NASDAQ
ERII
Last Price
US $8.35
KEY FIGURES
MKT CAP
$430.4M
EPS
TTM
$0.30
PEG
TTM
N/M
P/E
TTM
28.01x
P/S
TTM
3.57x
YIELD
0.00%
GROWTH
Revenue Y/Y
Cash Flow (DCF)
Fair Value
Market $8.35
-21.20%
Default assumptions
EBITDA Multiple
Fair Value
Market $8.35
-41.56%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Energy Recovery, Inc. cash flow to debt ratio of 199.07% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial risk - Healthy cash flow growth.
Energy Recovery, Inc.'s free cash flow has decreased -9.28% from $19.22M last year to $17.44M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Energy Recovery, Inc.'s debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Energy Recovery, Inc.'s debt has decreased relative to shareholder equity from 0.05 last year to 0.05 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Energy Recovery, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Energy Recovery, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Energy Recovery, Inc.'s profit margin has decreased (-19.81%) in the last year from 15.90% to 12.75%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Energy Recovery, Inc.'s short-term assets of $181.21M exceed its short-term liabilities of $17.35M
Increasing performance - ROA.
Energy Recovery, Inc.'s return on assets of 7.76% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Energy Recovery, Inc.'s return on equity of 8.25%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Energy Recovery, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Energy Recovery, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Energy Recovery, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Energy Recovery, Inc. has a free cash flow yield of 4.05%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Energy Recovery, Inc.'s yearly earnings has decreased -0.38% since last year from $23.05M to $22.96M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Energy Recovery, Inc.'s yearly revenue has decreased -7.07% since last year from $144.95M to $134.70M, signaling decreasing performance
Increasing performance - ROIC.
ROIC 9.47% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Energy Recovery, Inc.'s 3-year revenue CAGR of 2.36% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Energy Recovery, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Energy Recovery, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Energy Recovery, Inc. is overvalued relative to its fair value price of 6.58 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Energy Recovery, Inc. has an earnings yield of 3.57%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Energy Recovery, Inc. is overvalued relative to its fair value price of 4.88 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Energy Recovery, Inc. has an EV/EBITDA ratio of 12.49x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Energy Recovery, Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
Energy Recovery, Inc. has a price-to-book ratio of 2.49x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Energy Recovery, Inc. has a price-to-sales ratio of 3.57x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
8.25%
Return on equity
ROIC: 9.47%
Valuation History
28.5X
Price to Earnings
EV/EBITDA: 13.6X
Cash flow
Profit margin
7.90%
(FY vs FY)
EBITDA Y/Y
-4.23%
(FY vs FY)
Cash flow Y/Y
11.58%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.