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Here's How Much a $1000 Investment in Badger Meter Made 10 Years Ago Would Be Worth Today

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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.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Badger Meter (BMI - Free Report) 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

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Badger Meter, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in September 2014 would be worth $8,323.85, or a 732.39% gain, as of September 18, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 181.51% and gold's return of 101.51% over the same time frame.

Analysts are anticipating 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 propelled 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 expand global market penetration. However, it expects to witness tougher year-over-year comparisons as the year progresses and expects higher expenses owing to accretive investment strategies. A rise in copper prices is a headwind.

Shares have gained 6.02% 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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