Badger Meter, Inc. Net Income increased on 4.6% and Revenue showed almost no change
01/29/2021 • About Badger Meter, Inc. (
$BMI) • By InTwits
Badger Meter, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Badger Meter, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 14.0%.
- CAPEX is quite volatile: $1,129m in FY2020, $10m in FY2019, $7m in FY2018, $4m in FY2017, $2m in FY2016
- The company has highly profitable business model: ROIC is 18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Badger Meter, Inc.'s Revenue showed almost no change in FY2020. Revenue growth showed acceleration in FY20Q4 - it increased 4.4% YoY. EBITDA Margin showed almost no change in FY2020.
Gross Margin increased slightly on 1.0 pp from 38.5% to 39.5% in FY2020. SG&A as a % of Revenue showed almost no change in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 23.9%.
Net Income margin showed almost no change in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.1%. Badger Meter, Inc.'s CAPEX/Revenue decreased slightly on 1.6 pp from 3.7% in FY2017 to 2.1% in FY2020. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at good ROIC (18.5%) and ROE (14.3%). ROIC showed almost no change in FY2020. ROE decreased slightly on 0.61 pp from 14.9% to 14.3% in FY2020.
Leverage (Debt)
The company paid down all the debt in FY2020. Cash jumped on 47.9%.
Valuation and dividends
The company's trades at EV/EBITDA 28.6x and P/E 53.9x.
Management team
Kenneth C Bockhorst "Ken" is a Badger Meter, Inc.'s CEO. Kenneth C Bockhorst "Ken" has spent 2 years with the company. Badger Meter, Inc.'s CFO is Robert A Wrocklage "Bob". Robert A Wrocklage "Bob" has 2 years tenure at the company.
Financial and operational results
Badger Meter, Inc. ($BMI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 393.8 | 402.4 | 433.7 | 424.6 | 425.5 | 0.2% |
| Gross Profit | 150.6 | 155.7 | 162.3 | 163.5 | 168.2 | 2.9% |
| SG&A | 99.8 | 99.2 | 105.5 | 101.4 | 103.1 | 1.7% |
| EBITDA | 73.2 | 81.0 | 81.2 | 89.4 | 90.4 | 1.1% |
| Net Income | 32.3 | 34.6 | 27.8 | 47.2 | 49.3 | 4.6% |
Balance Sheet
|
|---|
| Cash | 7.3 | 11.2 | 13.1 | 48.9 | 72.3 | 47.9% |
| Short Term Debt | 38.0 | 44.6 | 18.1 | 7.3 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 6.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 10.6 | 15.1 | 8.6 | 7.5 | 9.1 | 20.9% |
Ratios
|
|---|
| Revenue growth | 4.3% | 2.2% | 7.8% | -2.1% | 0.2% | |
| EBITDA growth | 16.3% | 10.6% | 0.2% | 10.1% | 1.1% | |
|
|---|
| Gross Margin | 38.2% | 38.7% | 37.4% | 38.5% | 39.5% | 1.0% |
| EBITDA Margin | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% | 0.2% |
| SG&A, % of revenue | 25.3% | 24.6% | 24.3% | 23.9% | 24.2% | 0.4% |
| Net Income Margin | 8.2% | 8.6% | 6.4% | 11.1% | 11.6% | 0.5% |
| CAPEX, % of revenue | 2.7% | 3.7% | 2.0% | 1.8% | 2.1% | 0.4% |
|
|---|
| ROIC | 16.9% | 18.2% | 17.6% | 18.7% | 18.5% | -0.3% |
| ROE | 13.2% | 13.0% | 9.6% | 14.9% | 14.3% | -0.6% |
| Net Debt/EBITDA | 0.4x | 0.4x | 0.1x | -0.4x | -0.8x | -0.4x |
Badger Meter, Inc. ($BMI) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 109 | 91 | 114 | 112 | | 3.5% | -12.0% | 4.5% | 4.4% |
| EBITDA | 23 | 20 | 27 | 23 | | 7.7% | -10.3% | 16.6% | 0.0% |
| Net Income | 12 | 10 | 15 | 13 | | 9.5% | -16.1% | 16.8% | 6.7% |
Balance Sheet
|
|---|
| Cash | 70 | 85 | 94 | 72 | | 368.1% | 256.6% | 148.9% | 47.9% |
| Short Term Debt | 6 | 6 | 1 | 0 | | -51.4% | -3.7% | -87.2% | -100.0% |
| Long Term Debt | 6 | 6 | 7 | 0 | | -25.8% | -26.6% | -21.6% | -100.0% |
Ratios
|
|---|
| Gross Margin | 39.9% | 39.3% | 39.6% | 39.2% | | 1.4% | 0.4% | 1.3% | 1.0% |
| EBITDA Margin | 21.2% | 21.6% | 23.5% | 20.7% | | 0.8% | 0.4% | 2.4% | -0.9% |
| Net Income Margin | 10.9% | 10.5% | 13.1% | 11.7% | | 0.6% | -0.5% | 1.4% | 0.2% |
Peers in Electronic Equipment & Instruments
Below we provide Badger Meter, Inc. benchmarking against other companies in Electronic Equipment & Instruments industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | - | -6.3% | 23.2% | 72.9% | 40.1% |
| nLIGHT, Inc. ($LASR) | - | 36.8% | 38.1% | -7.7% | 26.1% |
| Luna Innovations Incorporated ($LUNA) | - | -21.0% | 29.7% | 64.3% | 17.3% |
| PAR Technology Corporation ($PAR) | - | 1.3% | -13.5% | -7.0% | 14.2% |
| Cognex Corporation ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 5.0% | 11.6% | 5.2% | -3.5% |
|---|
| Badger Meter, Inc. ($BMI) | - | 2.2% | 7.8% | -2.1% | 0.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | 80.0% | 85.5% | 91.3% | 87.0% | 86.7% |
| Cognex Corporation ($CGNX) | 75.2% | 75.6% | 74.4% | 73.8% | 74.5% |
| National Instruments Corporation ($NATI) | 74.5% | 74.5% | 75.4% | 75.1% | 71.2% |
| Coda Octopus Group, Inc. ($CODA) | - | 66.4% | - | 65.6% | 63.5% |
| Applied DNA Sciences Inc ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 40.7% | 41.7% | 40.9% | 43.2% | 44.0% |
|---|
| Badger Meter, Inc. ($BMI) | 38.2% | 38.7% | 37.4% | 38.5% | 39.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Keysight Technologies Inc. ($KEYS) | 18.5% | 14.6% | -0.9% | 23.7% | 27.0% |
| Cognex Corporation ($CGNX) | 31.9% | 36.0% | 30.1% | 24.0% | 25.3% |
| National Instruments Corporation ($NATI) | 15.7% | 16.9% | 17.9% | 20.0% | 22.3% |
| FLIR Systems, Inc. ($FLIR) | 21.3% | 20.0% | 21.7% | 20.6% | 22.0% |
| Track Group Inc ($TRCK) | -3.5% | -1.4% | 7.6% | 15.4% | 21.0% |
| |
|---|
| Median (26 companies) | 2.9% | 4.1% | 3.3% | 12.0% | 8.7% |
|---|
| Badger Meter, Inc. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Know Labs Inc ($KNWN) | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% |
| Applied DNA Sciences Inc ($APDN) | 16.1% | 3.1% | 6.8% | 1.3% | 55.1% |
| nLIGHT, Inc. ($LASR) | 4.0% | 4.0% | 6.1% | 7.7% | 10.9% |
| Vishay Precision Group, Inc. ($VPG) | 4.6% | 2.7% | 4.8% | 3.9% | 8.5% |
| LightPath Technologies, Inc. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (25 companies) | 2.0% | 1.6% | 2.3% | 2.0% | 2.8% |
|---|
| Badger Meter, Inc. ($BMI) | 2.7% | 3.7% | 2.0% | 1.8% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zebra Technologies Corporation ($ZBRA) | 2.2% | 10.2% | 20.8% | 23.2% | 20.0% |
| Keysight Technologies Inc. ($KEYS) | 16.9% | 6.8% | -8.0% | 15.6% | 15.1% |
| National Instruments Corporation ($NATI) | 10.3% | 12.5% | 14.2% | 13.9% | 14.8% |
| Cognex Corporation ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| NAPCO Security Technologies, Inc. ($NSSC) | - | - | - | 19.8% | 13.6% |
| |
|---|
| Median (26 companies) | 2.1% | 2.6% | 0.9% | 7.8% | 3.4% |
|---|
| Badger Meter, Inc. ($BMI) | 16.9% | 18.2% | 17.6% | 18.7% | 18.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Identiv, Inc. ($INVE) | - | - | 2.1x | 1.9x | 9.0x |
| Itron, Inc. ($ITRI) | 1.0x | 2.0x | 12.3x | 3.2x | 7.3x |
| Track Group Inc ($TRCK) | - | - | 12.2x | 5.2x | 3.5x |
| Trimble Inc. ($TRMB) | 1.1x | 1.3x | 3.4x | 2.9x | 2.2x |
| Luna Innovations Incorporated ($LUNA) | -6.9x | -108.1x | -19.9x | -2.9x | 1.8x |
| |
|---|
| Median (16 companies) | -0.9x | -0.9x | -1.0x | 0.5x | 0.7x |
|---|
| Badger Meter, Inc. ($BMI) | 0.4x | 0.4x | 0.1x | -0.4x | -0.8x |
