ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis
USA - NASDAQ:ERII - US29270J1007 - Common Stock
16.78 USD
+0.37 (+2.25%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
ERII had a positive operating cash flow in the past year.
Each year in the past 5 years ERII has been profitable.
Each year in the past 5 years ERII had a positive operating cash flow.
1.2 Ratios
ERII has a Return On Assets of 11.37%. This is amongst the best in the industry. ERII outperforms 85.38% of its industry peers.
ERII has a better Return On Equity (13.03%) than 67.69% of its industry peers.
ERII's Return On Invested Capital of 10.05% is fine compared to the rest of the industry. ERII outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERII is below the industry average of 10.24%.
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
With an excellent Profit Margin value of 17.02%, ERII belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
ERII's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.35%, ERII is doing good in the industry, outperforming 79.23% of the companies in the same industry.
ERII's Operating Margin has improved in the last couple of years.
ERII's Gross Margin of 66.76% is amongst the best of the industry. ERII outperforms 99.23% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERII is still creating some 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.
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 21.80. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
ERII's Altman-Z score of 21.80 is amongst the best of the industry. ERII outperforms 99.23% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 21.8 |
ROIC/WACC1.05
WACC9.58%
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 95.38% of its industry peers.
A Quick Ratio of 6.34 indicates that ERII has no problem at all paying its short term obligations.
ERII has a Quick ratio of 6.34. This is amongst the best in the industry. ERII outperforms 95.38% 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.
The Earnings Per Share has been growing by 20.11% on average over the past years. This is a very strong growth
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
With a Price/Earnings ratio of 34.24, ERII can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ERII is valued a bit more expensive than 64.62% of the companies in the same industry.
ERII is valuated rather expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.65, which indicates a rather expensive current valuation of ERII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERII is on the same level as its industry peers.
ERII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.24 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERII is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.24 | ||
| EV/EBITDA | 24.7 |
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.
A more expensive valuation may be justified as ERII's earnings are expected to grow with 24.43% in the coming years.
PEG (NY)0.86
PEG (5Y)1.7
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 (11/5/2025, 10:03:55 AM)
16.78
+0.37 (+2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-2.45%
Ins Owners2.81%
Ins Owner Change0.14%
Market Cap892.70M
Revenue(TTM)141.78M
Net Income(TTM)24.13M
Analysts82
Price Target16.83 (0.3%)
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 | 34.24 | ||
| Fwd PE | 20.65 | ||
| P/S | 6.3 | ||
| P/FCF | 44.24 | ||
| P/OCF | 42.97 | ||
| P/B | 4.82 | ||
| P/tB | 5.18 | ||
| EV/EBITDA | 24.7 |
EPS(TTM)0.49
EY2.92%
EPS(NY)0.81
Fwd EY4.84%
FCF(TTM)0.38
FCFY2.26%
OCF(TTM)0.39
OCFY2.33%
SpS2.66
BVpS3.48
TBVpS3.24
PEG (NY)0.86
PEG (5Y)1.7
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 | 21.8 |
F-Score7
WACC9.58%
ROIC/WACC1.05
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.