We have issued an updated research report on Badger Meter Inc. BMI on Jun 29, 2016. The manufacturer of liquid flow measurement products and control technologies is expected to benefit from expansion of its sales channels. It will also benefit from investment in new products and momentum in residential and commercial municipal water products.
Notably, Badger Meter’s Municipal water product sales represented 76.9% of sales in first-quarter 2016 while Flow instrumentation products represented only 23.1%. The company is making progress on the expansion of its sales channels, which will benefit Flow instrumentation sales in the coming quarters. This will help in balancing stronger municipal sales with weaker flow instrumentation sales.
Further, Badger Meter continues to invest in new products and product enhancements that will drive future growth. The company anticipates sales growth in E-Series Ultrasonic meters lines and ORION Cellular endpoints. It continues to ship these meters to customers in the Middle East and views the market as a significant opportunity for future growth.
Badger Meter expects additional sales from the three-year contract with American Water – the largest publicly traded water and wastewater utility company in the U.S. The company also expects shipments to ramp up as the contract moves toward full implementation.
Badger Meter also remains financially strong with lower debt burden. The company reported cash and cash equivalents of $9.9 million at the end of the first quarter, up from $8.1 million at 2015 end.
Badger Meter currently has a Zacks Rank #2 (Buy).
Stocks to Consider
Some other stocks worth considering in the same sector include Nanometrics Inc. NANO, Allied Motion Technologies Inc. AMOT and Agilent Technologies, Inc. A. While Nanometrics Incorporated sports a Zacks Rank #1 (Strong Buy), Allied Motion Technologies and Agilent Technologies carry a Zacks Rank #2 (Buy).
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