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ERII

Energy RecoveryNasdaqGS:ERII Stock Report

Market Cap

US$1.1b

7D

2.8%

1Y

114.4%

Updated

16 Oct, 2021

Data

Company Financials +
ERII fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ERII Overview

Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells various solutions for industrial fluid-flow markets worldwide.

Energy Recovery Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Energy Recovery
Historical stock prices
Current Share PriceUS$19.94
52 Week HighUS$8.64
52 Week LowUS$23.69
Beta1.27
1 Month Change2.15%
3 Month Change-1.14%
1 Year Change114.41%
3 Year Change159.30%
5 Year Change41.82%
Change since IPO102.85%

Recent News & Updates

Oct 05
Energy Recovery (NASDAQ:ERII) Is Looking To Continue Growing Its Returns On Capital

Energy Recovery (NASDAQ:ERII) Is Looking To Continue Growing Its Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Sep 10
Calculating The Intrinsic Value Of Energy Recovery, Inc. (NASDAQ:ERII)

Calculating The Intrinsic Value Of Energy Recovery, Inc. (NASDAQ:ERII)

Does the September share price for Energy Recovery, Inc. ( NASDAQ:ERII ) reflect what it's really worth? Today, we will...

Jul 28

Energy Recovery: Despite Diversification Efforts, SWRO Still Rules The Roost

Energy Recovery has been trying to diversify its markets for many years. However, ERII is still arguably a one-trick pony: its SWRO desalination business. That said, the market obviously sees a lot of promise in the potential for new lines of business in industrial wastewater and CO2 refrigeration. Meantime, the many years-long efforts to commercialize Vor-Teq in the shale drilling patch have yet to bear fruit. And it may never do so. Yet the stock price is up 170% over the past year. With a forward P/E=88x, investors will be looking for some good "new markets" updates on ERII's upcoming August 5th Q2 conference call.

Shareholder Returns

ERIIUS MachineryUS Market
7D2.8%1.3%2.0%
1Y114.4%24.7%27.6%

Return vs Industry: ERII exceeded the US Machinery industry which returned 24.7% over the past year.

Return vs Market: ERII exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is ERII's price volatile compared to industry and market?
ERII volatility
ERII Beta1.27
Industry Beta1.26
Market Beta1

Stable Share Price: ERII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ERII's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992216Robert, Bob Maohttps://www.energyrecovery.com

Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells various solutions for industrial fluid-flow markets worldwide. The company operates through Water, and Oil & Gas segments. It designs, engineers, manufactures, and supplies various energy recovery devices (ERDs), including positive displacement isobaric ERDs and centrifugal-type ERDs, such as our hydraulic turbochargers; and high-pressure feed and circulation pumps.

Energy Recovery Fundamentals Summary

How do Energy Recovery's earnings and revenue compare to its market cap?
ERII fundamental statistics
Market CapUS$1.14b
Earnings (TTM)US$16.78m
Revenue (TTM)US$103.38m

67.9x

P/E Ratio

11.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERII income statement (TTM)
RevenueUS$103.38m
Cost of RevenueUS$30.68m
Gross ProfitUS$72.70m
ExpensesUS$55.93m
EarningsUS$16.78m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin70.33%
Net Profit Margin16.23%
Debt/Equity Ratio0%

How did ERII perform over the long term?

See historical performance and comparison

Valuation

Is Energy Recovery undervalued compared to its fair value and its price relative to the market?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERII ($19.94) is trading below our estimate of fair value ($26.13)

Significantly Below Fair Value: ERII is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ERII is poor value based on its PE Ratio (67.9x) compared to the US Machinery industry average (29.3x).

PE vs Market: ERII is poor value based on its PE Ratio (67.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ERII is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ERII is overvalued based on its PB Ratio (6.3x) compared to the US Machinery industry average (2.8x).


Future Growth

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

54.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERII's forecast earnings growth (54.4% per year) is above the savings rate (2%).

Earnings vs Market: ERII's earnings (54.4% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ERII's revenue (25% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ERII's revenue (25% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERII's Return on Equity is forecast to be low in 3 years time (19.1%).


Past Performance

How has Energy Recovery performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERII has high quality earnings.

Growing Profit Margin: ERII's current net profit margins (16.2%) are lower than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: ERII has become profitable over the past 5 years, growing earnings by 27% per year.

Accelerating Growth: ERII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ERII had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Machinery industry average (21.7%).


Return on Equity

High ROE: ERII's Return on Equity (9.3%) is considered low.


Financial Health

How is Energy Recovery's financial position?


Financial Position Analysis

Short Term Liabilities: ERII's short term assets ($147.8M) exceed its short term liabilities ($13.3M).

Long Term Liabilities: ERII's short term assets ($147.8M) exceed its long term liabilities ($16.3M).


Debt to Equity History and Analysis

Debt Level: ERII is debt free.

Reducing Debt: ERII has no debt compared to 5 years ago when its debt to equity ratio was 0.07%.

Debt Coverage: ERII has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ERII has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ERII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ERII's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ERII's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERII's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERII's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Robert, Bob Mao (77 yo)

1.92yrs

Tenure

US$2,092,007

Compensation

Mr. Yu-Lang Mao, also known as Robert & Bob, serves as the President & Chief Executive Officer of Energy Recovery, Inc. since May 5, 2020. He serves as an Advisor at PAC-LINK Management Corp. Mr. Mao serve...


CEO Compensation Analysis

Compensation vs Market: Robert, Bob's total compensation ($USD2.09M) is about average for companies of similar size in the US market ($USD2.26M).

Compensation vs Earnings: Robert, Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ERII's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: ERII's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ERII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Energy Recovery, Inc.
  • Ticker: ERII
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.140b
  • Shares outstanding: 57.15m
  • Website: https://www.energyrecovery.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:12
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.