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Badger Meter (BMI) Faces Class Action Lawsuits, Is The Stock Cheap?

Simply Wall St · 1d ago

Badger Meter (BMI) is back in focus after multiple law firms announced securities class action lawsuits alleging the company pulled forward customer orders to inflate revenue, shortly after management pointed to roughly flat organic growth.

See our latest analysis for Badger Meter.

The latest lawsuits and softer earnings have come after a sharp reset in expectations, with Badger Meter’s share price return down 28.39% year to date and its 1 year total shareholder return down 33.86%, despite a 5 year total shareholder return gain of 30.06%. This suggests longer term holders have still seen positive overall results.

If you are reassessing Badger Meter after this legal and earnings news, it can help to compare it with other companies facing their own turning points by scanning 35 power grid technology and infrastructure stocks

Badger Meter still looks like a solid water technology business on paper, yet the share price reset, weaker recent earnings and lawsuits raise a sharper question: is today’s valuation really aligned with what you are getting?

Most Popular Narrative: 14.1% Undervalued

Compared with Badger Meter’s last close at $126.32, the most followed narrative pegs fair value at $147.00, so the story behind that gap really matters.

The increasing emphasis on water conservation and sustainable infrastructure is driving elevated demand from utilities for advanced metering and monitoring solutions; Badger Meter's continued success with its BEACON SaaS platform, BlueEdge suite, and recent SmartCover acquisition positions the company to capture a larger share of this growing market, supporting high single-digit revenue growth targets over the long run.

Read the complete narrative.

Want to see what earnings profile and margin path sit behind that fair value for Badger Meter? The core narrative leans on steadily compounding revenue, rising profitability and a future valuation multiple that assumes investor confidence holds up. Curious how those moving parts fit together in the model and what has to go right for $147.00 to stack up?

Result: Fair Value of $147.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the class action lawsuit and recent revenue and margin pressure at Badger Meter could challenge confidence in the current fair value story.

Find out about the key risks to this Badger Meter narrative.

Next Steps

With sentiment clearly split on Badger Meter after the lawsuits and valuation debate, it makes sense to review the core data yourself and move quickly to form your own view by weighing the 3 key rewards

Looking for more investment ideas beyond Badger Meter?

Once you have formed a view on Badger Meter, do not leave the rest of your portfolio to chance. Use data driven stock lists to pressure test your ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.