Badger Meter Inc. offers flow measurement and control products, serving water utilities, municipalities, and commercial and industrial customers worldwide. The Company's products measure water, oil, chemicals, and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data. The company was founded in 1905 and is based in Milwaukee, Wisconsin.
BMI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Badger Meter Inc. To summarize, we found that Badger Meter Inc ranked in the 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 15.67%. The most interesting components of our discounted cash flow analysis for Badger Meter Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 100. Its equity weight surpasses that of 99.03% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Badger Meter Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6,426.2. This coverage rate is greater than that of merely 0.09% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BMI, try HURN, KAI, PKOH, TTEK, and CSX.
Though the recession crimped some end-markets of Badger Meter, Inc. (BMI) and took a toll on its top line, in August, the company increased the quarterly DPS by 5.9%. So, it appears that even a harsh crisis cannot shatter the dividend growth story of BMI, a company that has been...
Vasily Zyryanov on Seeking Alpha | September 27, 2020
This article series is designed to keep investors informed of upcoming dividend increases. Any company can increase its dividend, but these companies have a history of annual increases. For dividend growth investors, this can be an opportunity to start or add to positions prior to a new increased payout. This...
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