Badger Meter: Deserving Of An Upgrade Following A Healthy Value Contraction (Rating Upgrade)
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Given Mahlangu216 FollowersFollow5ShareSavePlay(11min)CommentsSummaryWhen I initially wrote about Badger Meter (BMI), its PE multiple was trading at 50x. I titled my article "Priced to Perfection" as I believed the valuation was underserved.Since the multiple has contracted to 36 PE, which I think is fair given that it is in line with Xylem's valuation while having a superior business model.The firm is expanding margins. increasing revenue and maintaining a healthy balance; therefore, I think an upgrade to hold is warranted. Toa55/iStock via Getty Images Thesis review In June of last year, I wrote an article covering Badger Meter (BMI) with the title "Priced to Perfection." In the article I had a bearish take on this name, simply stating that theThis article was written byGiven Mahlangu216 FollowersFollowFull-time Equity Analyst and part-time retail investor with a bias for high quality stocks trading at discounted prices. over the past 5 years I've been retail investing and learning more about how the stock market works, following the work of Ben Graham and Joel Greenblatt. Equity Markets are fascinating as they give us an analytical overview of how global markets are performing. Seeking Alpha is an incredible platform for me to share my research and analysis with fellow investors and analysts.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.