14.07 USD
-0.36 (-2.49%)
14.07 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ERII. ERII was compared to 132 industry peers in the Machinery industry. ERII gets an excellent profitability rating and is at the same time showing great financial health properties. ERII is growing strongly while it is still valued neutral. This is a good combination! These ratings could make ERII a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ERII was profitable.
ERII had a positive operating cash flow in the past year.
Each year in the past 5 years ERII has been profitable.
In the past 5 years ERII always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ERII (9.31%) is better than 78.03% of its industry peers.
The Return On Equity of ERII (10.79%) is better than 65.15% of its industry peers.
The Return On Invested Capital of ERII (8.89%) is better than 64.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERII is below the industry average of 10.27%.
The last Return On Invested Capital (8.89%) for ERII is above the 3 year average (8.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 10.79% | ||
| ROIC | 8.89% |
ROA(3y)9.69%
ROA(5y)9.73%
ROE(3y)11.24%
ROE(5y)11.42%
ROIC(3y)8.12%
ROIC(5y)8.81%
1.3 Margins
ERII has a better Profit Margin (14.44%) than 85.61% of its industry peers.
ERII's Profit Margin has improved in the last couple of years.
The Operating Margin of ERII (15.68%) is better than 73.48% of its industry peers.
In the last couple of years the Operating Margin of ERII has grown nicely.
ERII's Gross Margin of 66.64% is amongst the best of the industry. ERII outperforms 99.24% of its industry peers.
In the last couple of years the Gross Margin of ERII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.68% | ||
| PM (TTM) | 14.44% | ||
| GM | 66.64% |
OM growth 3Y4.79%
OM growth 5Y5.06%
PM growth 3Y5.01%
PM growth 5Y4.86%
GM growth 3Y-0.83%
GM growth 5Y-2.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERII is destroying value.
Compared to 1 year ago, ERII has less shares outstanding
ERII has less shares outstanding than it did 5 years ago.
There is no outstanding debt for ERII. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ERII has an Altman-Z score of 17.95. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 17.95, ERII belongs to the best of the industry, outperforming 98.48% of the companies in the same industry.
There is no outstanding debt for ERII. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.95 |
ROIC/WACC0.94
WACC9.47%
2.3 Liquidity
A Current Ratio of 7.33 indicates that ERII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.33, ERII belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
A Quick Ratio of 5.75 indicates that ERII has no problem at all paying its short term obligations.
The Quick ratio of ERII (5.75) is better than 94.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.75 |
3. Growth
3.1 Past
ERII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.29%, which is quite impressive.
The Earnings Per Share has been growing by 20.11% on average over the past years. This is a very strong growth
Looking at the last year, ERII shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
The Revenue has been growing by 10.77% on average over the past years. This is quite good.
EPS 1Y (TTM)35.29%
EPS 3Y21.64%
EPS 5Y20.11%
EPS Q2Q%-20%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-17.06%
3.2 Future
The Earnings Per Share is expected to grow by 40.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, ERII will show a quite strong growth in Revenue. The Revenue will grow by 13.66% on average per year.
EPS Next Y61.69%
EPS Next 2Y40.43%
EPS Next 3Y40.17%
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y6.37%
Revenue Next 3Y8.76%
Revenue Next 5Y13.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.59, the valuation of ERII can be described as expensive.
ERII's Price/Earnings ratio is in line with the industry average.
ERII's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
ERII is valuated correctly with a Price/Forward Earnings ratio of 15.86.
Based on the Price/Forward Earnings ratio, ERII is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, ERII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
ERII's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ERII is more expensive than 68.94% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ERII.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.5 | ||
| EV/EBITDA | 25.58 |
4.3 Compensation for Growth
ERII's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ERII has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ERII's earnings are expected to grow with 40.17% in the coming years.
PEG (NY)0.5
PEG (5Y)1.52
EPS Next 2Y40.43%
EPS Next 3Y40.17%
5. Dividend
5.1 Amount
No dividends for ERII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
14.07
-0.36 (-2.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.06%
Inst Owner Change-2.4%
Ins Owners2.82%
Ins Owner Change-1.26%
Market Cap745.29M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (32.2%)
Short Float %3.22%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)987.37%
Min EPS beat(2)13.86%
Max EPS beat(2)1960.88%
EPS beat(4)3
Avg EPS beat(4)375.91%
Min EPS beat(4)-488.23%
Max EPS beat(4)1960.88%
EPS beat(8)5
Avg EPS beat(8)205.62%
EPS beat(12)8
Avg EPS beat(12)145.07%
EPS beat(16)9
Avg EPS beat(16)113.59%
Revenue beat(2)1
Avg Revenue beat(2)1.71%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)8.15%
Revenue beat(4)1
Avg Revenue beat(4)-15.69%
Min Revenue beat(4)-63.91%
Max Revenue beat(4)8.15%
Revenue beat(8)2
Avg Revenue beat(8)-3.08%
Revenue beat(12)5
Avg Revenue beat(12)-1.85%
Revenue beat(16)7
Avg Revenue beat(16)-2.11%
PT rev (1m)10.55%
PT rev (3m)10.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.02%
EPS NY rev (1m)15.67%
EPS NY rev (3m)15.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 15.86 | ||
| P/S | 5.51 | ||
| P/FCF | 37.5 | ||
| P/OCF | 36.09 | ||
| P/B | 4.12 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 25.58 |
EPS(TTM)0.46
EY3.27%
EPS(NY)0.89
Fwd EY6.31%
FCF(TTM)0.38
FCFY2.67%
OCF(TTM)0.39
OCFY2.77%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.5
PEG (5Y)1.52
Graham Number5.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 10.79% | ||
| ROCE | 11.25% | ||
| ROIC | 8.89% | ||
| ROICexc | 14.19% | ||
| ROICexgc | 15.91% | ||
| OM | 15.68% | ||
| PM (TTM) | 14.44% | ||
| GM | 66.64% | ||
| FCFM | 14.7% |
ROA(3y)9.69%
ROA(5y)9.73%
ROE(3y)11.24%
ROE(5y)11.42%
ROIC(3y)8.12%
ROIC(5y)8.81%
ROICexc(3y)14.22%
ROICexc(5y)18.19%
ROICexgc(3y)15.9%
ROICexgc(5y)21.13%
ROCE(3y)10.28%
ROCE(5y)11.16%
ROICexgc growth 3Y-2%
ROICexgc growth 5Y0.91%
ROICexc growth 3Y0.06%
ROICexc growth 5Y2.77%
OM growth 3Y4.79%
OM growth 5Y5.06%
PM growth 3Y5.01%
PM growth 5Y4.86%
GM growth 3Y-0.83%
GM growth 5Y-2.69%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 18.07% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.05% | ||
| Profit Quality | 101.83% | ||
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.75 | ||
| Altman-Z | 17.95 |
F-Score8
WACC9.47%
ROIC/WACC0.94
Cap/Depr(3y)61.16%
Cap/Depr(5y)84.81%
Cap/Sales(3y)2.09%
Cap/Sales(5y)3.68%
Profit Quality(3y)75.85%
Profit Quality(5y)62.74%
High Growth Momentum
Growth
EPS 1Y (TTM)35.29%
EPS 3Y21.64%
EPS 5Y20.11%
EPS Q2Q%-20%
EPS Next Y61.69%
EPS Next 2Y40.43%
EPS Next 3Y40.17%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-17.06%
Revenue Next Year3.83%
Revenue Next 2Y6.37%
Revenue Next 3Y8.76%
Revenue Next 5Y13.66%
EBIT growth 1Y44.02%
EBIT growth 3Y17.08%
EBIT growth 5Y16.38%
EBIT Next Year156.46%
EBIT Next 3Y55.78%
EBIT Next 5YN/A
FCF growth 1Y22.52%
FCF growth 3Y41.07%
FCF growth 5YN/A
OCF growth 1Y10.8%
OCF growth 3Y14.91%
OCF growth 5Y31.24%
ENERGY RECOVERY INC / ERII FAQ
What is the ChartMill fundamental rating of ENERGY RECOVERY INC (ERII) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ERII.
What is the valuation status for ERII stock?
ChartMill assigns a valuation rating of 5 / 10 to ENERGY RECOVERY INC (ERII). This can be considered as Fairly Valued.
Can you provide the profitability details for ENERGY RECOVERY INC?
ENERGY RECOVERY INC (ERII) has a profitability rating of 7 / 10.
What is the expected EPS growth for ENERGY RECOVERY INC (ERII) stock?
The Earnings per Share (EPS) of ENERGY RECOVERY INC (ERII) is expected to grow by 61.69% in the next year.