Badger Meter, Inc. (BMI) on Decifer

Why it ranks here

• It earns strong returns on the money it puts to work, around 17% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 11% a year and profits grew 13% over the past year.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders and its own insiders have been buying.
• Returns around 17% and insider buying are real, but no reason to grow and momentum at 1 below trend in a lagging sector caps the score.

The current read

The evidence on BMI lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. The independent signals we track are telling the same story.

Themes

• Electrification & Grid Modernization: Rising electricity demand from electrification, renewables interconnection and aging grid infrastructure is triggering a multi-year transmission and distribution capex cycle.

Read the full BMI research brief · See all quality rankings

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