ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis
USA - NASDAQ:ERII - US29270J1007 - Common Stock
15.32 USD
+0.08 (+0.52%)
15.32 USD
0 (0%)
Overall ERII gets a fundamental rating of 7 out of 10. We evaluated ERII against 129 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 valued quite expensive, but it does show an excellent growth. With these ratings, ERII could be worth investigating further for growth and quality investing!.
1. Profitability
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.
1.2 Ratios
ERII has a better Return On Assets (11.37%) than 86.05% of its industry peers.
ERII has a better Return On Equity (13.03%) than 67.44% of its industry peers.
With a decent Return On Invested Capital value of 10.05%, ERII is doing good in the industry, outperforming 71.32% 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 in line with the industry average of 10.00%.
The 3 year average ROIC (8.12%) for ERII is below the current ROIC(10.05%), indicating increased profibility in the last year.
| 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
The Profit Margin of ERII (17.02%) is better than 93.80% of its industry peers.
ERII's Profit Margin has improved in the last couple of years.
The Operating Margin of ERII (17.35%) is better than 81.40% of its industry peers.
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 99.22% of the companies in the same industry.
ERII's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERII is creating some value.
Compared to 1 year ago, ERII has less shares outstanding
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 20.42 indicates that ERII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 20.42, ERII belongs to the top of the industry, outperforming 98.45% 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 | 20.42 |
ROIC/WACC1.01
WACC9.93%
2.3 Liquidity
ERII has a Current Ratio of 8.08. This indicates that ERII is financially healthy and has no problem in meeting its short term obligations.
ERII's Current ratio of 8.08 is amongst the best of the industry. ERII outperforms 96.12% of its industry peers.
A Quick Ratio of 6.34 indicates that ERII has no problem at all paying its short term obligations.
ERII's Quick ratio of 6.34 is amongst the best of the industry. ERII outperforms 96.12% of its industry peers.
| 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.
Measured over the past years, ERII shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.11% on average per year.
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
The Earnings Per Share is expected to grow by 24.43% on average over the next years. This is a very strong growth
ERII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.66% yearly.
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
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
A Price/Earnings ratio of 31.27 indicates a quite expensive valuation of ERII.
62.79% of the companies in the same industry are cheaper than ERII, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.32. ERII is around the same levels.
With a Price/Forward Earnings ratio of 18.85, 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 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
ERII's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ERII is more expensive than 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.39 | ||
| EV/EBITDA | 22.7 |
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.
The excellent profitability rating of ERII 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
No dividends for ERII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.32
+0.08 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-0.48%
Ins Owners2.81%
Ins Owner Change0.14%
Market Cap815.02M
Analysts82
Price Target16.83 (9.86%)
Short Float %2.21%
Short Ratio2.82
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)5.6%
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 | 31.27 | ||
| Fwd PE | 18.85 | ||
| P/S | 5.75 | ||
| P/FCF | 40.39 | ||
| P/OCF | 39.23 | ||
| P/B | 4.4 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 22.7 |
EPS(TTM)0.49
EY3.2%
EPS(NY)0.81
Fwd EY5.3%
FCF(TTM)0.38
FCFY2.48%
OCF(TTM)0.39
OCFY2.55%
SpS2.66
BVpS3.48
TBVpS3.24
PEG (NY)0.79
PEG (5Y)1.55
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%
ROICexcg growth 3Y-2%
ROICexcg 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 | 20.42 |
F-Score7
WACC9.93%
ROIC/WACC1.01
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 Year122.29%
EBIT Next 3Y51.89%
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%