Badger Meter: Compounding Intrinsic Worth At Attractive Rates

Aug. 21, 2024 4:20 PM ETBadger Meter, Inc. (BMI) StockBMI10 Comments
Zach Bristow
4.17K Followers
(10min)

Summary

  • Badger Meter stock is up 32% following my last buy recommendation, with potential for further multiple expansion.
  • The company is compounding capital at high rates, creating economic value for shareholders, and is worth more than its current market value in my view.
  • Valuation scenarios suggest a potential for a further 17% expansion in EV/IC multiples.

New York Stock Exchange, Wall st, New York, USA

Matteo Colombo

Investment Update

Following my January publication on Badger Meter (NYSE:BMI) reiterating it a buy, the stock is +32% with multiple updates to the investment debate. Following its Q2 FY'24 numbers, my conviction on the company remains, and my view is that, the

This article was written by

4.17K Followers
Equity strategist (US Equities)Technical focus on fundamental value drivers of business economics to uncover high probability long-term compounders. Seeking to buy at appropriate prices relative to intrinsic worth. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures & options markets. Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Conduct your own due diligence. The Company accepts no responsibility for personal decisions made. Opinions of The Company and its affiliates may change from time to time without prior acknowledgement. The Company and its representatives share no economic relationship with any entities in which it holds common stock investments.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BMI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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