14.66 USD
-0.02 (-0.14%)
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. ERII has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ERII is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ERII could be worth investigating further 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.
Each year in the past 5 years ERII has been profitable.
ERII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERII has a Return On Assets of 9.31%. This is in the better half of the industry: ERII outperforms 79.23% of its industry peers.
Looking at the Return On Equity, with a value of 10.79%, ERII is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
ERII's Return On Invested Capital of 8.89% is fine compared to the rest of the industry. ERII outperforms 63.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERII is below the industry average of 10.39%.
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
With an excellent Profit Margin value of 14.44%, ERII belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Profit Margin of ERII has grown nicely.
ERII has a better Operating Margin (15.68%) than 73.08% of its industry peers.
In the last couple of years the Operating Margin of ERII has grown nicely.
ERII has a Gross Margin of 66.64%. This is amongst the best in the industry. ERII outperforms 99.23% of its industry peers.
In the last couple of years the Gross Margin of ERII has declined.
| 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.
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
ERII has an Altman-Z score of 18.62. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ERII (18.62) is better 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 | 18.62 |
ROIC/WACC0.95
WACC9.4%
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 94.62% of its industry peers.
ERII has a Quick Ratio of 5.75. This indicates that ERII is financially healthy and has no problem in meeting its short term obligations.
ERII's Quick ratio of 5.75 is amongst the best of the industry. ERII outperforms 94.62% of its industry peers.
| 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%.
Measured over the past years, ERII shows a quite strong growth in Revenue. The Revenue has been growing by 10.77% on average per year.
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 24.43% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ERII is valuated quite expensively with a Price/Earnings ratio of 31.87.
Based on the Price/Earnings ratio, ERII is valued a bit more expensive than 62.31% of the companies in the same industry.
ERII is valuated rather expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.04, the valuation of ERII can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ERII is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
ERII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 18.04 |
4.2 Price Multiples
ERII's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ERII is more expensive than 69.23% of the companies 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 | 39.07 | ||
| EV/EBITDA | 26.85 |
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.
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 24.43% in the coming years.
PEG (NY)0.8
PEG (5Y)1.58
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 |
NASDAQ:ERII (12/5/2025, 3:50:00 PM)
14.66
-0.02 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-3.36%
Ins Owners2.81%
Ins Owner Change0.02%
Market Cap776.54M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts82
Price Target18.6 (26.88%)
Short Float %2.42%
Short Ratio2.42
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)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)10.55%
PT rev (3m)10.55%
EPS NQ rev (1m)8.02%
EPS NQ rev (3m)8.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 18.04 | ||
| P/S | 5.74 | ||
| P/FCF | 39.07 | ||
| P/OCF | 37.61 | ||
| P/B | 4.29 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 26.85 |
EPS(TTM)0.46
EY3.14%
EPS(NY)0.81
Fwd EY5.54%
FCF(TTM)0.38
FCFY2.56%
OCF(TTM)0.39
OCFY2.66%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.8
PEG (5Y)1.58
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 | 18.62 |
F-Score8
WACC9.4%
ROIC/WACC0.95
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 Y39.78%
EPS Next 2Y34.38%
EPS Next 3Y24.43%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y11.74%
Revenue growth 5Y10.77%
Sales Q2Q%-17.06%
Revenue Next Year4.05%
Revenue Next 2Y8.46%
Revenue Next 3Y12.22%
Revenue Next 5Y13.66%
EBIT growth 1Y44.02%
EBIT growth 3Y17.08%
EBIT growth 5Y16.38%
EBIT Next Year133.01%
EBIT Next 3Y50.38%
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.
What is the valuation status for ERII stock?
ChartMill assigns a valuation rating of 4 / 10 to ENERGY RECOVERY INC (ERII). This can be considered as Fairly Valued.
Can you provide the profitability details for ENERGY RECOVERY INC?
ENERGY RECOVERY INC (ERII) has a profitability rating of 7 / 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.