ERII Stock Analysis: Energy Recovery | NASDAQ

Pollution & Treatment Controls | NASDAQ, USA | Market Cap: 454m USD | 12M Return: -34.8% | Charts, Fundamentals & Technical Analysis

Pressure Exchangers, Hydraulic Turbochargers, High-Pressure Pumps, Refrigeration
Total Rating 36
Safety 89
Buy Signal -0.97
Pollution & Treatment Controls
Industry Rotation: -4.2
Market Cap: 454M
Avg Turnover: 8.39M
Risk 3d forecast
Volatility50.5%
VaR 5th Pctl7.51%
VaR vs Median-7.19%
Reward TTM
Sharpe Ratio-0.51
Rel. Str. IBD2.7
Rel. Str. Peer Group4.4
Character TTM
Beta0.619
Beta Downside0.660
Hurst Exponent0.507
Drawdowns 3y
Max DD74.13%
CAGR/Max DD-0.45
CAGR/Mean DD-0.68
EPS (Earnings per Share) EPS (Earnings per Share) of ERII over the last years for every Quarter: "2021-06": 0.02, "2021-09": 0.02, "2021-12": 0.09, "2022-03": 0.14, "2022-06": -0.04, "2022-09": 0.09, "2022-12": 0.24, "2023-03": -0.11, "2023-06": -0.03, "2023-09": 0.17, "2023-12": 0.34, "2024-03": -0.08, "2024-06": 0.09, "2024-09": 0.21, "2024-12": 0.5, "2025-03": -0.14, "2025-06": 0.07, "2025-09": 0.07, "2025-12": 0.53, "2026-03": -0.11,
EPS CAGR: 38.69%
EPS Trend: 75.2%
Last SUE: -0.39
Qual. Beats: 0
Revenue Revenue of ERII over the last years for every Quarter: 2021-06: 20.607, 2021-09: 20.781, 2021-12: 33.576, 2022-03: 32.546, 2022-06: 20.292, 2022-09: 30.462, 2022-12: 42.291, 2023-03: 13.401, 2023-06: 20.723, 2023-09: 37.036, 2023-12: 57.189, 2024-03: 12.09, 2024-06: 27.199, 2024-09: 38.584, 2024-12: 67.075, 2025-03: 8.065, 2025-06: 28.051, 2025-09: 32, 2025-12: 66.586, 2026-03: 9.706,
Rev. CAGR: 7.80%
Rev. Trend: 74.8%
Last SUE: 0.24
Qual. Beats: 0

Warnings

Earnings Expected To Drop (P/E To P/E Forward)
Below Avwap Earnings
Below Sma 200d

Tailwinds

No distinct edge detected

Seasonality 10.5 years of data

Jan -1.3% 14
Feb -1.9% 14
Mar +2.5% 28
Apr +5.5% 11
May -5.8% 27
Jun +2.1% 27
Jul +2.4% 24
Aug +1.0% 8
Sep -5.5% 22
Oct +1.3% 22
Nov +0.2% 5
Dec -5.2% 42

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: ERII Energy Recovery

Energy Recovery, Inc. (NASDAQ: ERII) is a San Leandro, California-based industrial technology company founded in 1992 that designs and manufactures energy efficiency solutions used primarily in water treatment and industrial refrigeration. The company operates through two segments, Water and Emerging Technologies, selling high, low, and ultra-high-pressure exchangers, hydraulic turbochargers, and high-pressure pumps to desalination plants, wastewater treatment facilities, and industrial CO2 refrigeration operators across the United States, the Americas, the Middle East, Northern Africa, Asia, and Europe. Its PX Pressure Exchanger technology is designed to capture and reuse pressure energy from reverse osmosis streams, addressing the fact that seawater desalination is one of the most energy-intensive water treatment processes. ERII earns revenue from both initial equipment sales to OEMs, supermarket chains, and cold storage operators, and from aftermarket spare parts and service contracts with plant owners and operators.

Headlines to Watch Out For
  • Seawater desalination demand grows amid global water scarcity
  • CO2 refrigeration adoption accelerates under HFC phase-down regulations
  • Middle East mega-project pipeline anchors Water segment backlog
Piotroski VR-10 (Strict) 5.5
Net Income: 20.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.13 > 0.02 and ΔFCF/TA 2.34 > 1.0
NWC/Revenue: 105.4% < 20% (prev 96.62%; Δ 8.79% < -1%)
CFO/TA 0.14 > 3% & CFO 29.1m > Net Income 20.6m
Net Debt (-77.3m) to EBITDA (36.6m): -2.11 < 3
Current Ratio: 9.28 > 1.5 & < 3
Outstanding Shares: last quarter (52.7m) vs 12m ago -4.08% < -2%
Gross Margin: 64.29% > 18% (prev 66.88%; Δ -2.59% > 0.5%)
Asset Turnover: 62.78% > 50% (prev 62.52%; Δ 0.25% > 0%)
Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM)
Altman Z'' 10.00
A: 0.69 (Total Current Assets 161.1m - Total Current Liabilities 17.4m) / Total Assets 209.0m
B: 0.56 (Retained Earnings 116.4m / Total Assets 209.0m)
C: 0.12 (EBIT TTM 25.1m / Avg Total Assets 217.2m)
D: 7.46 (Book Value of Equity 184.3m / Total Liabilities 24.7m)
Altman-Z'' = 14.94 = AAA
Beneish M -2.99
DSRI: 1.30 (Receivables 40.6m/32.4m, Revenue 136.3m/140.9m)
GMI: 1.04 (GM 66.88% / 64.29%)
AQI: 0.64 (AQ_t 0.13 / AQ_t-1 0.21)
SGI: 0.97 (Revenue 136.3m / 140.9m)
TATA: -0.04 (NI 20.6m - CFO 29.1m) / TA 209.0m)
Beneish M = -2.99 (Cap -4..+1) = A
What is the price of ERII shares?

As of July 11, 2026, the stock is trading at USD 8.73 with a total of 646,833 shares traded. Over the past week, the price has changed by -1.24%, over one month by +10.23%, over three months by -21.42% and over the past year by -34.75%.

Current recommended Stop Loss: 8.00 (which is 8.4% or 1.8 ATR below the current price).

Is ERII a buy, sell or hold?

Energy Recovery has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy ERII.

  • StrongBuy: 2
  • Buy: 0
  • Hold: 1
  • Sell: 0
  • StrongSell: 0

What are the forecasts/targets for the ERII price?
Analysts Target Price 11 26%
Energy Recovery (ERII) - Fundamental Data Overview as of 09 July 2026
Market Cap USD = 453.6m (453.6m USD * 1.0 USD.USD)
P/E Trailing = 24.4444
P/E Forward = 126.5823
P/S = 3.32
P/B = 2.4754
P/EG = 3.325
Revenue TTM = 136.3m USD
EBIT TTM = 25.1m USD
EBITDA TTM = 36.6m USD
Long Term Debt = 6.25m USD (estimated: total debt 8.85m - short term 2.59m)
Short Term Debt = 2.59m USD (from shortTermDebt, last quarter)
Debt = 8.85m USD (from shortLongTermDebtTotal, last quarter) (leases 8.85m already included)
Net Debt = -77.3m USD (calculated: Debt 8.85m - CCE 86.2m)
Enterprise Value = 376.3m USD (453.6m + Debt 8.85m - CCE 86.2m)
 Interest Coverage Ratio = unknown (Ebit TTM 25.1m / Interest Expense TTM 0.0)
 EV/FCF = 13.85x (Enterprise Value 376.3m / FCF TTM 27.2m)
FCF Yield = 7.22% (FCF TTM 27.2m / Enterprise Value 376.3m)
FCF Margin = 19.93% (FCF TTM 27.2m / Revenue TTM 136.3m)
Net Margin = 15.10% (Net Income TTM 20.6m / Revenue TTM 136.3m)
Gross Margin = 64.29% ((Revenue TTM 136.3m - Cost of Revenue TTM 48.7m) / Revenue TTM)
Gross Margin QoQ = 44.65% (prev 67.29%)
Tobins Q-Ratio = 1.80 (Enterprise Value 376.3m / Total Assets 209.0m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 8.85m)
Taxrate = 17.81% (4.46m / 25.1m)
NOPAT = 20.6m (EBIT 25.1m * (1 - 17.81%))
Current Ratio = 9.28 (Total Current Assets 161.1m / Total Current Liabilities 17.4m)
Debt / Equity = 0.05 (Debt 8.85m / totalStockholderEquity, last quarter 184.3m)
Debt / EBITDA = -2.11 (Net Debt -77.3m / EBITDA 36.6m)
Debt / FCF = -2.84 (Net Debt -77.3m / FCF TTM 27.2m)
Total Stockholder Equity = 189.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 9.48% (Net Income 20.6m / Total Assets 209.0m)
RoE = 10.89% (Net Income TTM 20.6m / Total Stockholder Equity 189.1m)
RoCE = 12.82% (EBIT 25.1m / Capital Employed (Equity 189.1m + L.T.Debt 6.25m))
RoIC = 10.99% (NOPAT 20.6m / Invested Capital 187.4m)
WACC = 8.00% (E(453.6m)/V(462.4m) * Re(8.16%) + D(8.85m)/V(462.4m) * Rd(0.0%) * (1-Tc(0.18)))
Discount Rate = 8.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -77.78 | Cagr: -3.96%
[DCF] Terminal Value 77.67% ; FCFF base≈25.9m ; Y1≈29.2m ; Y5≈41.2m
[DCF] Fair Price = 13.58 (EV 622.7m - Net Debt -77.3m = Equity 700.0m / Shares 51.5m; r=8.35% [WACC [floored]]; 5y FCF grow 13.05% → 2.50% )
EPS Correlation: 75.18 | EPS CAGR: 38.69% | SUE: -0.39 | # QB: 0
Revenue Correlation: 74.85 | Revenue CAGR: 7.80% | SUE: 0.24 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.04 | Chg30d=-140.37% | Revisions=-17% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.01 | Chg30d=-89.53% | Revisions=-50% | Analysts=2
EPS current Year (2026-12-31): EPS=0.06 | Chg30d=-90.77% | Revisions=-50% | GrowthEPS=-89.7% | GrowthRev=-31.1%
EPS next Year (2027-12-31): EPS=0.54 | Chg30d=-42.27% | Revisions=-50% | GrowthEPS=+791.7% | GrowthRev=+29.2%
[Analyst] Revisions Ratio: -67% (up=1, down=11)