The formula measures a size ratio; it does not measure body-fat percentage or metabolic health.
Muscular people can cross a standard threshold without carrying the risk profile that threshold predicts on average.
Use BMI as one screening signal and discuss individual risk with a qualified clinician rather than self-diagnosing from it.
The full explanation
BMI was designed to describe populations, not people, by an astronomer with no medical interest in the number. It remains useful for what it was built for and misleading for what it is now used for. The same caution applies to any calculated estimate of how much energy a body needs. Read the complete guide for the reasoning, examples and definitions behind this answer.