Energy Recovery, Inc.

Technology
Industrial Machinery/Components
www.energyrecovery.com

Earnings Score
Moat Score

Market Cap $841.04M
PE 43
Debt -
Cash $63.39M
EV -
FCF $22.77M

Earnings

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Sales & Net Margins

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Earnings	$19.38M
EBIT	$20.79M
ROE	8%
ROA	8%
FCF	$22.77M
Equity	$233.87M
Growth Stability	72%
PE	43.39
PEG	22.4
PB	3.6
P/FCF	36.94
P/S	6.23
Price/Cash	0.08
Net Margins	-1%
Gross Margins	66%
Op. Margins	15%
Earnings CAGR	18%
Sales Growth YoY	4%
Sales Growth QoQ	42%
Sales CAGR	12%
FCF CAGR	0%
Equity CAGR	17%
Earnings Stability	0.23
Earnings Growth YoY	-12%

Earnings Growth QoQ	-1K%
Earnings CAGR 5Y	2%
Sales CAGR 5Y	6%
FCF CAGR 5Y	29%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	110%
Equity CAGR 3Y	12%
Market Cap	$841.04M
Revenue	$135.06M
Assets	$262.71M
Cash	$63.39M
Shares Outstanding	57.41M
Earnings Score	13%
Moat Score	68%
Working Capital	171.04M
Current Ratio	10.06
Gross Profit	$89.31M
Shares Growth 3y	1%
Equity Growth QoQ	7%
Equity Growth YoY	21%

Assets & ROA

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Stockholders Equity & ROE

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Energy Recovery Inc is an engineering-driven technology company. It is engaged in engineering, designing, manufacturing and supplying solutions that make industrial processes more efficient and sustainable. The company operates in two segments, Water and Emerging Technologies. It offers energy recovery devices (ERDs) and pumps as well as related products and services to the global reverse osmosis desalination market. The company derives a majority of the revenue from the Water segment. Geographically, the company operates in the U.S. and other international countries.

SEC Filings

Direct access to Energy Recovery, Inc. (ERII) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Energy Recovery, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Energy Recovery, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 18%

Stability 23%

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Energy Recovery, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Energy Recovery, Inc..

Years

Calculation mode

= $229M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$23M	$23M	$23M	$23M	$23M	$23M	$23M	$23M	$23M	$23M	$23M	$230M
DCF		$21M	$19M	$17M	$16M	$14M	$13M	$12M	$11M	$9.7M	$8.9M	$89M
Value	$229M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-27%	2%	18%	30%	13%	22%	14%	19%	17%	-1%
ROA	-	0%	3%	6%	6%	16%	7%	12%	9%	8%
ROE	-	2%	15%	19%	8%	15%	8%	13%	10%	8%

Bad Net Margins (-0.54%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.01	-0.01	0	-	-	-	-	-	-
Debt over Equity	0	0	0	0	-	-	-	-	-	-
Growth Stability	-	-	-	100%	92%	100%	72%	100%	100%	72%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (72%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	32%	20%	8%	17%	37%	-13%	21%	2%	6%
Earnings YoY growth	-	-109%	1K%	79%	-51%	142%	-46%	69%	-11%	2%
Equity YoY growth	-	2%	27%	37%	20%	26%	4%	4%	19%	9%
FCF YoY growth	-	-94%	-216%	-152%	-191%	-577%	-32%	23%	180%	29%