ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis
NASDAQ:ERII • US29270J1007
15.88 USD
+0.13 (+0.83%)
Last: Feb 19, 2026, 01:28 PM
Taking everything into account, ERII scores 7 out of 10 in our fundamental rating. ERII was compared to 131 industry peers in the Machinery industry. ERII scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- 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.
- Each year in the past 5 years ERII had a positive operating cash flow.
1.2 Ratios
- ERII has a better Return On Assets (9.31%) than 80.15% of its industry peers.
- With a decent Return On Equity value of 10.79%, ERII is doing good in the industry, outperforming 65.65% of the companies in the same industry.
- ERII has a better Return On Invested Capital (8.89%) than 65.65% of its industry peers.
- ERII had an Average Return On Invested Capital over the past 3 years of 8.12%. This is below the industry average of 10.17%.
- 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
- The Profit Margin of ERII (14.44%) is better than 87.02% of its industry peers.
- 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 71.76% of its industry peers.
- In the last couple of years the Operating Margin of ERII has grown nicely.
- ERII has a better Gross Margin (66.64%) than 100.00% of its industry peers.
- ERII's Gross Margin has declined in the last couple of years.
| 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.
- Compared to 1 year ago, ERII has less shares outstanding
- ERII has less shares outstanding than it did 5 years ago.
- ERII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 19.80 indicates that ERII is not in any danger for bankruptcy at the moment.
- ERII's Altman-Z score of 19.80 is amongst the best of the industry. ERII outperforms 98.47% of its industry peers.
- 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 | 19.8 |
ROIC/WACC0.97
WACC9.12%
2.3 Liquidity
- ERII has a Current Ratio of 7.33. This indicates that ERII is financially healthy and has no problem in meeting its short term obligations.
- ERII has a Current ratio of 7.33. This is amongst the best in the industry. ERII outperforms 94.66% of its industry peers.
- A Quick Ratio of 5.75 indicates that ERII has no problem at all paying its short term obligations.
- ERII has a Quick ratio of 5.75. This is amongst the best in the industry. ERII outperforms 94.66% of its industry peers.
| 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
- ERII shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
- ERII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.77% yearly.
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 40.17% 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 Y61.69%
EPS Next 2Y40.43%
EPS Next 3Y40.17%
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y6.54%
Revenue Next 3Y9.28%
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 34.52, the valuation of ERII can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as ERII.
- The average S&P500 Price/Earnings ratio is at 27.27. ERII is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 17.89, which indicates a rather expensive current valuation of ERII.
- ERII's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERII is cheaper than 80.15% of the companies in the same industry.
- ERII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 17.89 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERII indicates a slightly more expensive valuation: ERII is more expensive than 68.70% of the companies listed in the same industry.
- ERII's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.32 | ||
| EV/EBITDA | 29.07 |
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.
- The excellent profitability rating of ERII may justify a higher PE ratio.
- ERII's earnings are expected to grow with 40.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)1.72
EPS Next 2Y40.43%
EPS Next 3Y40.17%
5. Dividend
5.1 Amount
- ERII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:ERII (2/19/2026, 1:28:06 PM)
15.88
+0.13 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners91.04%
Inst Owner Change-1.4%
Ins Owners2.77%
Ins Owner Change-2.63%
Market Cap841.16M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (17.13%)
Short Float %3.02%
Short Ratio4.29
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)0%
PT rev (3m)10.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.49%
EPS NY rev (1m)0%
EPS NY rev (3m)15.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 17.89 | ||
| P/S | 6.22 | ||
| P/FCF | 42.32 | ||
| P/OCF | 40.74 | ||
| P/B | 4.65 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 29.07 |
EPS(TTM)0.46
EY2.9%
EPS(NY)0.89
Fwd EY5.59%
FCF(TTM)0.38
FCFY2.36%
OCF(TTM)0.39
OCFY2.45%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.56
PEG (5Y)1.72
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 | 19.8 |
F-Score8
WACC9.12%
ROIC/WACC0.97
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 Year3.94%
Revenue Next 2Y6.54%
Revenue Next 3Y9.28%
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.
Can you provide the valuation status for ENERGY RECOVERY INC?
ChartMill assigns a valuation rating of 5 / 10 to ENERGY RECOVERY INC (ERII). This can be considered as Fairly Valued.
How profitable is ENERGY RECOVERY INC (ERII) stock?
ENERGY RECOVERY INC (ERII) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ERII stock?
The Price/Earnings (PE) ratio for ENERGY RECOVERY INC (ERII) is 34.52 and the Price/Book (PB) ratio is 4.65.
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.