The Short Answer
Badger Meter (BMI) is qualitatively halal, with an incomplete current quantitative screen. Badger Meter is a leading manufacturer of flow-measurement, quality, and control solutions, with a focus on smart-water technology.
Water-meter and flow-instrumentation manufacturing, plus smart-water-monitoring software, are generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 0.00%, liquidity/assets of 21.16%, and receivables-plus-cash/assets of 32.52%; the known asset-based ratios pass, but no universal prohibited-revenue numerator is disclosed.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
0 / 970.808
205.453 / 970.808
315.743 / 970.808
1.138 / 202.277
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 21.16%, receivables-plus-cash/assets is 32.52% and disclosed net interest income is 0.56%; known financial ratios pass, but the activity numerator is incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; the business-activity numerator remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios pass the examined Malaysia limits; this is not an official classification and prohibited activity is not separately quantified.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the total-assets ratios are shown separately.
Business-activity disclosure
Badger Meter manufactures water meters, flow-measurement instruments and smart-water monitoring software. The core activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for all industrial applications and customers.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; the screen does not invent one.
Purification
Badger Meter reports $1.138 million of net interest income, but no scholar-specific purification percentage is asserted and the activity numerator remains incomplete.
Inputs, assumptions and primary sources
- Amounts are USD millions from Badger Meter's March 31, 2026 Form 10-Q.
- No interest-bearing debt is reported; the $150.0 million multi-currency credit facility supports commercial paper but had no reported drawn balance. Operating leases are excluded.
- Cash and cash equivalents are $205.453 million and no separate interest-bearing security balance is identified.
- Accounts receivable, net is $110.290 million and first-quarter net sales are $202.277 million.
- The filing reports $1.138 million of net interest income, or 0.56% of revenue; this is a disclosed net line, not a gross-income or purification prescription.
- Water metering, flow instrumentation and utility-resource software are generally permissible, while the filing does not provide a universal prohibited-revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Badger Meter's Business Activity
Badger Meter designs and manufactures:
- Water meters: Mechanical and ultrasonic water-meters for municipal-water utilities
- Smart-water technology: Smart endpoints, communications technology, and AMI (advanced-metering-infrastructure) systems
- Software & analytics: The BEACON software platform and remote-monitoring analytics
- Flow instrumentation: Flow-measurement products for industrial applications
These are general-purpose water-technology and measurement-equipment businesses, with a growing recurring software-and-services base. This is permissible at the activity level.
Concerns to Be Aware Of
1. End-Market Look-Through
Water-metering products are sold primarily to municipal-water utilities and industrial customers. Under standard methodology, the relevant classification is general-purpose water-technology and measurement-equipment manufacturing rather than the look-through end-customer mix.
2. Cyclicality & Valuation
Earnings can be sensitive to municipal-budget cycles and electronic-component availability, and the stock frequently trades at a premium valuation reflecting its quality and water-technology growth profile. These are business-cycle and valuation considerations rather than Sharia screen concerns.
3. Minor Interest Income
Badger Meter has no reported drawn interest-bearing debt at the filing date. The filing reports $1.138 million of net interest income (0.56% of revenue); this is a disclosed net line, not a fixed purification prescription.
Filing-Based Ratios (March 31, 2026)
Based on Badger Meter's latest Form 10-Q and consolidated financial statements:
- Debt / assets: 0.00%, below the examined 33.333% limit.
- Cash + interest-bearing securities / assets: 21.16%, below the examined liquidity limit.
- Receivables + cash / assets: 32.52%, below the examined asset-based limits.
- Disclosed net interest income / revenue: 0.56%.
- Prohibited-activity revenue: Not separately disclosed; no universal percentage is invented.
Methodology Interpretation
The known asset-based ratios pass the examined FTSE Yasaar, MSCI and Malaysia-style tests, but the business-activity numerator remains incomplete. This is a current ZakatInvest calculation, not an index-membership claim or a universal scholarly ruling.
Bottom Line
Badger Meter (BMI) is qualitatively halal with known financial ratios passing but an incomplete activity numerator. The core business — water meters and smart-water technology — is generally permissible and aligned with essential water-infrastructure investment; revisit the record when a new filing changes the inputs.
For Muslim investors seeking water-infrastructure exposure, BMI sits alongside other halal-screened names like Xylem (XYL) and Watts Water (WTS).
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