Badger Meter sells meters that measure water (90% of product use), oil, steam, air, gas, and other liquids. Two entrepreneurs in Milwaukee founded Badger in 1905 after developing a “frost-proof” water meter. Quality (4/5) Starting with Badger’s historical performance, long-term sales growth is in the mid-single digits. Sales are cyclical, with declines in ‘08-09, ‘11, ‘17, and ‘19-20. Management would cite “innovation delays”, “deferred orders of new technologies”, pullbacks in the oil & gas industry, or sporadic foreign sales during declines. Recent sales growth is far above average at 20%+. About 87% of sales are based in the United States. Leverage on the balance sheet is consistently low at around 1.4X, as measured as total assets divided by total equity. EBIT margins are back to a high point after falling below average for several years. The growing software business should eventually help boost margins as it becomes a bigger portion of total sales. Badger is on 30 consecutive years of increasing dividend payments, making it a “dividend aristocrat”.
Badger Meter (BMI)
Badger Meter (BMI)
Badger Meter (BMI)
Badger Meter sells meters that measure water (90% of product use), oil, steam, air, gas, and other liquids. Two entrepreneurs in Milwaukee founded Badger in 1905 after developing a “frost-proof” water meter. Quality (4/5) Starting with Badger’s historical performance, long-term sales growth is in the mid-single digits. Sales are cyclical, with declines in ‘08-09, ‘11, ‘17, and ‘19-20. Management would cite “innovation delays”, “deferred orders of new technologies”, pullbacks in the oil & gas industry, or sporadic foreign sales during declines. Recent sales growth is far above average at 20%+. About 87% of sales are based in the United States. Leverage on the balance sheet is consistently low at around 1.4X, as measured as total assets divided by total equity. EBIT margins are back to a high point after falling below average for several years. The growing software business should eventually help boost margins as it becomes a bigger portion of total sales. Badger is on 30 consecutive years of increasing dividend payments, making it a “dividend aristocrat”.