13.98 USD
-0.32 (-2.24%)
13.98 USD
0 (0%)
Taking everything into account, ERII scores 7 out of 10 in our fundamental rating. ERII was compared to 132 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
- ERII had positive earnings in each of the past 5 years.
- Each year in the past 5 years ERII had a positive operating cash flow.
1.2 Ratios
- ERII's Return On Assets of 9.31% is fine compared to the rest of the industry. ERII outperforms 78.03% of its industry peers.
- ERII has a Return On Equity of 10.79%. This is in the better half of the industry: ERII outperforms 65.91% of its industry peers.
- With a decent Return On Invested Capital value of 8.89%, ERII is doing good in the industry, outperforming 64.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ERII is below the industry average of 10.24%.
- 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
- ERII has a better Profit Margin (14.44%) than 85.61% of its industry peers.
- ERII's Profit Margin has improved in the last couple of years.
- ERII has a better Operating Margin (15.68%) than 72.73% of its industry peers.
- ERII's Operating Margin has improved in the last couple of years.
- ERII's Gross Margin of 66.64% is amongst the best of the industry. ERII outperforms 99.24% 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
- 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.
- Compared to 5 years ago, ERII has less shares outstanding
- 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
- ERII has an Altman-Z score of 18.20. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.20, ERII belongs to the best of the industry, outperforming 97.73% 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 | 18.2 |
ROIC/WACC0.91
WACC9.77%
2.3 Liquidity
- A Current Ratio of 7.33 indicates that ERII has no problem at all paying its short term obligations.
- ERII's Current ratio of 7.33 is amongst the best of the industry. ERII outperforms 94.70% of its industry peers.
- A Quick Ratio of 5.75 indicates that ERII has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 5.75, ERII belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.75 |
3. Growth
3.1 Past
- ERII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.29%, which is quite impressive.
- ERII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.11% yearly.
- 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
- ERII is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.17% yearly.
- The Revenue is expected to grow by 13.66% on average over the next years. This is quite good.
EPS Next Y61.69%
EPS Next 2Y40.43%
EPS Next 3Y40.17%
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y6.37%
Revenue Next 3Y8.76%
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 30.39 indicates a quite expensive valuation of ERII.
- The rest of the industry has a similar Price/Earnings ratio as ERII.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, ERII is valued at the same level.
- With a Price/Forward Earnings ratio of 15.75, ERII is valued correctly.
- ERII's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERII is cheaper than 81.06% of the companies in the same industry.
- ERII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than the industry average as 68.94% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERII is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.26 | ||
| EV/EBITDA | 26.06 |
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.
- ERII has a very decent profitability rating, which 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)0.49
PEG (5Y)1.51
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% |
13.98
-0.32 (-2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners91.04%
Inst Owner Change0.09%
Ins Owners2.77%
Ins Owner Change-1.26%
Market Cap740.52M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (33.05%)
Short Float %2.8%
Short Ratio2.76
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)-0.49%
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)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 15.75 | ||
| P/S | 5.48 | ||
| P/FCF | 37.26 | ||
| P/OCF | 35.86 | ||
| P/B | 4.1 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 26.06 |
EPS(TTM)0.46
EY3.29%
EPS(NY)0.89
Fwd EY6.35%
FCF(TTM)0.38
FCFY2.68%
OCF(TTM)0.39
OCFY2.79%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.49
PEG (5Y)1.51
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 | 18.2 |
F-Score8
WACC9.77%
ROIC/WACC0.91
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 Year3.83%
Revenue Next 2Y6.37%
Revenue Next 3Y8.76%
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 7 / 10.
Can you provide the PE and PB ratios for ERII stock?
The Price/Earnings (PE) ratio for ENERGY RECOVERY INC (ERII) is 30.39 and the Price/Book (PB) ratio is 4.1.
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.