ENERGY RECOVERY INC (ERII) Fundamental Analysis & Valuation

NASDAQ:ERII • US29270J1007

Current stock price

11.04 USD
-0.03 (-0.27%)
At close:
11.07 USD
+0.03 (+0.27%)
Pre-Market:

This ERII fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ERII Profitability Analysis

1.1 Basic Checks

  • In the past year ERII was profitable.
  • In the past year ERII had a positive cash flow from operations.
  • In the past 5 years ERII has always been profitable.
  • In the past 5 years ERII always reported a positive cash flow from operatings.
ERII Yearly Net Income VS EBIT VS OCF VS FCFERII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10M 20M 30M

1.2 Ratios

  • ERII's Return On Assets of 9.92% is amongst the best of the industry. ERII outperforms 83.21% of its industry peers.
  • ERII's Return On Equity of 11.14% is fine compared to the rest of the industry. ERII outperforms 64.89% of its industry peers.
  • ERII's Return On Invested Capital of 9.76% is fine compared to the rest of the industry. ERII outperforms 73.28% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ERII is in line with the industry average of 10.06%.
  • The 3 year average ROIC (8.54%) for ERII is below the current ROIC(9.76%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.92%
ROE 11.14%
ROIC 9.76%
ROA(3y)9.3%
ROA(5y)9.13%
ROE(3y)10.63%
ROE(5y)10.57%
ROIC(3y)8.54%
ROIC(5y)8.51%
ERII Yearly ROA, ROE, ROICERII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With an excellent Profit Margin value of 17.01%, ERII belongs to the best of the industry, outperforming 92.37% of the companies in the same industry.
  • ERII's Profit Margin has declined in the last couple of years.
  • ERII's Operating Margin of 17.93% is amongst the best of the industry. ERII outperforms 82.44% of its industry peers.
  • In the last couple of years the Operating Margin of ERII has declined.
  • ERII has a Gross Margin of 65.14%. This is amongst the best in the industry. ERII outperforms 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of ERII has declined.
Industry RankSector Rank
OM 17.93%
PM (TTM) 17.01%
GM 65.14%
OM growth 3Y-3.21%
OM growth 5Y-8.68%
PM growth 3Y-3.87%
PM growth 5Y-5.17%
GM growth 3Y-2.16%
GM growth 5Y-3.09%
ERII Yearly Profit, Operating, Gross MarginsERII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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9

2. ERII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERII is destroying value.
  • The number of shares outstanding for ERII has been reduced compared to 1 year ago.
  • 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.
ERII Yearly Shares OutstandingERII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
ERII Yearly Total Debt VS Total AssetsERII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M

2.2 Solvency

  • An Altman-Z score of 16.38 indicates that ERII is not in any danger for bankruptcy at the moment.
  • ERII has a better Altman-Z score (16.38) than 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 16.38
ROIC/WACC0.94
WACC10.39%
ERII Yearly LT Debt VS Equity VS FCFERII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M

2.3 Liquidity

  • A Current Ratio of 10.44 indicates that ERII has no problem at all paying its short term obligations.
  • ERII has a better Current ratio (10.44) than 96.18% of its industry peers.
  • A Quick Ratio of 9.04 indicates that ERII has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 9.04, ERII belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 10.44
Quick Ratio 9.04
ERII Yearly Current Assets VS Current LiabilitesERII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ERII Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.00% over the past year.
  • ERII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.55% yearly.
  • Looking at the last year, ERII shows a decrease in Revenue. The Revenue has decreased by -6.87% in the last year.
  • Measured over the past years, ERII shows a small growth in Revenue. The Revenue has been growing by 2.55% on average per year.
EPS 1Y (TTM)20%
EPS 3Y7.89%
EPS 5Y1.55%
EPS Q2Q%17.78%
Revenue 1Y (TTM)-6.87%
Revenue growth 3Y2.43%
Revenue growth 5Y2.55%
Sales Q2Q%-0.3%

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 21.94% 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 15.41% on average per year.
EPS Next Y9.18%
EPS Next 2Y28.19%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue Next Year-19.52%
Revenue Next 2Y-1.5%
Revenue Next 3Y4.67%
Revenue Next 5Y15.41%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ERII Yearly Revenue VS EstimatesERII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100M 200M 300M
ERII Yearly EPS VS EstimatesERII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4 0.6 0.8

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4

4. ERII Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.44, the valuation of ERII can be described as rather expensive.
  • Based on the Price/Earnings ratio, ERII is valued a bit cheaper than the industry average as 70.23% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ERII to the average of the S&P500 Index (26.51), we can say ERII is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 18.73, which indicates a rather expensive current valuation of ERII.
  • 66.41% 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 21.41. ERII is around the same levels.
Industry RankSector Rank
PE 20.44
Fwd PE 18.73
ERII Price Earnings VS Forward Price EarningsERII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • ERII's Enterprise Value to EBITDA is on the same level as the industry average.
  • ERII's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 33.44
EV/EBITDA 17.2
ERII Per share dataERII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 21.94% in the coming years.
PEG (NY)2.23
PEG (5Y)13.18
EPS Next 2Y28.19%
EPS Next 3Y21.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ERII Dividend Analysis

5.1 Amount

  • No dividends for ERII!.
Industry RankSector Rank
Dividend Yield 0%

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ERII Fundamentals: All Metrics, Ratios and Statistics

ENERGY RECOVERY INC

NASDAQ:ERII (5/1/2026, 8:24:01 PM)

Premarket: 11.07 +0.03 (+0.27%)

11.04

-0.03 (-0.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength57.76
Industry Growth52.8
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners92.97%
Inst Owner Change-0.64%
Ins Owners2.4%
Ins Owner Change-3.06%
Market Cap583.24M
Revenue(TTM)134.99M
Net Income(TTM)22.96M
Analysts83.33
Price Target14.45 (30.89%)
Short Float %4%
Short Ratio2.29
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-4.3%
Min EPS beat(2)-22.45%
Max EPS beat(2)13.86%
EPS beat(4)2
Avg EPS beat(4)366.02%
Min EPS beat(4)-488.23%
Max EPS beat(4)1960.88%
EPS beat(8)5
Avg EPS beat(8)204.28%
EPS beat(12)7
Avg EPS beat(12)138.75%
EPS beat(16)9
Avg EPS beat(16)113.57%
Revenue beat(2)0
Avg Revenue beat(2)-12.64%
Min Revenue beat(2)-20.54%
Max Revenue beat(2)-4.74%
Revenue beat(4)1
Avg Revenue beat(4)-20.26%
Min Revenue beat(4)-63.91%
Max Revenue beat(4)8.15%
Revenue beat(8)2
Avg Revenue beat(8)-4.17%
Revenue beat(12)4
Avg Revenue beat(12)-3.76%
Revenue beat(16)6
Avg Revenue beat(16)-3.65%
PT rev (1m)0%
PT rev (3m)-22.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.33%
EPS NY rev (1m)-25.9%
EPS NY rev (3m)-33.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-26.07%
Valuation
Industry RankSector Rank
PE 20.44
Fwd PE 18.73
P/S 4.32
P/FCF 33.44
P/OCF 31.07
P/B 2.83
P/tB 3.02
EV/EBITDA 17.2
EPS(TTM)0.54
EY4.89%
EPS(NY)0.59
Fwd EY5.34%
FCF(TTM)0.33
FCFY2.99%
OCF(TTM)0.36
OCFY3.22%
SpS2.56
BVpS3.9
TBVpS3.66
PEG (NY)2.23
PEG (5Y)13.18
Graham Number6.88627 (-37.62%)
Profitability
Industry RankSector Rank
ROA 9.92%
ROE 11.14%
ROCE 11.3%
ROIC 9.76%
ROICexc 15.05%
ROICexgc 16.58%
OM 17.93%
PM (TTM) 17.01%
GM 65.14%
FCFM 12.92%
ROA(3y)9.3%
ROA(5y)9.13%
ROE(3y)10.63%
ROE(5y)10.57%
ROIC(3y)8.54%
ROIC(5y)8.51%
ROICexc(3y)14%
ROICexc(5y)15.05%
ROICexgc(3y)15.48%
ROICexgc(5y)16.92%
ROCE(3y)9.88%
ROCE(5y)9.86%
ROICexgc growth 3Y-9.43%
ROICexgc growth 5Y-18.99%
ROICexc growth 3Y-8.57%
ROICexc growth 5Y-17.46%
OM growth 3Y-3.21%
OM growth 5Y-8.68%
PM growth 3Y-3.87%
PM growth 5Y-5.17%
GM growth 3Y-2.16%
GM growth 5Y-3.09%
F-Score6
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 35.37%
Cap/Sales 0.99%
Interest Coverage 250
Cash Conversion 67.13%
Profit Quality 75.95%
Current Ratio 10.44
Quick Ratio 9.04
Altman-Z 16.38
F-Score6
WACC10.39%
ROIC/WACC0.94
Cap/Depr(3y)43.34%
Cap/Depr(5y)66.27%
Cap/Sales(3y)1.29%
Cap/Sales(5y)2.74%
Profit Quality(3y)89.52%
Profit Quality(5y)70.3%
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3Y7.89%
EPS 5Y1.55%
EPS Q2Q%17.78%
EPS Next Y9.18%
EPS Next 2Y28.19%
EPS Next 3Y21.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.87%
Revenue growth 3Y2.43%
Revenue growth 5Y2.55%
Sales Q2Q%-0.3%
Revenue Next Year-19.52%
Revenue Next 2Y-1.5%
Revenue Next 3Y4.67%
Revenue Next 5Y15.41%
EBIT growth 1Y9.02%
EBIT growth 3Y-0.85%
EBIT growth 5Y-6.35%
EBIT Next Year5.53%
EBIT Next 3Y12.09%
EBIT Next 5YN/A
FCF growth 1Y-9.28%
FCF growth 3Y27.58%
FCF growth 5Y11.59%
OCF growth 1Y-8.54%
OCF growth 3Y14.11%
OCF growth 5Y2.16%

ENERGY RECOVERY INC / ERII Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ENERGY RECOVERY INC (ERII) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERII.


What is the valuation status of ENERGY RECOVERY INC (ERII) stock?

ChartMill assigns a valuation rating of 4 / 10 to ENERGY RECOVERY INC (ERII). This can be considered as Fairly Valued.


What is the profitability of ERII stock?

ENERGY RECOVERY INC (ERII) has a profitability rating of 7 / 10.


What are the PE and PB ratios of ENERGY RECOVERY INC (ERII) stock?

The Price/Earnings (PE) ratio for ENERGY RECOVERY INC (ERII) is 20.44 and the Price/Book (PB) ratio is 2.83.