13.98 USD
-0.32 (-2.24%)
14.09 USD
+0.11 (+0.79%)
ERII gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making ERII a very profitable company, without any liquidiy or solvency issues. ERII is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make ERII suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ERII was profitable.
- ERII had a positive operating cash flow in the past year.
- In the past 5 years ERII has always been profitable.
- In the past 5 years ERII always reported a positive cash flow from operatings.
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 78.03% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.79%, ERII is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.89%, ERII is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
- ERII had an Average Return On Invested Capital over the past 3 years of 8.12%. This is below the industry average of 10.24%.
- 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
- Looking at the Profit Margin, with a value of 14.44%, ERII belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.
- ERII's Profit Margin has improved in the last couple of years.
- ERII's Operating Margin of 15.68% is fine compared to the rest of the industry. ERII outperforms 72.73% of its industry peers.
- ERII's Operating Margin has improved in the last couple of years.
- ERII's Gross Margin of 66.64% is amongst the best of the industry. ERII outperforms 99.24% of its industry peers.
- 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.
- 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 17.85. This indicates that ERII is financially healthy and has little risk of bankruptcy at the moment.
- ERII has a better Altman-Z score (17.85) than 96.97% 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 | 17.85 |
ROIC/WACC0.91
WACC9.77%
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.
- 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.
- The Quick ratio of ERII (5.75) is better than 94.70% 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.
- 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.
- 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 Year3.83%
Revenue Next 2Y6.37%
Revenue Next 3Y8.76%
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
- The Price/Earnings ratio is 30.39, which means the current valuation is very expensive for ERII.
- ERII's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 26.94. ERII is around the same levels.
- A Price/Forward Earnings ratio of 15.75 indicates a correct valuation of ERII.
- ERII's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERII is cheaper than 81.82% of the companies in the same industry.
- ERII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
- 68.94% of the companies in the same industry are cheaper than ERII, based on the Enterprise Value to EBITDA ratio.
- ERII's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.26 | ||
| EV/EBITDA | 25.39 |
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)0.49
PEG (5Y)1.51
EPS Next 2Y40.43%
EPS Next 3Y40.17%
5. Dividend
5.1 Amount
- No dividends for ERII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.98
-0.32 (-2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners91.04%
Inst Owner Change0.09%
Ins Owners2.77%
Ins Owner Change-1.26%
Market Cap740.52M
Revenue(TTM)135.19M
Net Income(TTM)19.52M
Analysts81.82
Price Target18.6 (33.05%)
Short Float %2.8%
Short Ratio2.76
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)-0.49%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 15.75 | ||
| P/S | 5.48 | ||
| P/FCF | 37.26 | ||
| P/OCF | 35.86 | ||
| P/B | 4.1 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 25.39 |
EPS(TTM)0.46
EY3.29%
EPS(NY)0.89
Fwd EY6.35%
FCF(TTM)0.38
FCFY2.68%
OCF(TTM)0.39
OCFY2.79%
SpS2.55
BVpS3.41
TBVpS3.17
PEG (NY)0.49
PEG (5Y)1.51
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 | 17.85 |
F-Score8
WACC9.77%
ROIC/WACC0.91
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 30.39 and the Price/Book (PB) ratio is 4.1.
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.