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:
We started the process of determining a valid price forecast for Badger Meter Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Badger Meter Inc ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 45.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Badger Meter Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 410.01; that's higher than 99.23% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 3.01% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BMI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 61.14% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HQI, LII, GTES, IR, and TNET can be thought of as valuation peers to BMI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Badger Meter ([[BMI]] +2.6%) is initiated with a Buy rating and $71 price target at Argus Research as a "well managed company [with] a long record of market outperformance and dividend growth."Analysts John Eade and Angus Kelleher-Ferguson think the company - which designs liquid flow measurement products and related communications...
In this article we will take a look at whether hedge funds think Badger Meter, Inc. (NYSE:BMI) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]