Energy Recovery, Inc. (ERII) - Comprehensive Stock Analysis & Investment Research
Deep dive into Energy Recovery, Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
Energy Recovery, Inc. Investment Summary
When evaluating whether Energy Recovery, Inc. (ERII) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
Energy Recovery, Inc. (ERII) operates within the Technology sector, specifically in the Special Industry Machinery, NEC industry. The company employs approximately 188 people. With a market capitalization of $551 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
Our comprehensive financial analysis covers Energy Recovery, Inc.'s revenue, profitability metrics, balance sheet strength, and cash flow generation...
AI Price Predictions
Get AI-powered 7-day, 30-day and 90-day price forecasts for Energy Recovery, Inc. along with confidence scores and detailed analysis...
Investment Considerations
Expert analysis of whether Energy Recovery, Inc. is suitable for your investment objectives, risk tolerance, and time horizon...
Corporate Identity
Energy Recovery, Inc. (Stock Symbol: ERII) is a prominent company operating within the Technology sector, with a specific focus on the Special Industry Machinery, NEC industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
Detailed information about Energy Recovery, Inc.'s leadership team, workforce size, and organizational structure...
Market Classification
Market capitalization analysis and stock classification (mega-cap, large-cap, mid-cap, small-cap) for Energy Recovery, Inc....
Sector & Industry Analysis
In-depth sector dynamics and industry context for Energy Recovery, Inc....
Revenue & Growth Analysis
Energy Recovery, Inc. generates annual revenues of $134 million , representing an emerging company in its growth phase.
Profitability Metrics
Net profit margin, gross margin, and operating margin analysis for Energy Recovery, Inc....
Market Valuation
P/E ratio, price-to-book, and valuation multiples for Energy Recovery, Inc....
Return Metrics
Return on equity (ROE), return on assets (ROA), and capital efficiency for Energy Recovery, Inc....
Strategic Market Position
Energy Recovery, Inc. strategically competes in the highly dynamic Special Industry Machinery, NEC marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
Energy Recovery, Inc. operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $4 million annually , with year-over-year cash flow growth of 220.2%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 67.5% gross margin which reflects exceptional pricing power and/or an asset-light business model. Gross margins at this level are typically seen in software, pharmaceuticals, or luxury goods companies where the cost of incremental production is minimal relative to selling prices. Such margins indicate significant competitive advantages protecting the company from price-based competition.
Operating margin of 12.6% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 0.50x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 8.70 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.