Founded in 1905 and headquartered in Wisconsin, US, Badger Meter manufactures and markets flow measurement and control products, including smart meters, water quality monitoring and leak detection hardware. It offers communication solutions, data analytics software and support services, to optimize customers' operations worldwide.

Badger Meter has declared a regular quarterly cash dividend of $0.40 per share, payable on December 5, 2025, to shareholders on record on November 21, 2025. The company also expanded its share repurchase authorization, approving $75m, reflecting its strong financial position and commitment to returning value to shareholders. This move underscores Badger Meter’s confidence in its ongoing growth and profitability, supporting both dividend sustainability and capital allocation flexibility in the coming quarters.

Consistent growth

Badger Meter maintained strong performance over FY 21-24, achieving a revenue CAGR of 17.8%, reaching $827m in FY 24, driven by strong AMI (Advanced Metering Infrastructure) and software-related sales. EBIT rose at a CAGR of 26.2% to $158.0m, with margins expanding from 15.6% to 19.1%.

Over FY 21-24, FCF doubled from $62.7m to $114m, supported by cash from operations increasing from $87.5m to $155m. Cash and cash equivalent rose from $87.2m to $295m. In addition, its gearing improved from 1.5% to just 1%.

In comparison, Vishay Precision Group, Inc., a local peer, posted a negative revenue CAGR of minus 1.2% to $307m over FY 21-24. EBIT dropped at a CAGR of minus 15.5% to $18.1m. However, its margin contracted from 10.1% to 5.9%.

Positive outlook

Over the past year, the company's stock delivered negative returns of 19.5%. In comparison, Vishay Precision Group delivered higher returns of 56.2%. The company paid an annual dividend of $1.2 in FY 24, resulting in a dividend yield of 0.6%.

Badger Meter is currently trading at P/E of 37.3x, based on FY 25 estimated EPS of $4.8, which is lower than its 3-year historical average of 49.2x and just below that of Vishay Precision Group (49.8x). The company is currently trading at an EV/EBIT of 27.3x, based on the FY 25 estimated EBIT of $183.1m, which is lower than its 3-year historical average of 36.5x and Vishay Precision Group (28.1x).

The stock is covered by 11 analysts, with six having 'Buy' ratings and five having 'Hold' ratings for a target price of $219.5, reflecting 23.5% upside potential over its current market price.

Analysts' views are supported by an estimated EBIT is expected to rise at a CAGR of 11.4% to $218m over FY 24-27, with margins expanding by 140bp to 20.5% in FY 27. In addition, analysts estimate a net profit CAGR of 11.3% to $172m. In comparison, for Vishay Precision Group, analysts estimate an EBIT CAGR of 17.3% and a net profit CAGR of 31%.

Overall, Badger Meter's strong financial performance, strategic initiatives, and positive analyst outlook underscore its commitment to growth and shareholder value. With expanding margins and robust earnings projections, the company is well-positioned for continued success and long-term competitiveness in the industry. However, it faces risks from macroeconomic volatility, trade impacts, supply chain disruptions, acquisition integration uncertainties, extreme weather events, and competitive pressures, potentially affecting its margins and long-term growth.