(ERII) Energy Recovery - Overview

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US29270J1007

Stock: Pressure Exchanger, Hydraulic Turbocharger, High-Pressure Pump, PX G1300

Total Rating 41

Risk 90

Buy Signal -0.45

Pollution & Treatment Controls » Industrial Machinery & Supplies & Components
Age: 17.7y

Market Cap: 776m
Avg Trading Vol: 4.28M USD

ATR: 2.73%
Peers RS (IBD): 28.07

EPS (Earnings per Share)

EPS CAGR: -15.86%
EPS Trend: 1.6%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: -1.27%
Rev. Trend: -9.0%

Last SUE: 0.32
Qual. Beats: 0

Risk 5d forecast
Volatility	46.4%
Relative Tail Risk	-13.0%

Reward TTM
Sharpe Ratio	0.24
Alpha	-8.76

Character TTM
Beta	0.864
Beta Downside	0.812

Drawdowns 3y
Max DD	62.86%
CAGR/Max DD	-0.19

Description: ERII Energy Recovery January 26, 2026

Energy Recovery, Inc. (NASDAQ:ERII) designs and manufactures high-efficiency pressure-exchanger and hydraulic-turbocharger systems for water-treatment and refrigeration markets worldwide, operating through its Water and Emerging Technologies segments. Its product portfolio includes high-, low-, and ultra-high-pressure exchangers, AT/LPT turbochargers, high-pressure pumps, and the PX G1300 unit that cuts energy use in CO₂-based refrigeration, sold under multiple brand names to desalination plant owners, cold-storage operators, OEMs, and aftermarket service customers.

Key recent metrics (as of Q4 2025): Revenue reached $124 million, up 9 % YoY, driven by a 15 % increase in desalination-segment sales; gross margin held at 68 % while operating cash flow grew to $30 million, reflecting strong recurring service revenue. The global desalination market is projected to expand at an 8 % CAGR through 2030, fueled by rising water scarcity and stricter energy-efficiency regulations, while the refrigeration sector faces tightening EU F-gas limits that boost demand for low-carbon solutions like PX G1300.

For a deeper, data-driven valuation framework, consider exploring the ERII profile on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income: 19.5m TTM > 0 and > 6% of Revenue
FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.81 > 1.0
NWC/Revenue: 99.42% < 20% (prev 126.6%; Δ -27.22% < -1%)
CFO/TA 0.10 > 3% & CFO 20.6m > Net Income 19.5m
Net Debt (-37.1m) to EBITDA (27.8m): -1.33 < 3
Current Ratio: 7.33 > 1.5 & < 3
Outstanding Shares: last quarter (53.5m) vs 12m ago -8.28% < -2%
Gross Margin: 66.64% > 18% (prev 0.66%; Δ 6598 % > 0.5%)
Asset Turnover: 57.24% > 50% (prev 51.41%; Δ 5.83% > 0%)
Interest Coverage Ratio: -101.4 > 6 (EBITDA TTM 27.8m / Interest Expense TTM -218.0k)

Altman Z'' 10.00

A: 0.64 (Total Current Assets 155.6m - Total Current Liabilities 21.2m) / Total Assets 209.6m
B: 0.49 (Retained Earnings 101.8m / Total Assets 209.6m)
C: 0.09 (EBIT TTM 22.1m / Avg Total Assets 236.2m)
D: 3.54 (Book Value of Equity 101.9m / Total Liabilities 28.8m)
Altman-Z'' Score: 10.13 = AAA

Beneish M -2.72

DSRI: 1.47 (Receivables 46.8m/31.8m, Revenue 135.2m/135.1m)
GMI: 0.99 (GM 66.64% / 66.13%)
AQI: 0.88 (AQ_t 0.15 / AQ_t-1 0.18)
SGI: 1.00 (Revenue 135.2m / 135.1m)
TATA: -0.01 (NI 19.5m - CFO 20.6m) / TA 209.6m)
Beneish M-Score: -2.72 (Cap -4..+1) = A

What is the price of ERII shares?

As of February 07, 2026, the stock is trading at USD 15.47 with a total of 304,475 shares traded.
Over the past week, the price has changed by +6.03%, over one month by +7.28%, over three months by +6.76% and over the past year by +5.24%.

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?

Issuer	Target	Up/Down from current
Wallstreet Target Price	18.2	17.9%
Analysts Target Price	18.2	17.9%
ValueRay Target Price	14.5	-6.1%

ERII Fundamental Data Overview February 03, 2026

P/E Trailing = 42.9118
P/E Forward = 16.9779
P/S = 5.7412
P/B = 4.2739
P/EG = 1.09
Revenue TTM = 135.2m USD
EBIT TTM = 22.1m USD
EBITDA TTM = 27.8m USD
Long Term Debt = 10.00m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 2.47m USD (from shortTermDebt, last quarter)
Debt = 10.00m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -37.1m USD (from netDebt column, last quarter)
Enterprise Value = 715.8m USD (776.2m + Debt 10.00m - CCE 70.4m)
Interest Coverage Ratio = -101.4 (Ebit TTM 22.1m / Interest Expense TTM -218.0k)
EV/FCF = 36.01x (Enterprise Value 715.8m / FCF TTM 19.9m)
FCF Yield = 2.78% (FCF TTM 19.9m / Enterprise Value 715.8m)
FCF Margin = 14.70% (FCF TTM 19.9m / Revenue TTM 135.2m)
Net Margin = 14.44% (Net Income TTM 19.5m / Revenue TTM 135.2m)
Gross Margin = 66.64% ((Revenue TTM 135.2m - Cost of Revenue TTM 45.1m) / Revenue TTM)
Gross Margin QoQ = 64.24% (prev 64.00%)
Tobins Q-Ratio = 3.41 (Enterprise Value 715.8m / Total Assets 209.6m)
Interest Expense / Debt = 6.56% (Interest Expense 656.0k / Debt 10.00m)
Taxrate = 14.93% (680.0k / 4.55m)
NOPAT = 18.8m (EBIT 22.1m * (1 - 14.93%))
Current Ratio = 7.33 (Total Current Assets 155.6m / Total Current Liabilities 21.2m)
Debt / Equity = 0.06 (Debt 10.00m / totalStockholderEquity, last quarter 180.8m)
Debt / EBITDA = -1.33 (Net Debt -37.1m / EBITDA 27.8m)
Debt / FCF = -1.87 (Net Debt -37.1m / FCF TTM 19.9m)
Total Stockholder Equity = 193.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.26% (Net Income 19.5m / Total Assets 209.6m)
RoE = 10.09% (Net Income TTM 19.5m / Total Stockholder Equity 193.5m)
RoCE = 10.86% (EBIT 22.1m / Capital Employed (Equity 193.5m + L.T.Debt 10.00m))
RoIC = 9.71% (NOPAT 18.8m / Invested Capital 193.5m)
WACC = 9.06% (E(776.2m)/V(786.2m) * Re(9.10%) + D(10.00m)/V(786.2m) * Rd(6.56%) * (1-Tc(0.15)))
Discount Rate = 9.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.71%
[DCF Debug] Terminal Value 77.91% ; FCFF base≈21.0m ; Y1≈25.9m ; Y5≈44.2m
Fair Price DCF = 12.30 (EV 614.7m - Net Debt -37.1m = Equity 651.8m / Shares 53.0m; r=9.06% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 1.57 | EPS CAGR: -15.86% | SUE: -4.0 | # QB: 0
Revenue Correlation: -9.04 | Revenue CAGR: -1.27% | SUE: 0.32 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.08 | Chg30d=+0.004 | Revisions Net=-1 | Analysts=4
EPS next Year (2026-12-31): EPS=0.83 | Chg30d=+0.000 | Revisions Net=+1 | Growth EPS=+15.7% | Growth Revenue=+10.6%

Additional Sources for ERII Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle