Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and markets various solutions for industrial fluid flow markets worldwide.
+ 1 more risk
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Energy Recovery's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ERII's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ERII underperformed the US Machinery industry which returned -6.4% over the past year.
Return vs Market: ERII underperformed the US Market which returned 6% over the past year.
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
3 days ago | Simply Wall StShould You Use Energy Recovery's (NASDAQ:ERII) Statutory Earnings To Analyse It?
3 weeks ago | Simply Wall StIs Energy Recovery, Inc.'s (NASDAQ:ERII) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
1 month ago | Simply Wall StIs Energy Recovery's (NASDAQ:ERII) 168% Share Price Increase Well Justified?
Is Energy Recovery undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERII ($6.85) is trading below our estimate of fair value ($20.09)
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 (42.5x) compared to the Machinery industry average (18.8x).
PE vs Market: ERII is poor value based on its PE Ratio (42.5x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: ERII is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: ERII is overvalued based on its PB Ratio (2.8x) compared to the US Machinery industry average (1.9x).
How is Energy Recovery forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERII's forecast earnings growth (30% per year) is above the savings rate (2.2%).
Earnings vs Market: ERII's earnings (30% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ERII's revenue (13.9% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ERII's revenue (13.9% per year) is forecast to grow slower 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 (13.5%).
How has Energy Recovery performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERII has a high level of non-cash earnings.
Growing Profit Margin: ERII's current net profit margins (10%) are lower than last year (31.5%).
Past Earnings Growth Analysis
Earnings Trend: ERII has become profitable over the past 5 years, growing earnings by 59.1% 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 (-65%) over the past year, making it difficult to compare to the Machinery industry average (-5.4%).
Return on Equity
High ROE: ERII's Return on Equity (6.4%) is considered low.
How is Energy Recovery's financial position?
Financial Position Analysis
Short Term Liabilities: ERII's short term assets ($103.8M) exceed its short term liabilities ($25.7M).
Long Term Liabilities: ERII's short term assets ($103.8M) exceed its long term liabilities ($26.6M).
Debt to Equity History and Analysis
Debt Level: ERII is debt free.
Reducing Debt: ERII has no debt compared to 5 years ago when its debt to equity ratio was 0.09%.
Debt Coverage: ERII has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ERII has no debt, therefore coverage of interest payments is not a concern.
What is Energy Recovery current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ERII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ERII's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ERII's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ERII's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ERII's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Robert, Bob Mao (76yo)
Mr. Yu-Lang Mao, also known as Robert & Bob, serves as the President & Chief Executive Officer of Energy Recovery, Inc. since May 5, 2020. He serves as an Advisor at PAC-LINK Management Corp. Mr. Mao serve ...
CEO Compensation Analysis
Compensation vs Market: Robert, Bob's total compensation ($USD569.54K) is below average for companies of similar size in the US market ($USD2.13M).
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.
|Chief Financial Officer||1.92yrs||US$847.70k||0.0013% $4.8k|
|Chief Technology Officer||2.67yrs||US$719.91k||0.0094% $35.8k|
|Senior Vice President of Water||0.50yr||US$784.56k||0.0043% $16.5k|
|Vice President of Operations||5.5yrs||US$783.35k||no data|
|Senior VP of Corporate Development & Operations||0.50yr||no data||0.0039% $14.7k|
|Vice President of Investor Relations||no data||no data||no data|
|Chief Legal Officer||4.08yrs||no data||0.037% $142.6k|
|Vice President of Human Resources||1.5yrs||no data||no data|
|Corporate Controller||1.5yrs||no data||no data|
Experienced Management: ERII's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
|Independent Director||5.08yrs||US$135.00k||0.032% $123.3k|
|Independent Director||24.92yrs||US$145.00k||2.01% $7.7m|
|Independent Director||5.42yrs||US$140.00k||0.79% $3.0m|
|Independent Director||5.42yrs||US$150.00k||0.11% $411.0k|
|Independent Director||3.83yrs||US$135.00k||no data|
|Lead Independent Director||0.17yr||US$95.23k||no data|
Experienced Board: ERII's board of directors are considered experienced (5.1 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Energy Recovery, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Energy Recovery, Inc.
- Ticker: ERII
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$381.068m
- Shares outstanding: 55.63m
- Website: https://www.energyrecovery.com
Number of Employees
- Energy Recovery, Inc.
- 1717 Doolittle Drive
- San Leandro
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ERII||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jul 2008|
|500||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 2008|
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and markets various solutions for industrial fluid flow markets worldwide. The company operates through Water, and Oil & Gas segments. The Water segment designs, engineers, manufactures, and supplies various energy recovery devices (ERDs), including positive displacement isobaric ERDs and centrifugal-type ERDs; manufactures and supplies specialized high-pressure feed and circulation pumps that are used in the reverse osmosis desalination process; and provides various spare parts and repair, and field services, as well as engages in the various commissioning activities. It serves large engineering, procurement, and construction (EPC) firms; original equipment manufacturers (OEMs); and end-users and service providers. The Oil & Gas segment provides VorTeq, a solution for hydraulic fracturing applications; MTeq, a solution for mud pumping applications; and IsoBoost and IsoGen turbocharger solutions for gas processing and pipeline applications. It serves oilfield service companies, international and national oil companies, exploration and production companies, OEMs, and EPC firms. Energy Recovery, Inc. was founded in 1992 and is headquartered in San Leandro, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/08 23:57|
|End of Day Share Price||2020/07/08 00:00|
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.