(ERII) Energy Recovery - Ratings and Ratios

Energy Recovery Inc. (ERII) is a US-based company that designs, manufactures, and sells energy-efficient technology solutions globally, operating through its Water and Emerging Technologies segments. The company provides a range of products, including pressure exchangers, hydraulic turbochargers, and high-pressure pumps, primarily used in water treatment industries such as desalination and wastewater treatment. Additionally, ERII offers solutions for carbon dioxide-based refrigeration systems and provides aftermarket services, including spare parts and repair services.

ERIIs product portfolio is marketed under various brands to diverse customers, including supermarket chains, cold storage facilities, and industrial users, as well as desalination plant owners and operators. With a history dating back to 1992, the company is headquartered in San Leandro, California, and has established itself as a player in the industrial machinery and supplies industry.

Analyzing ERIIs technical data, the stock is currently trading at $12.27, below its 20-day, 50-day, and 200-day simple moving averages (SMA) of $12.45, $13.41, and $15.46, respectively. The Average True Range (ATR) is $0.40, indicating a relatively moderate level of price volatility. Given the current price action and the stocks 52-week high and low of $19.93 and $11.37, respectively, it appears that ERII is in a downtrend.

From a fundamental perspective, ERII has a market capitalization of $691.05 million, a price-to-earnings (P/E) ratio of 35.22, and a forward P/E ratio of 19.27. The companys return on equity (RoE) stands at 9.96%. Considering these metrics, ERIIs valuation appears relatively high compared to its earnings. However, the forward P/E ratio suggests that the market expects earnings growth in the future.

Forecasting ERIIs future performance, we can expect the stock to face challenges in the short term due to its current downtrend and relatively high valuation. However, if the company can deliver on its expected earnings growth, the stock may rebound. Based on the technical data, a potential support level is around $11.37, while resistance is at $19.93. A break above the 200-day SMA of $15.46 could be a positive indicator. With a P/E ratio of 35.22 and an RoE of 9.96%, ERIIs stock may be expected to trade in a range between $13 and $16 in the next 6-12 months, assuming stable earnings growth and no significant changes in market sentiment.