Badger Meter (BMI): Assessing Valuation After Recent Share Price Decline

Badger Meter (BMI) shares have caught investors' attention after recent price moves, with the stock down 5% over the past month and off 11% for the past 3 months. This performance brings Badger Meter’s moves into sharper focus for those tracking the water technology sector.

See our latest analysis for Badger Meter.

While Badger Meter’s share price return has faded, with a year-to-date drop of 20.6% and a 1-year total shareholder return of -22.6%, the five-year total return still more than doubles investors’ money at 114%. This shift in momentum suggests the market remains cautious even as long-term growth trends persist.

If the latest moves in Badger Meter have you rethinking your watchlist, this could be the right moment to discover fast growing stocks with high insider ownership.

With shares significantly below analyst price targets, investors are left to wonder: is Badger Meter now undervalued given its steady financial growth, or is the market simply factoring in all of its future prospects already?

Most Popular Narrative: 23% Undervalued

With Badger Meter's widely followed narrative fair value of $219.50 compared to a last close of $168.16, the narrative points to considerable upside if projections are met. The gap between valuation and current price comes down to whether the company's future growth story plays out as anticipated.

The increasing emphasis on water conservation and sustainable infrastructure is driving elevated demand from utilities for advanced metering and monitoring solutions. Badger Meter's continued success with its BEACON SaaS platform, BlueEdge suite, and recent SmartCover acquisition positions the company to capture a larger share of this growing market, supporting high single-digit revenue growth targets over the long run.

Read the complete narrative.

Curious what ambitious revenue and margin forecasts are behind this bullish price target? The narrative’s growth expectations borrow optimism from major technology pivots and new market share grabs. Uncover the key financial levers that could unlock the sharp price jump analysts see ahead.

Result: Fair Value of $219.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing trade policy uncertainty and uneven municipal project demand could trigger margin pressure or earnings volatility if conditions worsen.

Find out about the key risks to this Badger Meter narrative.

Another View: What Do Valuation Ratios Say?

While growth forecasts point to upside, Badger Meter’s price-to-earnings ratio of 35.7x stands well above both the industry average of 23.8x and its own fair ratio of 24.5x. This premium suggests investors are paying up for strong prospects. However, how much risk does that really add if sentiment turns?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Badger Meter Narrative

If you see the numbers differently or want to dig deeper into the underlying trends, take a few minutes to craft your own thesis. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Badger Meter.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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