For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Badger Meter (BMI) ten years ago? It may not have been easy to hold on to BMI for all that time, but if you did, how much would your investment be worth today?
Badger Meter's Business In-Depth
With that in mind, let's take a look at Badger Meter's main business drivers.
Incorporated in 1905 and headquartered in Milwaukee, WI, Badger Meter, Inc. is a leading provider of water solutions, which include flow measurement, quality and other system parameters. The company’s products measure water, oil, chemicals, and other fluids and are known for accuracy, long-lasting durability, and for providing valuable and timely measurement data. The company’s cloud-hosted software suite, BEACON, allows consumer engagement tools that permit end-water customers to view and manage their water usage activity. The ORION branded family of radio endpoints includes ORION (ME), ORION (SE) applications, and ORION Cellular for an infrastructure-free AMI solution.
Badger Meter’s product lines fall into two categories — utility water and flow instrumentation. The utility water product line consists of either mechanical or static (ultrasonic) water meters and related radio and software technologies and services that are used by water utilities to generate water and wastewater revenues. Badger Meter estimates that about 70% of water meters installed in the United States have been converted to some form of radio solution technology.
The flow instrumentation product line mainly caters to water applications in the wider industrial markets. This product line consists of meters, valves, and other sensing devices for measuring and controlling the volume of liquids and gases, such as water, air, and steam, that pass through a pipe or pipeline. Badger Meter estimates that more than 90% of its products are used in water-related applications. Typically, flow instrumentation instruments are sold through manufacturers' agents and to original equipment manufacturers as the main flow-measuring component of a system or product.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Badger Meter a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2014 would be worth $8,842.83, or a gain of 784.28%, as of October 4, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 189.65% and the price of gold increased 114.20% over the same time frame in comparison.
Going forward, analysts are expecting more upside for BMI. Solid customer demand for its unique smart water solutions and disciplined operational execution is driving Badger Meter’s performance. The robust adoption of cellular AMI solutions, including E-Series ultrasonic meters, ORION Cellular endpoint sales and increased BEACON Software-as-a-Service sales boosted the firm’s top-line growth in the second quarter. Margins are gaining from higher volumes and positive SEA leverage. A debt-free balance sheet and frequent product launches bode well. An incremental customer backlog conversion is a tailwind. With the launch of BlueEdge in this quarter, the company aims to expandglobal marketpenetration. However, it expects to witness tougher year-over-year comparisons as the year progresses and expects higher SEA expenses owing to accretive investment strategies. A rise in copper prices is a headwind. Shares have gained 13.81% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
