024 and 2025 are projected to rise 6.6% and 7.3% to $749.8 million and $804.2 million, respectively.
Other Stocks to Consider
Some other top-ranked stocks worth consideration in the broader technology space are Manhattan Associates (MANH - Free Report) , Watts Water Technologies (WTS - Free Report) and Microsoft (MSFT - Free Report) . While Manhattan Associates sports a Zacks Rank #1, Watts Water and Microsoft carry a Zacks Rank of 2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MANH’s 2024 EPS has increased 3.6% in the past 60 days to $3.76. Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 78% in the past year.
The Zacks Consensus Estimate for Watts Water’s 2024 EPS has improved 3.1% to $8.56 in the past 60 days. The long-term earnings growth rate is pegged at 7.8%. Shares of WTS have jumped 25.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is pegged at 16.2%. MSFT has gained 56.6% in the past year
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Badger Meter (BMI) Rises 35% in a Year: Will the Rally Last?
Badger Meter, Inc (BMI - Free Report) is continuing its upward trajectory, with a gain of 34.6% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 32.9% and 20.2%, respectively.
Headquartered in Milwaukee, WI, Badger Meter 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 providing valuable and timely measurement data.
The company’s cloud-hosted software suite, BEACON, allows consumer engagement tools that permit end-water customers to view and manage their water usage activity. The ORION branded family of radio endpoints includes ORION (ME), ORION (SE) applications and ORION Cellular for an infrastructure-free AMI solution.
Image Source: Zacks Investment Research
BMI witnessed earnings growth of 16.6% in the past five years, higher than the industry average of 10.2%. The stock has an impressive long-term earnings per share (EPS) growth expectation of 12.3%, higher than the industry average of 11.7%.
BMI carries a Zacks Rank #2 (Buy) at present.
Apart from a favorable rank, BMI has a Growth Score of A. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
The stock is down 10% from its 52-week high level of $170.86, making it relatively affordable for investors.
Catalysts Driving Growth
Badger Meter’s performance is being driven by robust demand across all business segments and increased adoption of its differentiated smart water solutions. Continued strength in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues bode well along with rising demand for water quality and pressure monitoring systems.
In the fourth quarter of 2023, utility water sales rose 28% year over year. Flow instrumentation sales increased 7% year over year, driven by continued demand across most of the water-focused end market.
Also, the company’s margins benefited from higher volumes and structural positive sales mix trends. In the last reported quarter, operating earnings were $32.1 million or 17.6% of sales compared with $22.5 million or 15.3% of sales in the year-ago quarter.
BMI broadens the scope of its products and services across the smart water solutions and water measurement market through focused acquisitions. In January 2024, management 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, BMI 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 to provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Badger Meter is likely to benefit from a strong cash position driven by solid earnings conversion. As of Dec 31, 2023, Badger Meter had $191.7 million in cash and cash equivalents with no long-term debt.
Estimate Revision Activity
Badger Meter’s EPS is expected to increase 8.3% and 11.4% from the year-ago levels to $3.40 and $3.79 in 2024 and 2025, respectively. The Zacks Consensus Estimate for 2024 and 2025 earnings has increased 1.5% and 2.2%, respectively, in the past 60 days, reflecting analysts’ optimism.
The company’s revenues for 2024 and 2025 are projected to rise 6.6% and 7.3% to $749.8 million and $804.2 million, respectively.
Other Stocks to Consider
Some other top-ranked stocks worth consideration in the broader technology space are Manhattan Associates (MANH - Free Report) , Watts Water Technologies (WTS - Free Report) and Microsoft (MSFT - Free Report) . While Manhattan Associates sports a Zacks Rank #1, Watts Water and Microsoft carry a Zacks Rank of 2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MANH’s 2024 EPS has increased 3.6% in the past 60 days to $3.76. Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 78% in the past year.
The Zacks Consensus Estimate for Watts Water’s 2024 EPS has improved 3.1% to $8.56 in the past 60 days. The long-term earnings growth rate is pegged at 7.8%. Shares of WTS have jumped 25.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is pegged at 16.2%. MSFT has gained 56.6% in the past year