Can Badger Meter (BMI) Justify Its Valuation After Flat Q3 Sales And Stronger Guidance?

How Q3 results and shareholder moves reshaped the Badger Meter story

Badger Meter (BMI) set its latest tone with a Q3 2026 update that paired almost flat revenue with higher earnings per share, a fresh dividend increase, and ongoing buybacks.

Sales for the quarter came in at US$235.94 million compared with US$235.65 million a year earlier, while diluted EPS from continuing operations reached US$1.24 versus US$1.19. Over the same period, the business returned US$55 million via repurchases, retiring 407,677 shares and completing a broader program totaling 850,465 shares since late 2025.

Recent trading has swung sharply in Badger Meter’s favor, with a 7 day share price return of 19.58% and a 90 day gain of 19.73%. These gains have clustered around the Q3 earnings beat, dividend hike, buybacks, and OneNetwork launch, even though the 1 year total shareholder return is still down 18.32% and the 5 year total shareholder return of 54.06% reflects much stronger long term compounding.

Capture how Badger Meter’s mix of flat sales and stronger earnings compares with other quality water and infrastructure plays by scanning our hand picked 30 resilient stocks with low risk scores in a few minutes.

Badger Meter has just put nearly 20% back on in three months off a flat sales base and richer margins. Is that the warm up, or was that most of the rerating?

Most Popular Narrative: 3.5% Undervalued

Badger Meter is trading close to the narrative fair value of $156.67 compared with the last close at $151.24. The gap now comes down to how confidently that earnings path plays out under the assumed 8.85% discount rate.

The main factor that needs to go right is execution on the large cohort of awarded but not yet fully ramped AMI and sewer monitoring projects, including PRASA and the post UDlive sewer portfolio, so that the expected second half weighting in 2026 translates into sustained volume and software attachment over the next several years.

See why 13 investors see Badger Meter as 3% undervalued.

Result: Fair Value of $156.67 (UNDERVALUED)

Still, that fair value story can wobble if the 2.6 million to 3.6 million awarded AMI and sewer projects stall or if legal actions drag on costs and focus.

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

Another View: What Badger Meter’s P/E Is Telling You

There is a different read on Badger Meter when you look at simple pricing ratios instead of narrative fair value. The shares trade on a P/E of 34.6x, while the fair ratio is 24.6x and the US Electronic industry sits at 28.1x. That gap points to clear valuation risk if sentiment cools.

For investors comparing pricing signals alongside the narrative fair value, See what the numbers say about this price — find out in our valuation breakdown..

NYSE:BMI P/E Ratio as at Oct 2026
NYSE:BMI P/E Ratio as at Oct 2026

Next Steps

Mixed signals or growing optimism around Badger Meter? The only way to be comfortable is to pressure test the data yourself and move fast. Start by checking the 1 key reward.

Looking for more investment ideas beyond Badger Meter?

You do not need to stop with Badger Meter. Broaden your watchlist with a few targeted stock ideas that match different risk and income preferences.

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.

Companies discussed in this article include BMI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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