15.47 USD
+0.36 (+2.38%)
At close: Feb 6, 2026
15.47 USD
0 (0%)
After Hours: 2/6/2026, 8:00:01 PM
ERII gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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!.
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.
- In the past 5 years ERII has always been profitable.
- ERII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.31%, ERII is in the better half of the industry, outperforming 79.55% 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 65.91% of the companies in the same industry.
- ERII has a better Return On Invested Capital (8.89%) than 65.15% of its industry peers.
- ERII had an Average Return On Invested Capital over the past 3 years of 8.12%. This 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 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 86.36% of the companies in the same industry.
- In the last couple of years the Profit Margin of ERII has grown nicely.
- The Operating Margin of ERII (15.68%) is better than 71.97% of its industry peers.
- In the last couple of years the Operating Margin of ERII has grown nicely.
- With an excellent Gross Margin value of 66.64%, ERII belongs to the best of the industry, outperforming 99.24% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERII is destroying value.
- ERII has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ERII has been reduced compared to 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 19.49. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 19.49, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.49 |
ROIC/WACC0.92
WACC9.62%
2.3 Liquidity
- A Current Ratio of 7.33 indicates that ERII has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 7.33, ERII belongs to the top 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.
- 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.
- 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.
- ERII shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
- 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
- The Earnings Per Share is expected to grow by 40.17% on average over the next years. This is a very strong growth
- 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 Year3.94%
Revenue Next 2Y6.54%
Revenue Next 3Y9.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
- ERII is valuated quite expensively with a Price/Earnings ratio of 33.63.
- Compared to the rest of the industry, the Price/Earnings ratio of ERII is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ERII to the average of the S&P500 Index (27.92), we can say ERII is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 17.43, ERII is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ERII indicates a somewhat cheap valuation: ERII is cheaper than 78.79% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, ERII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 17.43 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.23 | ||
| EV/EBITDA | 28.49 |
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 40.17% in the coming years.
PEG (NY)0.55
PEG (5Y)1.67
EPS Next 2Y40.43%
EPS Next 3Y40.17%
5. Dividend
5.1 Amount
- No dividends for ERII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.47
+0.36 (+2.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners91.04%
Inst Owner Change-3.26%
Ins Owners2.77%
Ins Owner Change-0.97%
Market Cap819.45M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (20.23%)
Short Float %2.76%
Short Ratio3.53
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%
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)1.54%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 17.43 | ||
| P/S | 6.06 | ||
| P/FCF | 41.23 | ||
| P/OCF | 39.69 | ||
| P/B | 4.53 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 28.49 |
EPS(TTM)0.46
EY2.97%
EPS(NY)0.89
Fwd EY5.74%
FCF(TTM)0.38
FCFY2.43%
OCF(TTM)0.39
OCFY2.52%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.55
PEG (5Y)1.67
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 | 19.49 |
F-Score8
WACC9.62%
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 Year3.94%
Revenue Next 2Y6.54%
Revenue Next 3Y9.28%
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 4 / 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 33.63 and the Price/Book (PB) ratio is 4.53.
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.