Raymond James has initiated its coverage of Badger Meter (BMI, Financial), assigning the company a Market Perform rating. This move reflects the firm's analysis of the company's current market position and growth potential. Investors looking for insights into Badger Meter's performance can now consider this rating in their investment decisions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Badger Meter Inc (BMI, Financial) is $225.59 with a high estimate of $260.00 and a low estimate of $198.12. The average target implies an downside of 10.39% from the current price of $251.74. More detailed estimate data can be found on the Badger Meter Inc (BMI) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Badger Meter Inc's (BMI, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Badger Meter Inc (BMI, Financial) in one year is $220.91, suggesting a downside of 12.25% from the current price of $251.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Badger Meter Inc (BMI) Summary page.
BMI Key Business Developments
Release Date: April 17, 2025
- Total Sales Growth: 13% year-over-year in Q1 2025.
- Utility Water Product Line Sales: Increased 16% year-over-year.
- Flow Instrumentation Sales: Decreased nearly 5% year-over-year.
- Operating Profit Margins: Record 22.2%, expanding 360 basis points year-over-year.
- Gross Profit Margins: 42.9%, a 360 basis point improvement from the prior year.
- Software Revenue Growth: Up 25% in the quarter.
- SEA Expenses: Increased by $5.4 million or 13% year-over-year to $46 million.
- Income Tax Provision: Increased to 24.4% from 23.5% in the prior year.
- EPS: Increased 31% to $1.30 from $0.99 in the prior year comparable quarter.
- Free Cash Flow: $30 million, up 60% from $18.8 million in the prior year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Badger Meter Inc (BMI, Financial) reported a strong start to the year with solid revenue growth and record operating margins.
- The acquisition of SmartCover has been positively received by customers, enhancing the BlueEdge suite of water management solutions.
- Total sales grew 13% year-over-year, with utility water product line sales increasing by 16%.
- The company achieved a record operating profit margin of 22.2%, with gross profit margins improving to 42.9%.
- Software revenue grew by 25% in the quarter, contributing significantly to the positive sales mix.
Negative Points
- Sales for the flow instrumentation product lines decreased nearly 5% year-over-year due to lower demand in certain market applications.
- There is significant uncertainty surrounding tariffs and the macroeconomic situation, which could impact future margins.
- The company faces potential import tariff exposure on electronics and components from various countries, which could increase costs.
- SEA expenses increased by 13% year-over-year, partly due to the SmartCover acquisition.
- The income tax provision increased to 24.4% from 23.5% in the prior year, impacting net earnings.
