(ERII) Energy Recovery - Ratings and Ratios

Energy Recovery, Inc. (NASDAQ:ERII) is a global leader in energy efficiency solutions, operating through two core segments: Water and Emerging Technologies. The company specializes in designing and manufacturing advanced technologies that optimize energy use in various industries. Its product portfolio includes high, low, and ultra-high-pressure exchangers, hydraulic turbochargers, and high-pressure pumps, which are integral to seawater and brackish desalination, wastewater treatment, and industrial refrigeration systems. The company’s PX G1300 solution is particularly notable for reducing energy consumption in CO2-based refrigeration systems, aligning with global sustainability trends. Energy Recovery serves a diverse customer base, including supermarket chains, cold storage facilities, and desalination plant operators. Incorporated in 1992 and headquartered in San Leandro, California, the company has established a strong presence in regions facing water scarcity, such as the Middle East and North Africa.

From a technical perspective, ERII is trading above its 20-day and 50-day moving averages, signaling short-term bullish momentum, while its position below the 200-day moving average suggests longer-term consolidation. The average true range (ATR) of 0.61 indicates moderate volatility. Fundamentally, the company’s market cap of $853.10M reflects its mid-sized position in the market. The forward P/E of 19.80, compared to the current P/E of 38.95, indicates expectations of future growth. However, the high P/B and P/S ratios suggest a premium valuation relative to book value and revenue. With a return on equity of 10.98%, the company demonstrates solid profitability. Overall, Energy Recovery is positioned for growth in the water and energy efficiency sectors, supported by its innovative solutions and strategic market presence.