ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis
USA - NASDAQ:ERII - US29270J1007 - Common Stock
17.17 USD
-0.23 (-1.32%)
17.17 USD
0 (0%)
Taking everything into account, ERII scores 7 out of 10 in our fundamental rating. ERII was compared to 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make ERII suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
ERII had positive earnings in the past year.
In the past year ERII had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.37%, ERII belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
ERII has a Return On Equity of 13.03%. This is in the better half of the industry: ERII outperforms 67.69% of its industry peers.
With a decent Return On Invested Capital value of 10.05%, ERII is doing good in the industry, outperforming 70.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERII is in line with the industry average of 10.00%.
The last Return On Invested Capital (10.05%) for ERII is above the 3 year average (8.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 13.03% | ||
| ROIC | 10.05% |
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
Looking at the Profit Margin, with a value of 17.02%, ERII belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
ERII's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.35%, ERII belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
In the last couple of years the Operating Margin of ERII has grown nicely.
Looking at the Gross Margin, with a value of 66.76%, ERII belongs to the top of the industry, outperforming 99.23% of the companies in the same industry.
In the last couple of years the Gross Margin of ERII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.35% | ||
| PM (TTM) | 17.02% | ||
| GM | 66.76% |
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 just above the Cost of Capital (WACC), so ERII is still creating some value.
Compared to 1 year ago, ERII has less shares outstanding
The number of shares outstanding for ERII has been reduced compared to 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
An Altman-Z score of 22.97 indicates that ERII is not in any danger for bankruptcy at the moment.
ERII has a better Altman-Z score (22.97) than 99.23% 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 | 22.97 |
ROIC/WACC1.06
WACC9.45%
2.3 Liquidity
A Current Ratio of 8.08 indicates that ERII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.08, ERII belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
A Quick Ratio of 6.34 indicates that ERII has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.34, ERII belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.08 | ||
| Quick Ratio | 6.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.11% over the past year.
ERII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.11% yearly.
Looking at the last year, ERII shows a small growth in Revenue. The Revenue has grown by 6.19% 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)36.11%
EPS 3Y21.64%
EPS 5Y20.11%
EPS Q2Q%800%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-27.3%
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.
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
ERII is valuated quite expensively with a Price/Earnings ratio of 35.04.
Based on the Price/Earnings ratio, ERII is valued a bit more expensive than 64.62% of the companies in the same industry.
ERII's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.76.
With a Price/Forward Earnings ratio of 21.13, ERII is valued on the expensive side.
ERII's Price/Forward Earnings ratio is in line with the industry average.
ERII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 21.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ERII is valued a bit more expensive than the industry average as 63.85% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.27 | ||
| EV/EBITDA | 26.38 |
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 24.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)1.74
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 |
17.17
-0.23 (-1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-0.09%
Ins Owners2.81%
Ins Owner Change0.14%
Market Cap913.44M
Revenue(TTM)141.78M
Net Income(TTM)24.13M
Analysts82
Price Target16.83 (-1.98%)
Short Float %2.64%
Short Ratio3.24
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)1
Avg EPS beat(2)736.33%
Min EPS beat(2)-488.23%
Max EPS beat(2)1960.88%
EPS beat(4)3
Avg EPS beat(4)388.29%
Min EPS beat(4)-488.23%
Max EPS beat(4)1960.88%
EPS beat(8)5
Avg EPS beat(8)231.07%
EPS beat(12)7
Avg EPS beat(12)142.76%
EPS beat(16)9
Avg EPS beat(16)143.49%
Revenue beat(2)1
Avg Revenue beat(2)-27.88%
Min Revenue beat(2)-63.91%
Max Revenue beat(2)8.15%
Revenue beat(4)1
Avg Revenue beat(4)-15.32%
Min Revenue beat(4)-63.91%
Max Revenue beat(4)8.15%
Revenue beat(8)3
Avg Revenue beat(8)-0.48%
Revenue beat(12)5
Avg Revenue beat(12)-2.57%
Revenue beat(16)7
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)13.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.55%
EPS NY rev (1m)0%
EPS NY rev (3m)14.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-23.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 21.13 | ||
| P/S | 6.44 | ||
| P/FCF | 45.27 | ||
| P/OCF | 43.97 | ||
| P/B | 4.93 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 26.38 |
EPS(TTM)0.49
EY2.85%
EPS(NY)0.81
Fwd EY4.73%
FCF(TTM)0.38
FCFY2.21%
OCF(TTM)0.39
OCFY2.27%
SpS2.66
BVpS3.48
TBVpS3.24
PEG (NY)0.88
PEG (5Y)1.74
Graham Number6.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 13.03% | ||
| ROCE | 12.72% | ||
| ROIC | 10.05% | ||
| ROICexc | 17.06% | ||
| ROICexgc | 19.22% | ||
| OM | 17.35% | ||
| PM (TTM) | 17.02% | ||
| GM | 66.76% | ||
| FCFM | 14.23% |
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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 9.05% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.55% | ||
| Profit Quality | 83.63% | ||
| Current Ratio | 8.08 | ||
| Quick Ratio | 6.34 | ||
| Altman-Z | 22.97 |
F-Score7
WACC9.45%
ROIC/WACC1.06
Cap/Depr(3y)44.7%
Cap/Depr(5y)74.94%
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)36.11%
EPS 3Y21.64%
EPS 5Y20.11%
EPS Q2Q%800%
EPS Next Y39.78%
EPS Next 2Y34.38%
EPS Next 3Y24.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.19%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-27.3%
Revenue Next Year4.05%
Revenue Next 2Y8.46%
Revenue Next 3Y12.22%
Revenue Next 5Y13.66%
EBIT growth 1Y46.43%
EBIT growth 3Y17.08%
EBIT growth 5Y16.38%
EBIT Next Year133.01%
EBIT Next 3Y50.38%
EBIT Next 5YN/A
FCF growth 1Y183.7%
FCF growth 3Y41.07%
FCF growth 5YN/A
OCF growth 1Y114.74%
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 3 / 10 to ENERGY RECOVERY INC (ERII). This can be considered as Overvalued.
Can you provide the profitability details for ENERGY RECOVERY INC?
ENERGY RECOVERY INC (ERII) has a profitability rating of 8 / 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.