ENERGY RECOVERY INC (ERII) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ERII • US29270J1007

14.98 USD
+0.17 (+1.15%)
At close: Feb 4, 2026
14.98 USD
0 (0%)
After Hours: 2/4/2026, 8:16:33 PM
Fundamental Rating

7

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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ERII is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, ERII could be worth investigating further for growth and 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.
  • 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.
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

  • ERII has a better Return On Assets (9.31%) than 79.55% of its industry peers.
  • ERII's Return On Equity of 10.79% is fine compared to the rest of the industry. ERII outperforms 65.91% of its industry peers.
  • ERII has a better Return On Invested Capital (8.89%) than 65.15% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ERII is below the industry average of 10.37%.
  • The last Return On Invested Capital (8.89%) for ERII is above the 3 year average (8.12%), which is a sign of increasing profitability.
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 86.36% of its industry peers.
  • In the last couple of years the Profit Margin of ERII has grown nicely.
  • ERII has a Operating Margin of 15.68%. This is in the better half of the industry: ERII outperforms 71.97% of its industry peers.
  • ERII's Operating Margin has improved in the last couple of years.
  • ERII has a better Gross Margin (66.64%) than 99.24% 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

9

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERII is destroying 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.
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

  • An Altman-Z score of 18.95 indicates that ERII is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 18.95, ERII belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
  • ERII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 18.95
ROIC/WACC0.92
WACC9.7%
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.
  • With an excellent Current ratio value of 7.33, ERII belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
  • A Quick Ratio of 5.75 indicates that ERII has no problem at all paying its short term obligations.
  • ERII's Quick ratio of 5.75 is amongst the best of the industry. ERII outperforms 94.70% of its industry peers.
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

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.29% 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 0.10% 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)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 40.17% 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 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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 32.57 indicates a quite expensive valuation of ERII.
  • The rest of the industry has a similar Price/Earnings ratio as ERII.
  • ERII's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.25.
  • The Price/Forward Earnings ratio is 16.88, which indicates a correct valuation of ERII.
  • Based on the Price/Forward Earnings ratio, ERII is valued a bit cheaper than 78.79% of the companies in the same industry.
  • ERII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.57
Fwd PE 16.88
ERII Price Earnings VS Forward Price EarningsERII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERII is valued a bit more expensive than the industry average as 70.45% of the companies are valued more cheaply.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ERII.
Industry RankSector Rank
P/FCF 39.92
EV/EBITDA 27.47
ERII Per share dataERII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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)0.53
PEG (5Y)1.62
EPS Next 2Y40.43%
EPS Next 3Y40.17%

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 (2/4/2026, 8:16:33 PM)

After market: 14.98 0 (0%)

14.98

+0.17 (+1.15%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05
Earnings (Next)02-25
Inst Owners91.04%
Inst Owner Change-3.26%
Ins Owners2.77%
Ins Owner Change-0.97%
Market Cap793.49M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (24.17%)
Short Float %2.76%
Short Ratio3.53
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)10.55%
EPS NQ rev (1m)0%
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 RankSector Rank
PE 32.57
Fwd PE 16.88
P/S 5.87
P/FCF 39.92
P/OCF 38.43
P/B 4.39
P/tB 4.72
EV/EBITDA 27.47
EPS(TTM)0.46
EY3.07%
EPS(NY)0.89
Fwd EY5.92%
FCF(TTM)0.38
FCFY2.5%
OCF(TTM)0.39
OCFY2.6%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.53
PEG (5Y)1.62
Graham Number5.94
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 18.95
F-Score8
WACC9.7%
ROIC/WACC0.92
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 32.57 and the Price/Book (PB) ratio is 4.39.


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.