DB:5E2

Stock Analysis Report

Executive Summary

Energy Recovery, Inc. provides energy solutions to industrial fluid flow markets under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, AT, AquaBold, VorTeq, MTeq, IsoBoost, and IsoGen names.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Energy Recovery has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Energy Recovery's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.7%

DB:5E2

-2.7%

DE Machinery

-1.5%

DE Market


1 Year Return

3.1%

DB:5E2

-35.9%

DE Machinery

-10.4%

DE Market

5E2 outperformed the Machinery industry which returned -35.9% over the past year.

5E2 outperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

500IndustryMarket
7 Day-9.7%-2.7%-1.5%
30 Day-21.2%-7.5%-4.6%
90 Day-14.1%-17.6%-4.6%
1 Year3.1%3.1%-33.8%-35.9%-7.6%-10.4%
3 Year-28.9%-28.9%-25.1%-30.4%9.4%0.03%
5 Year137.2%137.2%1.2%-10.2%25.6%8.1%

Price Volatility Vs. Market

How volatile is Energy Recovery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Energy Recovery undervalued based on future cash flows and its price relative to the stock market?

35.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Energy Recovery's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Energy Recovery's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Energy Recovery is overvalued based on earnings compared to the DE Machinery industry average.

Energy Recovery is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Energy Recovery is good value based on expected growth next year.


Price Based on Value of Assets

Energy Recovery is overvalued based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

How is Energy Recovery expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

56.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Energy Recovery's revenue is expected to grow significantly at over 20% yearly.

Energy Recovery's earnings are expected to grow significantly at over 20% yearly.

Energy Recovery's revenue growth is expected to exceed the Germany market average.

Energy Recovery's earnings growth is expected to exceed the Germany market average.

Energy Recovery's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Energy Recovery will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Energy Recovery performed over the past 5 years?

69.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Energy Recovery has delivered over 20% year on year earnings growth in the past 5 years.

Energy Recovery's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Energy Recovery's 1-year earnings growth is negative, it can't be compared to the DE Machinery industry average.


Return on Equity

Energy Recovery has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Energy Recovery used its assets more efficiently than the DE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Energy Recovery has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Energy Recovery's financial position?


Financial Position Analysis

Energy Recovery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Energy Recovery's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Energy Recovery's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Energy Recovery's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Energy Recovery has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are -6.886454190212E+16x debt.


Next Steps

Dividend

What is Energy Recovery's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Energy Recovery's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Energy Recovery's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Energy Recovery has not reported any payouts.

Unable to verify if Energy Recovery's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Energy Recovery has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Energy Recovery's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Chris Gannon (47yo)

1.5yrs

Tenure

US$1,120,328

Compensation

Mr. Chris M. Gannon has been President, Chief Executive Officer and Director of Energy Recovery, Inc. since May 2, 2018 and was its Chief Financial Officer since April 2015. Mr. Gannon served as Interim Pr ...


CEO Compensation Analysis

Chris's remuneration is higher than average for companies of similar size in Germany.

Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

47yo

Average Age

The average tenure for the Energy Recovery management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

61.5yo

Average Age

The tenure for the Energy Recovery board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$273,20216 May 19
Eric Siebert
EntityIndividual
Shares29,173
Max PriceUS$9.36
SellUS$171,43516 May 19
Nocair Bensalah
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares18,322
Max PriceUS$9.36
SellUS$76,58316 May 19
Emily Smith
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares7,868
Max PriceUS$9.73
SellUS$116,61819 Mar 19
Rodney Clemente
EntityIndividual
Shares14,891
Max PriceUS$7.83

Ownership Breakdown


Management Team

  • Joshua Ballard

    Chief Financial Officer

    • Tenure: 1.0yrs
    • Compensation: US$1.63m
  • Chris Gannon (47yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$1.12m
  • Nocair Bensalah (50yo)

    Vice President of Operations

    • Tenure: 4.6yrs
    • Compensation: US$783.35k
  • Farshad Ghasripoor

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Emily Smith (34yo)

    Vice President of Corporate Development

    • Tenure: 0.8yrs
  • William Yeung (47yo)

    General Counsel

    • Tenure: 3.2yrs
  • James Siccardi

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Stacy Proctor

    Vice President of Human Resources

    • Tenure: 0.6yrs
  • Brandon Young

    Corporate Controller

    • Tenure: 0.6yrs

Board Members

  • Robert, Bob Mao (75yo)

    Chairman of the Board of Directors

    • Tenure: 0.2yrs
    • Compensation: US$135.00k
  • Olav Fjell (68yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$135.00k
  • Arve Hanstveit (64yo)

    Independent Director

    • Tenure: 24.0yrs
    • Compensation: US$145.00k
  • OP Lorentzen (66yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$140.00k
  • Alex Buehler (43yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$150.00k
  • Chris Gannon (47yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$1.12m
  • Sherif Foda (50yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$135.00k
  • Pamela Tondreau (59yo)

    Director

    • Tenure: 0.1yrs

Company Information

Energy Recovery, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energy Recovery, Inc.
  • Ticker: 500
  • Exchange: DB
  • Founded: 1992
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$484.788m
  • Listing Market Cap: US$436.891m
  • Shares outstanding: 54.96m
  • Website: https://www.energyrecovery.com

Number of Employees


Location

  • Energy Recovery, Inc.
  • 1717 Doolittle Drive
  • San Leandro
  • California
  • 94577
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERIINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2008
500DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2008

Biography

Energy Recovery, Inc. provides energy solutions to industrial fluid flow markets under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, AT, AquaBold, VorTeq, MTeq, IsoBoost, and IsoGen names. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 20:59
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.