company background image
ERII

Energy Recovery NasdaqGS:ERII Stock Report

Last Price

US$23.02

Market Cap

US$1.3b

7D

3.6%

1Y

20.0%

Updated

06 Aug, 2022

Data

Company Financials +
ERII fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ERII Stock Overview

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.

Energy Recovery Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Energy Recovery
Historical stock prices
Current Share PriceUS$23.02
52 Week HighUS$24.99
52 Week LowUS$16.92
Beta1.24
1 Month Change14.76%
3 Month Change25.93%
1 Year Change20.02%
3 Year Change137.32%
5 Year Change264.24%
Change since IPO134.18%

Recent News & Updates

Jul 25
What Does Energy Recovery, Inc.'s (NASDAQ:ERII) Share Price Indicate?

What Does Energy Recovery, Inc.'s (NASDAQ:ERII) Share Price Indicate?

Energy Recovery, Inc. ( NASDAQ:ERII ), might not be a large cap stock, but it saw a decent share price growth in the...

Jun 19

Energy Recovery: A Novel Solution But At An Unreasonable Price

Energy Recovery is a fascinating company that has built itself around a unique type of product. This technology should make the world healthier in a lot of ways, but that doesn't make it a great investment. ERII stock today looks far too pricey, especially given the firm's growth rate.

Shareholder Returns

ERIIUS MachineryUS Market
7D3.6%-0.6%1.0%
1Y20.0%-12.9%-12.9%

Return vs Industry: ERII exceeded the US Machinery industry which returned -12.9% over the past year.

Return vs Market: ERII exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is ERII's price volatile compared to industry and market?
ERII volatility
ERII Average Weekly Movement4.8%
Machinery Industry Average Movement6.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: ERII is less volatile than 75% 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
1992222Robert, Bob Maohttps://www.energyrecovery.com

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.

Energy Recovery Fundamentals Summary

How do Energy Recovery's earnings and revenue compare to its market cap?
ERII fundamental statistics
Market CapUS$1.30b
Earnings (TTM)US$11.87m
Revenue (TTM)US$107.20m

109.7x

P/E Ratio

12.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERII income statement (TTM)
RevenueUS$107.20m
Cost of RevenueUS$32.93m
Gross ProfitUS$74.27m
Other ExpensesUS$62.40m
EarningsUS$11.87m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin69.28%
Net Profit Margin11.07%
Debt/Equity Ratio0%

How did ERII perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ERII undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERII?

Other financial metrics that can be useful for relative valuation.

ERII key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.5x
Enterprise Value/EBITDA62.9x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does ERII's PE Ratio compare to its peers?

ERII PE Ratio vs Peers
The above table shows the PE ratio for ERII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average48.6x
OFLX Omega Flex
48.4xn/aUS$1.2b
PRLB Proto Labs
52.9x34.5%US$1.3b
SXI Standex International
18.8xn/aUS$1.2b
EPAC Enerpac Tool Group
75.7x53.0%US$1.2b
ERII Energy Recovery
109.7x51.9%US$1.3b

Price-To-Earnings vs Peers: ERII is expensive based on its Price-To-Earnings Ratio (109.7x) compared to the peer average (48.6x).


Price to Earnings Ratio vs Industry

How does ERII's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: ERII is expensive based on its Price-To-Earnings Ratio (109.7x) compared to the US Machinery industry average (22.4x)


Price to Earnings Ratio vs Fair Ratio

What is ERII's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio109.7x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: ERII is expensive based on its Price-To-Earnings Ratio (109.7x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).


Share Price vs Fair Value

What is the Fair Price of ERII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERII ($23.02) is trading above our estimate of fair value ($12.37)

Significantly Below Fair Value: ERII is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


51.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERII's forecast earnings growth (51.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ERII's earnings (51.9% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: ERII's revenue (24% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ERII's revenue (24% 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 (18.3%).


Discover growth companies

Past Performance

How has Energy Recovery performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERII has high quality earnings.

Growing Profit Margin: ERII's current net profit margins (11.1%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: ERII's earnings have grown by 0.2% per year over the past 5 years.

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 (-29.2%) over the past year, making it difficult to compare to the Machinery industry average (10.2%).


Return on Equity

High ROE: ERII's Return on Equity (7.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Energy Recovery's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERII's short term assets ($129.1M) exceed its short term liabilities ($15.2M).

Long Term Liabilities: ERII's short term assets ($129.1M) exceed its long term liabilities ($14.4M).


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 0.05%.

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


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ERII has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Robert, Bob Mao (78 yo)

2.75yrs

Tenure

US$2,006,933

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 ($USD2.01M) is below average for companies of similar size in the US market ($USD5.42M).

Compensation vs Earnings: Robert, Bob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ERII's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: ERII's board of directors are considered experienced (5.9 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 not been meaningfully diluted in the past year.


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
  • Implied Market Cap: US$1.302b
  • Shares outstanding: 56.56m
  • 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 Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.