| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 29.2x | 17.8x | Bottom tier | |
Growth | 54 | 0.8% | 7.1% | Around median | |
Quality | 82 | 17.8% | 4.5% | Top tier | |
Safety | 87 | — | 2.6x | Top tier | |
Capital Return | 63 | 1.27% | 2.12% | Around median | |
Momentum | 20 | -25.9% | 2.9% | Bottom tier | |
Sentiment | 92 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Badger Meter provides water measurement and management solutions for utilities, combining mechanical and ultrasonic water meters, advanced metering infrastructure AMI, a Network as a Service platform, and device-connected software. Its ecosystem includes ORION Cellular, BEACON, EyeOnWater Premium, and Cobalt, alongside stormwater and sewer line applications from SmartCover and UDlive; it therefore generates revenue from hardware, software, turnkey projects, and product-supply projects across the entire water cycle.
In Q2 fiscal 2026, revenue was $222.3 million, down 7% year over year, while core revenue declined 7.5% after excluding about $2 million in UDlive sales over two months. Despite the year-over-year contraction, core sales rose 9% sequentially, benefiting from the start of shipments for several awarded AMI projects, including PRASA. Water utility sales declined 8% year over year, or 9% excluding UDlive, while flow instrumentation sales increased 6%, supported broadly by water applications.
Gross profit in Q2 fiscal 2026 was approximately $90.8 million, equivalent to a gross margin of 40.8%, representing a year-over-year decline of 30 basis points. Net income was $29.7 million, or about 13.4% of revenue, and diluted earnings per share were $1.02, down 13% year over year. Operating profit declined 12%, and its margin fell 110 basis points to 17.7%, but the core operating margin excluding UDlive was 18.4% and declined by only 40 basis points.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $153.2, within a wide range of $112 to $167, and is accompanied by a Neutral consensus rather than a Buy consensus; the average is also approximately 25% below the 52-week range high of $204 and about 37% above its low of $112.09. A price-to-earnings ratio is not available in the data, so the stock's valuation hinges on Badger Meter's ability to convert the expected shipment recovery in Q3 and Q4 fiscal 2026 into growth and profitability, weighed against the contraction in revenue, margins, and cash flow in Q2.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue declined 7% year over year to $222.3 million, and core sales fell 7.5% after excluding approximately $2 million in UDlive sales. The primary reason was the timing of AMI project execution, as water utility sales declined 8%, or 9% excluding the acquisition. In contrast, core sales rose 9% from Q1 as shipments for PRASA and other awarded projects began, while flow instrumentation grew 6%.
Management confirmed on July 22, 2026, that quarterly core revenue is expected to improve sequentially during the remainder of fiscal 2026. It expects full-year organic revenue to be near the fiscal 2025 level, with sequential growth in Q3 and a greater concentration of year-over-year improvement in Q4. This outlook depends on the start of execution for a portfolio of nine awarded projects, improved short-cycle orders, and other opportunities under negotiation.
Badger Meter began shipping products for the PRASA project by Q2 fiscal 2026, and the project is part of a portfolio of nine projects supporting the second-half outlook. Management confirmed on July 22, 2026, that its view of the project had not changed despite reviews and protests related to the procurement process. However, the pace of execution may be uneven because AMI projects combine supply and installation and may typically extend between three and five years.
Gross margin was 40.8% in Q2 fiscal 2026, down 30 basis points, while the core operating margin was 18.4%. The company uses spending discipline and pricing programs, and most project contracts extending for three, four, or five years include clauses that allow cost increases to be passed through. The risk remains because pressures on memory, capacitors, and circuit boards affect ORION Cellular, ultrasonic meters, and post-meter technologies, and cost pass-through mechanisms are not present in all contracts.
The company offers a choice between mechanical and ultrasonic meters within the BlueEdge portfolio, alongside ORION Cellular and Network as a Service offerings. The software layer includes BEACON Field, EyeOnWater Premium, and Cobalt functions integrated with artificial intelligence, while SmartCover and UDlive extend coverage to stormwater and sewer lines. At ACE 2026, customer and consultant interest also focused on dynamic multi-carrier SIM and ORION Lens, supporting an offering that combines hardware, connectivity, and software.
Free cash flow was $21.9 million in Q2 fiscal 2026, down from $40.6 million due to lower earnings and a temporary increase in working capital. The company repurchased 204 thousand shares for $25.3 million during that quarter, and about $80 million over three quarters, with approximately $90 million remaining under the authorization. It also renewed an undrawn $150 million credit facility for five years and targets annual cash flow conversion exceeding 100% of net income.
