Energy Recovery (ERII) Stock Overview
Designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. More details
| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
ERII Community Fair Values
Create NarrativeSee what 30 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Energy Recovery, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$8.85 |
| 52 Week High | US$18.32 |
| 52 Week Low | US$8.14 |
| Beta | 1.04 |
| 1 Month Change | -21.54% |
| 3 Month Change | -44.93% |
| 1 Year Change | -29.54% |
| 3 Year Change | -64.36% |
| 5 Year Change | -53.45% |
| Change since IPO | -9.97% |
Recent News & Updates
Analysis Article • May 13
Bearish: Analysts Just Cut Their Energy Recovery, Inc. (NASDAQ:ERII) Revenue and EPS estimates
Market forces rained on the parade of Energy Recovery, Inc. ( NASDAQ:ERII ) shareholders today, when the analysts...Seeking Alpha • May 13
Energy Recovery: It Has To Be Easier Than This
Summary Energy Recovery (ERII) continues to struggle, with sales showing little progress since 2017. Recent first quarter results are discouraging, despite $90 million in cash (and investments) and no long-term debt. Key executive departures, including the President and CFO, raise significant red flags. I maintain a strong sell rating due to stalled fundamentals and leadership instability. Read the full article on Seeking Alpha
Narrative Update • May 13
ERII: Megaproject Delays And Executive Changes Will Shape Core Water Focus
Analysts now see fair value for Energy Recovery at $10.00, down from $12.00. This reflects lower revenue growth and margin assumptions, as well as a slightly higher discount rate following a series of recent downgrades and reduced price targets tied to project delay risks.Recent updates
Analysis Article • May 13
Bearish: Analysts Just Cut Their Energy Recovery, Inc. (NASDAQ:ERII) Revenue and EPS estimates
Market forces rained on the parade of Energy Recovery, Inc. ( NASDAQ:ERII ) shareholders today, when the analysts...Seeking Alpha • May 13
Energy Recovery: It Has To Be Easier Than This
Summary Energy Recovery (ERII) continues to struggle, with sales showing little progress since 2017. Recent first quarter results are discouraging, despite $90 million in cash (and investments) and no long-term debt. Key executive departures, including the President and CFO, raise significant red flags. I maintain a strong sell rating due to stalled fundamentals and leadership instability. Read the full article on Seeking AlphaNarrative Update • May 13
ERII: Megaproject Delays And Executive Changes Will Shape Core Water Focus
Analysts now see fair value for Energy Recovery at $10.00, down from $12.00. This reflects lower revenue growth and margin assumptions, as well as a slightly higher discount rate following a series of recent downgrades and reduced price targets tied to project delay risks.
Narrative Update • Apr 28
ERII: Water Projects And New Desalination Technology Will Support Future Upside
Analysts now center their price expectations for Energy Recovery around $16, reflecting recent target cuts from $23 and $16 as they factor in project delay risks, a softer P/E outlook, and a focus on the core Water business. Analyst Commentary Recent research shows a split but still constructive tone around Energy Recovery, with several bullish analysts highlighting valuation support and potential upside if execution on delayed projects and the core Water business improves.Narrative Update • Apr 13
ERII: Fair Value View Will Weigh Megaproject Delays And Core Water Focus
Narrative Update on Energy Recovery The analyst price target for Energy Recovery has shifted from $16 to $12 as analysts factor in lower revenue growth and profit margin assumptions, along with updated Street research that includes reduced price targets tied to megaproject timing and a reaffirmed focus on the core Water business. Analyst Commentary Recent Street research around Energy Recovery has centered on recalibrated price targets and timing risks tied to large projects, which has contributed to a more cautious tone among some bearish analysts.Narrative Update • Mar 30
ERII: Water Segment And Desalination Projects Will Drive Future Upside Potential
Analysts have trimmed the fair value estimate for Energy Recovery to $16 from $23, reflecting updated assumptions for revenue growth, profit margins and future P/E, alongside recent Street research that includes lower price targets and mixed ratings following project timing shifts and a renewed focus on the core Water business. Analyst Commentary Recent research presents a mixed but generally constructive view, with several bullish analysts still seeing upside potential for Energy Recovery despite trimmed targets and project timing shifts.
Narrative Update • Mar 16
ERII: Core Water Projects And New Coverage Will Support Future Upside
Narrative Update on Energy Recovery The analyst price target for Energy Recovery has shifted from $19.05 to $14.00, as analysts recalibrated expectations around revenue growth, profit margins, and future P/E assumptions following recent research updates that include new coverage and revised targets tied to project timing and a focus on the core Water business. Analyst Commentary Recent research on Energy Recovery reflects a mix of optimism around the core Water business and caution around execution risk and timing of large projects.Narrative Update • Mar 02
ERII: Core Water Focus And Megaproject Timing Will Support Future Upside
Narrative Update on Energy Recovery Analysts have trimmed their average price target for Energy Recovery to $12, down from $16. The change is tied to recent revenue shortfalls from two delayed Megaprojects and a renewed focus on the core Water business, which underpins updated fair value, growth, margin and future P/E assumptions.Narrative Update • Feb 16
ERII: Fair Value View Will Balance Refrigeration Delays And Buyback Support
Narrative Update on Energy Recovery Analysts have adjusted their price target on Energy Recovery from $15.00 to $16.00, reflecting updated assumptions around revenue growth, profit margins, and future price-to-earnings (P/E) expectations. Valuation Changes Fair Value: updated from $15.00 to $16.00, representing a modest upward adjustment in the valuation estimate.Narrative Update • Feb 02
ERII: CO2 Refrigeration Progress And Buybacks Will Support Future Upside
Analysts have raised their price target on Energy Recovery to US$23 from US$17. They cite CO2 refrigeration results that are in line with expectations, even though original equipment manufacturer adoption is running about a year behind their prior timeline.Narrative Update • Jan 19
ERII: Higher Forecast Margins And CO2 Rollout Will Support Stronger Upside
Analysts have lifted their price target on Energy Recovery to US$23 from US$20, citing updated assumptions around revenue growth, profit margin potential, discount rate, and future P/E. This is supported by recent research that points to CO2 refrigeration performing in line with expectations even as original equipment manufacturer uptake runs about a year behind earlier timelines.Analysis Article • Jan 09
Energy Recovery, Inc. (NASDAQ:ERII) Not Flying Under The Radar
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may...Narrative Update • Jan 05
ERII: CO2 Refrigeration Delays And Buybacks Will Shape Future Share Performance
Analysts have raised their price target on Energy Recovery shares to $23 from $17, citing solid performance in CO2 refrigeration despite slower than expected adoption among original equipment manufacturers. Analyst Commentary Recent price target revisions reflect a mix of confidence in the long term CO2 refrigeration opportunity and near term caution around execution and adoption timelines.Narrative Update • Dec 19
ERII: CO2 Refrigeration Adoption Delays Will Temper Long-Term Confidence
Analysts have raised their price target on Energy Recovery by approximately $1 to about $15, reflecting increased confidence in the company’s long term revenue growth and margin outlook, even as original equipment manufacturer adoption of CO2 refrigeration remains modestly delayed. Analyst Commentary Recent research updates reflect a mix of optimism on long term growth prospects and caution around execution timing, particularly in the CO2 refrigeration segment.Narrative Update • Dec 05
ERII: Rising CO2 Refrigeration Adoption Will Drive Long-Term Upside
Analysts modestly lifted their price expectations for Energy Recovery, pointing to stronger long term profitability and supportive new targets in the high teens to low twenties, including a recent move to $23 from $17, even as they temper near term revenue growth assumptions. Analyst Commentary Recent Street research highlights a constructive but selective view on Energy Recovery, with valuation targets moving higher as analysts balance solid execution in core markets against pacing risks in newer growth channels.Narrative Update • Nov 21
ERII: Renewed OEM Partnerships Will Unlock Significant Upside Potential
Analysts have raised their fair value estimate for Energy Recovery from $17.40 to $18.60 per share. They cite increased confidence in both ongoing CO2 refrigeration performance and renewed OEM uptake expectations.Narrative Update • Nov 06
ERII: Profit Margins And Industry Tailwinds Will Drive Outperformance Ahead
Analysts have raised their price target for Energy Recovery from $16.50 to $17.40, citing improved revenue growth forecasts, higher profit margins, and a favorable outlook in recent research coverage. Analyst Commentary Recent analyst coverage reflects growing optimism about Energy Recovery’s future prospects, supported by increased price targets and positive forecasts.Analysis Article • Nov 01
At US$17.11, Is It Time To Put Energy Recovery, Inc. (NASDAQ:ERII) On Your Watch List?
Energy Recovery, Inc. ( NASDAQ:ERII ), is not the largest company out there, but it received a lot of attention from a...Analysis Article • Oct 17
Are Investors Undervaluing Energy Recovery, Inc. (NASDAQ:ERII) By 24%?
Key Insights Using the 2 Stage Free Cash Flow to Equity, Energy Recovery fair value estimate is US$21.96 Energy...Narrative Update • Aug 06
Global Water Scarcity And Decarbonization Will Unlock Long-Term Opportunities
The analyst price target for Energy Recovery was revised upward primarily due to a substantial increase in consensus revenue growth forecasts, partially offset by a decline in net profit margin, resulting in a new fair value estimate of $15.62. Valuation Changes Summary of Valuation Changes for Energy Recovery The Consensus Analyst Price Target has risen from $14.50 to $15.62.Analysis Article • May 10
Energy Recovery, Inc.'s (NASDAQ:ERII) 25% Cheaper Price Remains In Tune With Earnings
Energy Recovery, Inc. ( NASDAQ:ERII ) shareholders that were waiting for something to happen have been dealt a blow...Analysis Article • May 09
Investors Will Want Energy Recovery's (NASDAQ:ERII) Growth In ROCE To Persist
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...Analysis Article • Mar 25
Here's Why We Think Energy Recovery (NASDAQ:ERII) Is Well Worth Watching
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...Analysis Article • Mar 05
We Think Energy Recovery's (NASDAQ:ERII) Healthy Earnings Might Be Conservative
Energy Recovery, Inc.'s ( NASDAQ:ERII ) recent earnings report didn't offer any surprises, with the shares unchanged...Seeking Alpha • Feb 28
Energy Recovery Growth Pipeline Advances Slowly, Warrants A Small Position
Summary Energy Recovery, Inc. presents an attractive opportunity for a small initial position based on adjusted earnings yield versus growth perspectives and execution risk. ERII met full-year guidance with strong Q4 2024 results, crucial for generating yearly profits, because of the lumpy nature of desalination projects. The company projects moderate growth until 2027, with significant acceleration expected thereafter, driven by desalination, wastewater, and CO2 refrigeration segments. Valuation risks are compensated by reinvestment in new business lines, with potential high returns in a positive scenario and reasonable security from desalination earnings. Read the full article on Seeking AlphaSeeking Alpha • Feb 10
Energy Recovery: Riding Megatrends With Lowered Ambitions
Summary Energy Recovery leverages population growth, water scarcity, and environmental protection trends, with a strong market position in desalination and emerging opportunities in CO2 refrigeration and wastewater treatment. Despite past overpromises, Energy Recovery's new leadership aims to execute revised targets, focusing on market penetration and product iterations to drive growth. The company boasts a strong balance sheet, with over $100 million in net cash and a significant share repurchase program, enabling growth investments. Investment in Energy Recovery hinges on believing in sustained revenue growth, high profitability, and successful expansion into new verticals. Read the full article on Seeking AlphaAnalysis Article • Jan 11
Investors Still Waiting For A Pull Back In Energy Recovery, Inc. (NASDAQ:ERII)
With a price-to-earnings (or "P/E") ratio of 42.2x Energy Recovery, Inc. ( NASDAQ:ERII ) may be sending very bearish...Seeking Alpha • Oct 31
Energy Recovery Delivered In Q3 But Faces A Challenging Q4, Still A Hold
Summary Energy Recovery reported Q3 2024 results with much better performance in delivering products to their mega-projects and recording revenues. Still, about 50% of yearly revenue has to be delivered in Q4, leaving significant guidance-miss risk, which should not affect overall business profitability anyway. The company issued a white paper with positive data on the refrigeration technology, although it is still early to determine its value. Without considering refrigeration, the company trades at a low yield, even assuming significant growth ahead for desalination and wastewater. The excess value is predicated on the refrigeration business, which, I believe, is not an opportunity at these prices. Read the full article on Seeking AlphaAnalysis Article • Oct 26
Is Energy Recovery, Inc. (NASDAQ:ERII) Potentially Undervalued?
Energy Recovery, Inc. ( NASDAQ:ERII ), might not be a large cap stock, but it received a lot of attention from a...Analysis Article • Oct 09
Energy Recovery, Inc.'s (NASDAQ:ERII) 29% Jump Shows Its Popularity With Investors
Energy Recovery, Inc. ( NASDAQ:ERII ) shares have continued their recent momentum with a 29% gain in the last month...
New Narrative • Sep 24
Tactical Expansion And Innovation Propel Growth In Water And Energy Sectors
Introduction of Michael Mancini as the new CFO and strategic planning advancements aim to boost investor confidence and enhance operational efficiency.Shareholder Returns
| ERII | US Machinery | US Market | |
|---|---|---|---|
| 7D | -2.3% | 0.2% | 1.1% |
| 1Y | -29.5% | 41.3% | 28.7% |
Return vs Industry: ERII underperformed the US Machinery industry which returned 41.3% over the past year.
Return vs Market: ERII underperformed the US Market which returned 28.7% over the past year.
Price Volatility
| ERII volatility | |
|---|---|
| ERII Average Weekly Movement | 13.2% |
| Machinery Industry Average Movement | 6.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.4% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: ERII's share price has been volatile over the past 3 months compared to the US market.
Volatility Over Time: ERII's weekly volatility has increased from 8% to 13% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1992 | 230 | David Moon | www.energyrecovery.com |
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation pumps for use in water treatment industries, including seawater and brackish desalination, and wastewater treatment.
Energy Recovery, Inc. Fundamentals Summary
| ERII fundamental statistics | |
|---|---|
| Market cap | US$456.18m |
| Earnings (TTM) | US$20.59m |
| Revenue (TTM) | US$136.63m |
22.2x
P/E Ratio3.3x
P/S RatioIs ERII overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ERII income statement (TTM) | |
|---|---|
| Revenue | US$136.63m |
| Cost of Revenue | US$48.82m |
| Gross Profit | US$87.81m |
| Other Expenses | US$67.22m |
| Earnings | US$20.59m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.40 |
| Gross Margin | 64.27% |
| Net Profit Margin | 15.07% |
| Debt/Equity Ratio | 0% |
How did ERII perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/25 09:47 |
| End of Day Share Price | 2026/05/22 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
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.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Energy Recovery, Inc. is covered by 21 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| J. Horwitz | Baird |
| Debra Coy | Brean Capital Historical (Janney Montgomery) |
| Ryan Pfingst | B. Riley Securities, Inc. |