Analysts have slightly reduced their fair value estimate for Badger Meter to approximately $232.57, down from $237.43. They cite higher discount rate assumptions and near-term expectations for flat earnings, despite ongoing optimism for long-term growth and industry tailwinds.
Analyst Commentary
Recent Street research illustrates a mix of optimism and caution among analysts covering Badger Meter. While there is continued recognition of the company’s long-term strengths, several near-term challenges have also been highlighted.
Bullish Takeaways
- Analysts highlight Badger Meter’s leadership and innovation in water technology as integral to its long-term appeal.
- Exposure to systemic trends, such as water scarcity and the need for modernization of aging water infrastructure, positions the company for multi-decade growth opportunities.
- Expectations remain for sales growth to reaccelerate within the next few years. This signals resilience and favorable industry demand.
- Badger Meter is viewed as an attractive core holding for investors seeking sustainable, industrial-focused growth.
Bearish Takeaways
- Some analysts foresee operating expenses rising in the near term. This may limit earnings growth despite improved sales estimates.
- Expectations are for earnings per share to remain flat over the next several quarters, reflecting ongoing cost pressures.
- Target price reductions by analysts reflect concerns over short-term valuation and the company’s execution amid higher expenses.
- While the long-term outlook is positive, analysts are cautious about the possibility of muted performance in the coming quarters.
What's in the News
- The Board of Directors authorized an 18% increase in the quarterly common stock dividend to $0.40 per share. This raises the annual dividend rate to $1.60 per share, effective for shareholders of record on August 22, 2025 and payable on September 5, 2025 (Key Developments).
- From April 1, 2025 to June 30, 2025, the company reported no shares repurchased under its ongoing share buyback program announced in February 2023 (Key Developments).
Valuation Changes
- Fair Value Estimate: Has decreased slightly from $237.43 to $232.57 per share.
- Discount Rate: Has risen modestly from 8.14% to 8.22%.
- Revenue Growth: Remains unchanged at approximately 8.53%.
- Net Profit Margin: Remains stable at 16.31%.
- Future P/E Ratio: Has fallen modestly from 47.79x to 46.91x.
Disclaimer
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