ERII

Energy Recovery, Inc.

Fundamental data last updated:August 22, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Pollution & Treatment Controls

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells various solutions for the seawater reverse osmosis desalination and industrial wastewater treatment industries worldwide. The company operates through Water and Emerging Technologies segments. It offers a suite of products, including energy recovery devices, and high-pressure feed and recirculation pumps; hydraulic turbochargers and boosters; and spare parts, as well as repair, field, and commissioning services. The company also offers a solution to reduce energy consumption in natural gas processing and in refrigeration systems that use carbon dioxide. It provides its products under the ERI, Ultra PX, PX, Pressure Exchanger, PX Pressure Exchanger, PX PowerTrain, VorTeq, IsoBoost, AT, and AquaBold names to large engineering, procurement, and construction firms; end-users and industry consultants; original equipment manufacturers; and aftermarket customers. The company was incorporated in 1992 and is headquartered in San Leandro, California.

 


VALUATION

P/E

22.07

Market Cap ($M USD)

$444.84M

Forward P/E

6.35

PEG

0.03

PRICE TO SALES

3.26

PRICE TO BOOK

2.47

EV / EBITDA

10.41

5-Year Average P/E

Free Cash Flow Yield

6.11%

DCF Value

$9.29

Graham Number

$5.55

Price to FCF

16.37

EV to FCF

14.85

Earnings Yield

4.53%

FCF Yield

6.11%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.39

Next Year EPS Growth Estimate

$1.36

Next Year Revenue Growth Estimate

$275.00M

Return on Equity (ROE)

10.89%

FREE CASH FLOW

Operating Margin

19.87%

Debt-to-Equity

0.05

Piotroski F-Score

7

Altman Z-Score

13.64

Return on Invested Capital (ROIC)

14.14%

Current Ratio

9.28

Quick Ratio

7.50

Net Debt to EBITDA

-1.07

Interest Coverage

0.00

Gross Profit margin

64.29%

FCF PER SHARE

$0.52

REVENUE PER SHARE

$2.59

Gainseekers Quantitative Analysis

Summary

ERII’s valuation presents a compelling case for mispricing. With a Forward P/E of 6.71 and a PEG ratio of 0.03, the market seems to be underestimating its growth potential. The stock traded below its DCF Value, suggesting a potential undervaluation. The Altman Z-score of 14.12 indicates robust financial health, while an Earnings Yield of 4.28% reflects a reasonable return on investment. Overall, the metrics suggest a company poised for growth, yet priced conservatively.

AI Exposure / Tech Reliance

Operating within the Industrials sector, ERII is strategically positioned to leverage AI and modern technology. Its focus on pollution and treatment controls aligns with increasing regulatory demands and technological advancements. This positioning could enhance its adaptability and resilience in a rapidly evolving market.

The Bull Case

For the value-driven investor, ERII offers a tantalizing prospect. A ROIC of 14.14% and a Piotroski F-Score of 7 highlight its operational efficiency and financial strength. The company's Free Cash Flow Yield of 5.77% and a Gross Profit Margin of 64.29% underscore its pricing power and capital efficiency. These metrics paint a picture of a company with strong fundamentals and the ability to generate substantial returns.

The Bear Case

Despite its strengths, ERII faces structural risks. The Price/Book ratio of 2.61 and Price/Sales of 3.45 suggest it may be overvalued relative to its assets and revenue. The stock's proximity to its 52-week high raises concerns about technical overextension. Additionally, with a 0% dividend yield, income-focused investors might look elsewhere for returns.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$12.50

Institutional Ownership %

1-Year Beta

1.04

Insider Buying % (6 Mo)

Distance to 52-Week High

112.28%

Distance to 52-Week Low

5.68%

EARNINGS SURPRISE %

-130.00%

50-DAY SMA

$10.03

200-DAY SMA

$13.41

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.