Skip to content
Compounder
← Stocks

Badger Meter Inc

BMIAbove valueExpectations · modest

Held by 4 superinvestors.

Price$131.81
Holders4
Total value$70.8M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+10.9%
Net margin
15.5%
ROE
19.9%
FCF margin
18.5%
Revenue $425.5M → $916.7M · 6y

Fundamentals data incomplete — read with care.

What makes a business high quality

Valuation · value band

Above fair value

$75/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$132
cheaperpricier

Zero-growth floor

$34

Central IV

$75

Optimistic top

$129

Badger Meter Inc (BMI): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $34–$129 / sh. Today’s price sits above both (price $132 as of 2026-08-21).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 9% (lower of historical trend and fundamental cap, capped by moat) · moat 20 yr · discount 10.6% · Zero-growth downside $34

Price as of 2026-08-21 · yahoo · DGS10 4.7% @ 2026-08-20.

Method & numbers

Model cautions

  • The two methods’ midpoints differ materially — growth assumptions warrant review (over 20%).
  • Growth nearly matches the discount rate — the estimate is sensitive to assumptions.

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $39.04 – $93.27 · Greenwald $64.56 – $128.86 (neutral $97.83) · zero-growth base $45.51 · reproduction $8.98

Moat Franchise (moat) · terminal value 26% of present value · owner-earnings yield 3% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$37.23 – $45.51 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (ok) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$33.77 – $41.28 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (ok); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $217.73M + capitalized R&D $43.88M（FY 2026, 2024, 2023, 2022） = $8.98 / sh. Reproduction value = tangible net assets (equity − goodwill − intangibles) + capitalized R&D (5y straight-line), ÷ diluted shares.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a wide moat · competitive-advantage period ≈ 20 years (earnings intact, ROIC stable over history).

Growth value: if the moat holds for 20 yr at ROIIC ≈ 50%, $19.06–$83.36 / sh (neutral $52.32). Conservative, not a forecast.

Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 9% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.19%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-20). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 26%.

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about 16.1% a year in owner-earnings for the next few years. Revenue actually grew 17.1% a year.

Below what it has already done.

Roughly, the price needs its historical revenue growth to run about 12 more years to hold up.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

4 holders · $70.8M combined · this quarter +1 opened / -0 exited

This quarter1 opened3 added
Holders 1 → 4 · last 5q

SEC 13F · notes

Written summary

Badger Meter Inc (BMI) is held by 4 of the superinvestors tracked on Compounder, with a combined $70.8M in reported 13F value. The largest position belongs to Jeremy Grantham, where it makes up 0.1% of the portfolio.

Other notable holders by value include Terry Smith (0.2% of its book), C.T. Fitzpatrick (0.3% of its book) and Jim Cullen (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in BMI, 3 added to existing ones, 0 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Badger Meter Inc (BMI) also commonly hold →

BMI's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

Stay Updated

New-quarter 13F moves and valuation updates, to your inbox.