Added to YB: 2026-04-23
Pitch date: 2026-04-21
BMI [neutral]
Badger Meter, Inc.
+1.85%
current return
Author Info
No bio for this author
Company Info
Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide.
Market Cap
$3.3B
Pitch Price
$121.32
Price Target
N/A
Dividend
1.41%
EV/EBITDA
15.05
P/E
25.65
EV/Sales
3.46
Sector
Electronic Equipment, Instruments and Components
Category
turnaround
Badger Meter: Temporary Air Pocket or Permanently Broken?
BMI (update): Q1 rev -9%, op margin 22.2%→17.4%, EPS -28.5%. Short-cycle orders missed internal forecast by $15-20M w/ no clear reason. Mgmt dodged pricing question on new projects, raising concern ASPs compressed vs 2022-23. PRASA (largest contract ever) has below-avg gross margins. Bull case: gross margin held 41.7%, taking share (7/9 new projects are conversions), 2.6-3.6M connection pipeline vs 800K prior cohort. FY26 guide: flat organic growth, Q2 down YoY, H2-weighted. At 21x FCF (vs 43x 5yr avg), valuation reset creates opportunity if H2 inflection materializes, but Q2 is key test.
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