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Is Badger Meter, Inc. (NYSE:BMI) Potentially Underrated?

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Badger Meter, Inc. (NYSE:BMI) due to its excellent fundamentals in more than one area. BMI is a notable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Badger Meter here.

Flawless balance sheet average dividend payer

BMI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BMI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. BMI appears to have made good use of debt, producing operating cash levels of 6.5x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:BMI Historical Debt, July 19th 2019

For those seeking income streams from their portfolio, BMI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.2%.

NYSE:BMI Historical Dividend Yield, July 19th 2019

Next Steps:

For Badger Meter, I've compiled three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for BMI’s future growth? Take a look at our free research report of analyst consensus for BMI’s outlook.
  2. Historical Performance: What has BMI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BMI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.