Energy Recovery
Market Cap
US$816.3m
Last Updated
2021/01/25 23:13 UTC
Data Sources
Company Financials +
Executive Summary
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and markets various solutions for industrial fluid flow markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
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
Stable Share Price: ERII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ERII's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
ERII
-0.02%
US Machinery
2.6%
US Market
1 Year Return
40.6%
ERII
28.5%
US Machinery
26.0%
US Market
Return vs Industry: ERII exceeded the US Machinery industry which returned 28.5% over the past year.
Return vs Market: ERII exceeded the US Market which returned 26% over the past year.
Shareholder returns
| ERII | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -0.02% | 2.6% |
| 30 Day | 4.8% | 5.1% | 5.1% |
| 90 Day | 56.1% | 20.1% | 17.1% |
| 1 Year | 40.6%40.6% | 31.7%28.5% | 28.9%26.0% |
| 3 Year | 80.6%80.6% | 28.5%19.4% | 46.3%36.6% |
| 5 Year | 138.3%138.3% | 166.5%137.0% | 126.9%101.6% |
Long-Term 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
15 hours ago | Simply Wall St
Is There More To The Story Than Energy Recovery's (NASDAQ:ERII) Earnings Growth?1 week ago | Simply Wall St
What Is The Ownership Structure Like For Energy Recovery, Inc. (NASDAQ:ERII)?3 weeks ago | Simply Wall St
Is Energy Recovery, Inc.'s (NASDAQ:ERII) Latest Stock Performance A Reflection Of Its Financial Health?Valuation
Is Energy Recovery undervalued compared to its fair value and its price relative to the market?
11.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERII ($14.3) is trading below our estimate of fair value ($16.07)
Significantly Below Fair Value: ERII is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ERII is poor value based on its PE Ratio (35.5x) compared to the US Machinery industry average (32.6x).
PE vs Market: ERII is poor value based on its PE Ratio (35.5x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: ERII is poor value based on its PEG Ratio (11.6x)
Price to Book Ratio
PB vs Industry: ERII is overvalued based on its PB Ratio (4.9x) compared to the US Machinery industry average (3x).
Next Steps
Future Growth
How is Energy Recovery forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERII's forecast earnings growth (3.1% per year) is above the savings rate (2%).
Earnings vs Market: ERII's earnings (3.1% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: ERII's earnings are forecast to grow, but not significantly.
Revenue vs Market: ERII's revenue (2.8% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: ERII's revenue (2.8% 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 (11.3%).
Next Steps
Past Performance
How has Energy Recovery performed over the past 5 years?
45.9%
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 (19.9%) are higher than last year (16.3%).
Past Earnings Growth Analysis
Earnings Trend: ERII has become profitable over the past 5 years, growing earnings by 45.9% per year.
Accelerating Growth: ERII's earnings growth over the past year (60.5%) exceeds its 5-year average (45.9% per year).
Earnings vs Industry: ERII earnings growth over the past year (60.5%) exceeded the Machinery industry -15.5%.
Return on Equity
High ROE: ERII's Return on Equity (13.6%) is considered low.
Next Steps
Financial Health
How is Energy Recovery's financial position?
Financial Position Analysis
Short Term Liabilities: ERII's short term assets ($131.2M) exceed its short term liabilities ($13.0M).
Long Term Liabilities: ERII's short term assets ($131.2M) exceed its long term liabilities ($17.6M).
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 0.08%.
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
Next Steps
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?
2.0yrs
Average management tenure
CEO
Robert, Bob Mao (76 yo)
1.17yrs
Tenure
US$569,542
Compensation
Mr. Yu-Lang Mao, also known as Robert & Bob, serves as the President & Chief Executive Officer of Energy Recovery, Inc. since May 5, 2020. He serves as an Advisor at PAC-LINK Management Corp. Mr. Mao serve...
CEO Compensation Analysis
Compensation vs Market: Robert, Bob's total compensation ($USD569.54K) is below average for companies of similar size in the US market ($USD2.37M).
Compensation vs Earnings: Robert, Bob's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$569.54k | 0.39% $ 3.2m | |
| Chief Financial Officer | 2.42yrs | US$847.70k | 0.0013% $ 10.2k | |
| Chief Technology Officer | 3.17yrs | US$719.91k | 0.044% $ 356.3k | |
| Senior Vice President of Water | 1yr | US$784.56k | 0.0028% $ 22.9k | |
| Vice President of Operations | 6yrs | US$783.35k | no data | |
| Senior VP of Corporate Development & Operations | 1yr | no data | 0.0038% $ 31.1k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 4.58yrs | no data | 0.037% $ 302.8k | |
| Vice President of Human Resources | 2yrs | no data | no data | |
| Corporate Controller | 2yrs | no data | no data |
2.0yrs
Average Tenure
48yo
Average Age
Experienced Management: ERII's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$569.54k | 0.39% $ 3.2m | |
| Independent Director | 5.58yrs | US$135.00k | 0.032% $ 261.9k | |
| Independent Director | 25.42yrs | US$145.00k | 1.95% $ 15.9m | |
| Independent Director | 5.92yrs | US$140.00k | 0.78% $ 6.4m | |
| Independent Director | 5.92yrs | US$150.00k | 0.018% $ 145.5k | |
| Independent Director | 4.33yrs | US$135.00k | 0% $ 0 | |
| Lead Independent Director | 0.67yr | US$95.23k | 0% $ 0 |
5.6yrs
Average Tenure
65yo
Average Age
Experienced Board: ERII's board of directors are considered experienced (5.6 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 company bio, 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$816.259m
- Shares outstanding: 56.10m
- Website: https://www.energyrecovery.com
Number of Employees
Location
- Energy Recovery, Inc.
- 1717 Doolittle Drive
- San Leandro
- California
- 94577
- United States
Listings
| 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 |
Biography
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 se...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:13 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.