ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis

NASDAQ:ERII • US29270J1007

10.22 USD
-0.21 (-2.01%)
Last: Mar 2, 2026, 03:40 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall ERII gets a fundamental rating of 6 out of 10. We evaluated ERII against 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 has a decent growth rate and is not valued too expensively. This makes ERII very considerable for quality investing!


Dividend Valuation Growth Profitability Health

7

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.
  • ERII had positive earnings in 4 of the past 5 years.
  • Of the past 5 years ERII 4 years had a positive operating cash flow.
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 0 10M 20M 30M

1.2 Ratios

  • With a decent Return On Assets value of 9.31%, ERII is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • With a decent Return On Equity value of 10.79%, ERII is doing good in the industry, outperforming 64.62% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.89%, ERII is doing good in the industry, outperforming 66.92% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ERII is below the industry average of 10.27%.
  • The 3 year average ROIC (8.12%) for ERII is below the current ROIC(8.89%), indicating increased profibility in the last year.
Industry RankSector 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%
ERII Yearly ROA, ROE, ROICERII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • ERII's Profit Margin of 14.44% is amongst the best of the industry. ERII outperforms 86.92% of its industry peers.
  • ERII's Profit Margin has improved in the last couple of years.
  • ERII has a Operating Margin of 15.68%. This is in the better half of the industry: ERII outperforms 73.85% of its industry peers.
  • In the last couple of years the Operating Margin of ERII has grown nicely.
  • The Gross Margin of ERII (66.64%) is better than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of ERII has declined.
Industry RankSector 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%
ERII Yearly Profit, Operating, Gross MarginsERII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERII is destroying value.
  • ERII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ERII Yearly Shares OutstandingERII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 50M 100M 150M 200M 250M

2.2 Solvency

  • ERII has an Altman-Z score of 13.93. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 13.93, ERII belongs to the best of the industry, outperforming 96.92% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 13.93
ROIC/WACC0.98
WACC9.05%
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 0 50M 100M 150M 200M

2.3 Liquidity

  • ERII has a Current Ratio of 7.33. This indicates that ERII is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of ERII (7.33) is better than 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.
  • Looking at the Quick ratio, with a value of 5.75, ERII belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 7.33
Quick Ratio 5.75
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 50M 100M 150M

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

5

3. Growth

3.1 Past

  • ERII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.00%, which is quite impressive.
  • Measured over the past 5 years, ERII shows a small growth in Earnings Per Share. The EPS has been growing by 1.55% on average per year.
EPS 1Y (TTM)20%
EPS 3Y7.89%
EPS 5Y1.55%
EPS Q2Q%17.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.31%

3.2 Future

  • The Earnings Per Share is expected to grow by 51.49% 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 15.41% yearly.
EPS Next Y64.33%
EPS Next 2Y51.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.2%
Revenue Next 2Y12.05%
Revenue Next 3Y16.18%
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.
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 0 0.5 1

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.93, which indicates a rather expensive current valuation of ERII.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERII indicates a somewhat cheap valuation: ERII is cheaper than 80.00% of the companies listed in the same industry.
  • ERII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.07.
  • The Price/Forward Earnings ratio is 11.52, which indicates a very decent valuation of ERII.
  • Based on the Price/Forward Earnings ratio, ERII is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. ERII is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 18.93
Fwd PE 11.52
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERII is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ERII.
Industry RankSector Rank
P/FCF 27.24
EV/EBITDA 18.01
ERII Per share dataERII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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.
  • ERII's earnings are expected to grow with 51.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)12.2
EPS Next 2Y51.49%
EPS Next 3YN/A

More info and screens

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

0

5. Dividend

5.1 Amount

  • ERII does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ENERGY RECOVERY INC

NASDAQ:ERII (3/2/2026, 3:40:43 PM)

10.22

-0.21 (-2.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners91.04%
Inst Owner Change-1.18%
Ins Owners2.77%
Ins Owner Change4.68%
Market Cap541.35M
Revenue(TTM)N/A
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (82%)
Short Float %3.02%
Short Ratio4.29
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)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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)15.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 18.93
Fwd PE 11.52
P/S 4
P/FCF 27.24
P/OCF 26.22
P/B 2.99
P/tB 3.22
EV/EBITDA 18.01
EPS(TTM)0.54
EY5.28%
EPS(NY)0.89
Fwd EY8.68%
FCF(TTM)0.38
FCFY3.67%
OCF(TTM)0.39
OCFY3.81%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.29
PEG (5Y)12.2
Graham Number6.44
Profitability
Industry RankSector 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 RankSector 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 13.93
F-Score8
WACC9.05%
ROIC/WACC0.98
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)20%
EPS 3Y7.89%
EPS 5Y1.55%
EPS Q2Q%17.78%
EPS Next Y64.33%
EPS Next 2Y51.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.31%
Revenue Next Year9.2%
Revenue Next 2Y12.05%
Revenue Next 3Y16.18%
Revenue Next 5Y15.41%
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 6 / 10 to ERII.


Can you provide the valuation status for ENERGY RECOVERY INC?

ChartMill assigns a valuation rating of 6 / 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 18.93 and the Price/Book (PB) ratio is 2.99.


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 64.33% in the next year.