On the four Ms, Jbt Marel Corp earns 50 for management and 57 for moat. The management score rests on a return on invested capital of 2.1% and a gross margin of 35.1% — figures that describe returns closer to the cost of the capital behind them. Debt sits at 0.42x equity.
Three independent anchors set the price worth paying. Growth is modelled at 15.0% a year, below the 17.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 30.0x. That produces an intrinsic value of $110.70, a 10-CAP price of $66.06 and a payback time price of $104.28, with the value zone set at the highest of the three, $104.28. Today's price of $106.86 sits 2% above it.
The price is above the value zone and the business scores 57 for moat and 50 for management. Neither test argues for paying up here.
| Price | $106.86 |
| Market cap | $5.6B |
| P/E ratio | 29.0x |
| Return on invested capital | 2.1% |
| Gross margin | 35.1% |
| Debt to equity | 0.42x |
| Free cash flow yield | 3.0% |
| Growth rate used | 15.0% |
| Growth rate measured | 17.0% |
| Exit multiple assumed | 30.0x |
| Company | Moat | Buy price |
| Badger Meter Inc (BMI) | 100 | $84.03 |
| A. O. Smith (AOS) | 62 | $49.09 |
| Pentair (PNR) | 69 | $46.42 |
| Ats Corp (ATS) | 65 | $46.15 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Jbt Marel Corp rather than accepting ours.