Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Badger Meter (NYSE: BMI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 25.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, BADGER METER INC's return on equity exceeds that of both the industry average and the S&P 500.
- 39.40% is the gross profit margin for BADGER METER INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.20% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 28.7% when compared to the same quarter one year prior, rising from $6.88 million to $8.86 million.
- BADGER METER INC has improved earnings per share by 34.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BADGER METER INC reported lower earnings of $1.28 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.28).
-- Written by a member of TheStreet Ratings Staff