A Business at a Glance
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Energy Recovery, Inc.
ERII
$397M
Mkt Cap
$7.27
-1.49%
Energy Recovery, Inc. (the “Company”, “Energy Recovery”, “we”, “our” and “us”) designs and manufactures world-class energy-saving technology for critical infrastructure that communities rely on every day, driving a more resilient and sustainable future. Grounded in more than 30 years of leadership in the desalination industry, today we use our proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. We have been incorporated in the state of Delaware since 2001. Our corporate headquarters, principal research and development (“R&D”), and manufacturing facility is located in San Leandro, California. In addition, we have manufacturing and warehouse space in Tracy, California. We have a global direct sales team and on-site technical support staff to service customers in the United States of America (the “U.S.”), Europe, North, South and Latin America, the Middle East, Northern Africa, and Asia.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 137M | 135M | 145M | 128M | 126M | 104M |
| Net Income | 21M | 23M | 23M | 22M | 24M | 14M |
| EPS | $0.39 | $0.42 | $0.40 | $0.37 | $0.42 | $0.24 |
| Free Cash Flow | 27M | 17M | 19M | 23M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 30M | 44M | 50M | 58M | 75M | 87M | 119M | 104M | 126M | 128M | 145M | 135M | 137M |
| Gross Margin | 54.9% | 56.2% | 64.1% | 67.2% | N/A | N/A | N/A | 68.6% | 69.6% | 67.8% | 66.9% | 65.1% | 63.1% |
| R&D | 9.7M | 7.7M | 10M | 13M | 17M | 23M | 23M | 20M | 18M | 17M | 16M | 13M | 13M |
| SG&A | 14M | 20M | 17M | 17M | 21M | 23M | 26M | 25M | 28M | 29M | 33M | 30M | 28M |
| EBIT | -18M | -12M | 3.4M | 9.2M | 10.0M | 10M | 31M | 14M | 25M | 19M | 20M | 24M | 22M |
| Op. Margin | -60.7% | -27.0% | 6.9% | 15.9% | 13.4% | 11.9% | 26.3% | 13.3% | 19.8% | 14.8% | 13.6% | 17.7% | 15.8% |
| Net Income | -19M | -12M | 3.7M | 18M | 22M | 11M | 26M | 14M | 24M | 22M | 23M | 23M | 21M |
| Net Margin | -61.5% | -26.6% | 7.5% | 31.6% | 29.6% | 12.6% | 22.2% | 13.7% | 19.1% | 16.8% | 15.9% | 17.0% | 15.1% |
| Non-Recurring | -38K | 0 | 0 | 0 | -408K | -389K | 0 | 0 | 0 | 0 | 2.5M | 2.8M | 1.3M |
| Returns on Capital | |||||||||||||
| ROIC | -23.9% | -17.3% | 5.2% | 11.5% | 77.7% | 22.6% | 47.7% | 18.9% | 25.0% | 16.4% | 13.9% | 14.6% | 18.1% |
| ROE | -23.9% | -17.3% | 5.6% | 22.9% | 21.5% | 8.8% | 17.2% | 8.1% | 13.2% | 10.6% | 10.7% | 11.0% | 11.2% |
| ROA | -19.9% | -9.8% | 2.5% | 11.7% | 12.8% | 5.9% | 13.4% | 6.8% | 11.2% | 9.2% | 9.3% | 9.7% | 9.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -3.7M | 69M | 5.0M | 2.9M | 7.6M | 5.3M | 17M | 14M | 13M | 26M | 21M | 19M | 29M |
| Free Cash Flow | -6.3M | 68M | 3.9M | -4.5M | 2.3M | -2.1M | 10M | 6.8M | 8.4M | 23M | 19M | 17M | 27M |
| Owner Earnings | -9.8M | 61M | -2.0M | -4.9M | -1.5M | -4.8M | 8.2M | 3.0M | 1.4M | 14M | 6.2M | 7.3M | 18M |
| CapEx | 2.6M | 572K | 1.1M | 7.4M | 5.2M | 7.4M | 6.8M | 6.7M | 4.2M | 2.6M | 1.3M | 1.3M | 2.0M |
| Maint. CapEx | 4.0M | 3.8M | 3.7M | 3.7M | 3.9M | 4.4M | 3.9M | 4.5M | 4.8M | 4.1M | 4.0M | 3.8M | 3.8M |
| Growth CapEx | 0 | 0 | 0 | 3.7M | 1.4M | 3.0M | 2.9M | 2.2M | 0 | 0 | 0 | 0 | 0 |
| D&A | 4.0M | 3.8M | 3.7M | 3.7M | 3.9M | 4.4M | 3.9M | 4.5M | 4.8M | 4.1M | 4.0M | 3.8M | 3.8M |
| CapEx/OCF | N/A | 0.8% | 22.4% | 254.8% | 69.2% | 140.1% | 40.2% | 49.4% | 33.5% | 9.9% | 6.3% | 7.1% | 6.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 2.8M | 0 | 9.4M | 4.3M | 10M | 0 | 0 | 23M | 27M | 0 | 50M | 36M | 42M |
| Buyback Yield | 1.1% | N/A | 1.7% | 0.9% | 2.8% | N/A | N/A | 1.8% | 2.3% | N/A | 5.9% | 4.7% | 11.0% |
| Stock-Based Comp | 2.1M | 4.1M | 3.3M | 4.1M | 5.2M | 5.7M | 4.8M | 6.1M | 6.5M | 8.0M | 10M | 7.7M | 7.7M |
| Debt Repayment | 0 | 7K | 10K | 11K | 27K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | -100M | -100M | -94M | -82M | -73M | -115M | -89M | -75M | -95M | -67M | -66M | -86M |
| Cash & Equiv. | 16M | 100M | 61M | 28M | 22M | 26M | 94M | 74M | 56M | 68M | 30M | 48M | 86M |
| Long-Term Debt | N/A | 38K | 27K | 16K | 0 | 0 | 0 | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.23 | 0.00 | 0.00 | 0.04 | 0.12 | 0.09 | 0.00 | 0.09 | 0.08 | 0.06 | 0.05 | 0.05 | 0.00 |
| Interest Coverage | N/A | -280.7 | 1142.0 | 4624.5 | 9978.0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | 70M | 64M | 68M | 92M | 113M | 136M | 172M | 179M | 185M | 220M | 210M | 206M | 184M |
| Total Assets | 86M | 152M | 149M | 164M | 180M | 189M | 204M | 214M | 217M | 253M | 243M | 232M | 209M |
| Total Liabilities | 16M | 88M | 84M | 73M | 66M | 53M | 33M | 35M | 32M | 33M | 33M | 25M | 25M |
| Intangibles | 3.2M | 2.5M | 1.9M | 1.3M | 640K | 65K | 49K | 37K | 0 | N/A | N/A | N/A | N/A |
| Retained Earnings | -48M | -59M | -58M | -37M | -14M | -3.6M | 23M | 37M | 61M | 83M | 106M | 129M | 116M |
| Working Capital | 42M | 108M | 105M | 96M | 93M | 85M | 127M | 132M | 140M | 164M | 150M | 164M | 144M |
| Current Assets | 53M | 124M | 122M | 126M | 120M | 113M | 143M | 152M | 158M | 185M | 174M | 181M | 161M |
| Current Liabilities | 12M | 16M | 17M | 30M | 27M | 28M | 16M | 20M | 18M | 21M | 23M | 17M | 17M |
| Per Share Data | |||||||||||||
| EPS | -0.36 | -0.22 | 0.07 | 0.33 | 0.40 | 0.19 | 0.47 | 0.24 | 0.42 | 0.37 | 0.40 | 0.42 | 0.39 |
| Owner EPS | -0.19 | 1.16 | -0.04 | -0.09 | -0.03 | -0.08 | 0.15 | 0.05 | 0.02 | 0.24 | 0.11 | 0.13 | 0.34 |
| Book Value | 1.35 | 1.22 | 1.29 | 1.65 | 2.05 | 2.37 | 3.06 | 3.01 | 3.24 | 3.78 | 3.64 | 3.77 | 3.54 |
| Cash Flow/Share | -0.07 | 1.31 | 0.09 | 0.05 | 0.14 | 0.09 | 0.30 | 0.23 | 0.22 | 0.45 | 0.36 | 0.34 | 0.47 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 52.0M | 52.9M | 53.1M | 55.6M | 55.2M | 57.4M | 56.1M | 59.5M | 57.3M | 58.1M | 57.6M | 54.7M | 52.1M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | 149.9 | 27.1 | 16.3 | 52.5 | 29.3 | 88.9 | 48.5 | 51.2 | 37.1 | 33.0 | 18.8 |
| P/FCF | N/A | 5.5 | 144.6 | N/A | 154.8 | N/A | 76.5 | 185.4 | 138.9 | 46.8 | 44.5 | 43.5 | 13.9 |
| EV/EBIT | N/A | N/A | 133.4 | 43.1 | 26.6 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 13.5 |
| Price/Book | 3.8 | 5.8 | 8.1 | 5.4 | 3.2 | 4.2 | 4.5 | 7.1 | 6.3 | 5.0 | 4.1 | 3.7 | 2.1 |
| Price/Sales | 8.1 | 4.6 | 11.2 | 8.0 | 6.2 | 6.1 | 4.2 | 11.0 | 9.5 | 10.4 | 6.2 | 5.9 | 2.8 |
| FCF Yield | -2.4% | 18.2% | 0.7% | -0.9% | 0.6% | -0.4% | 1.3% | 0.5% | 0.7% | 2.1% | 2.2% | 2.3% | 7.2% |
| Market Cap | 267M | 376M | 557M | 497M | 361M | 573M | 772M | 1.3B | 1.2B | 1.1B | 856M | 759M | 379M |
| Avg. Price | 4.74 | 3.80 | 10.53 | 8.40 | 8.32 | 9.26 | 8.98 | 19.16 | 20.84 | 23.02 | 15.67 | 14.51 | 7.27 |
| Year-End Price | 5.14 | 7.10 | 10.49 | 8.93 | 6.53 | 9.97 | 13.75 | 21.34 | 20.37 | 18.93 | 14.86 | 13.88 | 7.27 |
Energy Recovery, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Energy Recovery, Inc. trades at 17.3x trailing earnings, compared to its 15-year median P/E of 37.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 22.0x vs a median of 45.7x. The company's 5-year average ROIC is 17.7% with a gross margin of 67.6%. Total shareholder yield (buybacks) is 11.0%. At current prices, the estimated annualized return to fair value is +46.0%.
Energy Recovery, Inc. (ERII) has a current P/E ratio of 17.3, compared to its historical median P/E of 37.1. The stock is currently considered Fair based on its historical valuation range.
Energy Recovery, Inc. (ERII) has a 5-year average return on invested capital (ROIC) of 17.7%. This indicates strong capital allocation and a potential competitive advantage.
Energy Recovery, Inc. (ERII) has a market capitalization of $379M. It is classified as a small-cap stock.
Energy Recovery, Inc. (ERII) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 11.04%.
Based on historical P/E analysis, Energy Recovery, Inc. (ERII) appears fair. The current P/E of 17.3 is 53% below its historical median of 37.1. The estimated fair value CAGR (P/E method) is 0.1%.
Energy Recovery, Inc. (ERII) operates in the Special Industry Machinery, Nec industry, within the Industrials sector.
Energy Recovery, Inc. (ERII) reported annual revenue of $135 million in its most recent fiscal year, based on SEC EDGAR filings.
| 8.4M |
| 6.8M |
| ROIC | 18.1% | 14.6% | 13.9% | 16.4% | 25.0% | 18.9% |
|---|
| Gross Margin | 63.1% | 65.1% | 66.9% | 67.8% | 69.6% | 68.6% |
|---|
| Debt/Equity | 0.00 | 0.05 | 0.05 | 0.06 | 0.08 | 0.09 |
|---|
| Dividends/Share | $0.00 | - | - | - | - | - |
|---|
| Operating Income | 22M | 24M | 20M | 19M | 25M | 14M |
|---|
| Operating Margin | 15.8% | 17.7% | 13.6% | 14.8% | 19.8% | 13.3% |
|---|
| ROE | 11.2% | 11.0% | 10.7% | 10.6% | 13.2% | 8.1% |
|---|
| Shares Outstanding | 52M | 55M | 58M | 58M | 57M | 59M |
|---|
Energy Recovery, Inc. (ERII) has a net profit margin of 17.0%. This is a healthy margin.
Energy Recovery, Inc. (ERII) generated $17 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Energy Recovery, Inc. (ERII) has a debt-to-equity ratio of 0.05. This indicates a conservatively financed balance sheet.
Energy Recovery, Inc. (ERII) reported earnings per share (EPS) of $0.42 in its most recent fiscal year.
Energy Recovery, Inc. (ERII) has a return on equity (ROE) of 11.0%. This indicates moderate shareholder returns.
Energy Recovery, Inc. (ERII) has a 5-year average gross margin of 67.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for Energy Recovery, Inc. (ERII), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Energy Recovery, Inc. (ERII) has a book value per share of $3.77, based on its most recent annual SEC filing.