14.38 USD
+0.13 (+0.91%)
14.38 USD
0 (0%)
Overall ERII gets a fundamental rating of 7 out of 10. We evaluated ERII against 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making ERII a very profitable company, without any liquidiy or solvency issues. ERII is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, ERII could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
ERII had positive earnings in the past year.
ERII had a positive operating cash flow in the past year.
In the past 5 years ERII has always been profitable.
ERII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ERII (9.31%) is better than 79.23% of its industry peers.
ERII has a better Return On Equity (10.79%) than 64.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.89%, ERII is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
ERII had an Average Return On Invested Capital over the past 3 years of 8.12%. This is below the industry average of 10.34%.
The 3 year average ROIC (8.12%) for ERII is below the current ROIC(8.89%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 14.44%, ERII belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Profit Margin of ERII has grown nicely.
ERII has a Operating Margin of 15.68%. This is in the better half of the industry: ERII outperforms 73.08% of its industry peers.
ERII's Operating Margin has improved in the last couple of years.
ERII has a better Gross Margin (66.64%) than 99.23% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERII is destroying value.
ERII has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERII has less shares outstanding
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
An Altman-Z score of 18.36 indicates that ERII is not in any danger for bankruptcy at the moment.
The Altman-Z score of ERII (18.36) is better than 97.69% of its industry peers.
ERII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.36 |
ROIC/WACC0.95
WACC9.33%
2.3 Liquidity
A Current Ratio of 7.33 indicates that ERII has no problem at all paying its short term obligations.
ERII has a better Current ratio (7.33) than 95.38% of its industry peers.
ERII has a Quick Ratio of 5.75. This indicates that ERII is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.75, ERII belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.29% over the past year.
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
Based on estimates for the next years, ERII will show a very strong growth in Earnings Per Share. The EPS will grow by 24.43% on average per year.
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 Y39.78%
EPS Next 2Y34.38%
EPS Next 3Y24.43%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y8.46%
Revenue Next 3Y12.22%
Revenue Next 5Y13.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ERII is valuated quite expensively with a Price/Earnings ratio of 31.26.
61.54% of the companies in the same industry are cheaper than ERII, based on the Price/Earnings ratio.
ERII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.70, which indicates a rather expensive current valuation of ERII.
63.85% of the companies in the same industry are more expensive than ERII, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.12. ERII is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
ERII's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.49 | ||
| EV/EBITDA | 26.35 |
4.3 Compensation for Growth
The 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 24.43% in the coming years.
PEG (NY)0.79
PEG (5Y)1.55
EPS Next 2Y34.38%
EPS Next 3Y24.43%
5. Dividend
5.1 Amount
ERII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.38
+0.13 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-3.36%
Ins Owners2.81%
Ins Owner Change0.02%
Market Cap765.02M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts82
Price Target18.6 (29.35%)
Short Float %2.94%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)8.02%
EPS NQ rev (3m)8.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 17.7 | ||
| P/S | 5.66 | ||
| P/FCF | 38.49 | ||
| P/OCF | 37.05 | ||
| P/B | 4.23 | ||
| P/tB | 4.55 | ||
| EV/EBITDA | 26.35 |
EPS(TTM)0.46
EY3.2%
EPS(NY)0.81
Fwd EY5.65%
FCF(TTM)0.37
FCFY2.6%
OCF(TTM)0.39
OCFY2.7%
SpS2.54
BVpS3.4
TBVpS3.16
PEG (NY)0.79
PEG (5Y)1.55
Graham Number5.93
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 | 18.36 |
F-Score8
WACC9.33%
ROIC/WACC0.95
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 Y39.78%
EPS Next 2Y34.38%
EPS Next 3Y24.43%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-17.06%
Revenue Next Year4.05%
Revenue Next 2Y8.46%
Revenue Next 3Y12.22%
Revenue Next 5Y13.66%
EBIT growth 1Y44.02%
EBIT growth 3Y17.08%
EBIT growth 5Y16.38%
EBIT Next Year133.01%
EBIT Next 3Y50.38%
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 4 / 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 39.78% in the next year.