Jon Quast

Today, this business is thriving more than ever.

It provides smart meters to track flow, water pressure, even water quality.

And in the background, it provides analytics software for its grid-based customers.

The tailwinds guys here are strong.

They're not making any more water.

There's over 8 billion thirsty people in the world.

We need to manage our water better.

That's what BadgerMeter can help grids do.

Data centers and nuclear power plants also need water.

Those are some trends that are pushing adoption here.

Listen, BadgerMeter, the reason I wanted to highlight it today was, it just got crushed after its earnings results earlier this week.

Basically, the company expects slower growth over the next five years compared to the previous five years.

That said, there will still be growth, and there are some big projects coming online, such as 1.6 million meters in Puerto Rico.

This gives management the confidence that it can continue to grow, albeit at a slightly slower rate.

Margins are hitting all-time high.

I think that's important.

The operating margin is around 20%.

The balance sheet is pristine.

It's paid a dividend for over 30 years.

This is the newest stock to my portfolio.