Energy Recovery Inc (ERII) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Energy Recovery Inc stock (ERII) is currently trading at $10.17. Energy Recovery Inc PE ratio is 22.52. Energy Recovery Inc PS ratio (Price-to-Sales) is 3.71. Analyst consensus price target for ERII is $14.00. WallStSmart rates ERII as Hold.
- ERII PE ratio analysis and historical PE chart
- ERII PS ratio (Price-to-Sales) history and trend
- ERII intrinsic value — DCF, Graham Number, EPV models
- ERII stock price prediction 2025 2026 2027 2028 2029 2030
- ERII fair value vs current price
- ERII insider transactions and insider buying
- Is ERII undervalued or overvalued?
- Energy Recovery Inc financial analysis — revenue, earnings, cash flow
- ERII Piotroski F-Score and Altman Z-Score
- ERII analyst price target and Smart Rating
Energy Recovery Inc
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ERII Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Energy Recovery Inc (ERII)
ERII is trading near its Graham intrinsic value of $16.36, suggesting the stock is reasonably priced at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Energy Recovery Inc (ERII) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, eps growth, profit margin. Concerns around peg ratio and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Energy Recovery Inc (ERII) Key Strengths (4)
Keeps $47 of every $100 in revenue after operating costs
93.10% of shares held by major funds and institutions
Strong earnings growth at 20.10% per year
Strong profitability: $17 kept per $100 revenue
Energy Recovery Inc (ERII) Areas to Watch (6)
Revenue declining -0.30%, a shrinking business
Very expensive relative to growth, significant premium
Small-cap company with higher risk but more growth potential
Moderate profitability with room for improvement
Revenue is fairly priced at 3.71x sales
Fairly priced relative to book value
Energy Recovery Inc (ERII) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.0/10) while 6 fall into concern territory (avg 4.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Institutional Own., EPS Growth. Profitability is solid with Operating Margin at 46.50%, Profit Margin at 17.00%. Growth metrics are encouraging with EPS Growth at 20.10%.
The Bear Case
The primary concerns are Revenue Growth, PEG Ratio, Market Cap. Some valuation metrics including PEG Ratio (3.33), Price/Sales (3.71), Price/Book (2.43) suggest expensive pricing. Growth concerns include Revenue Growth at -0.30%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.00%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -0.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Institutional Own.) and negatives (Revenue Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ERII Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ERII's Price-to-Sales ratio of 3.71x trades 49% below its historical average of 7.21x (4th percentile). The current valuation is 80% below its historical high of 18.93x set in Sep 2016, and 42% above its historical low of 2.62x in Nov 2011. Over the past 12 months, the PS ratio has compressed from ~5.8x as trailing revenue scaled faster than the stock price.
Compare ERII with Competitors
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Data-driven financial summary for Energy Recovery Inc (ERII) · INDUSTRIALS › POLLUTION & TREATMENT CONTROLS
The Big Picture
Energy Recovery Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 135M with 30% decline year-over-year. Profit margins of 17.0% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 1100.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 6M in free cash flow and 7M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 30% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Sector dynamics: monitor POLLUTION & TREATMENT CONTROLS industry trends, competitive moves, and regulatory changes that could impact Energy Recovery Inc.
Bottom Line
Energy Recovery Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Energy Recovery Inc(ERII)
NASDAQ
INDUSTRIALS
POLLUTION & TREATMENT CONTROLS
USA
Energy Recovery, Inc. designs, manufactures and sells various solutions for the industrial fluid flow markets worldwide. The company is headquartered in San Leandro, California.