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ERII 
Energy Recovery Inc (ERII)
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Upturn Advisory Summary
11/28/2025: ERII (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
3 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $18.24
1 Year Target Price $18.24
| 2 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -21.44% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 768.72M USD | Price to earnings Ratio 42.5 | 1Y Target Price 18.24 |
Price to earnings Ratio 42.5 | 1Y Target Price 18.24 | ||
Volume (30-day avg) 3 | Beta 1.12 | 52 Weeks Range 10.86 - 18.32 | Updated Date 11/30/2025 |
52 Weeks Range 10.86 - 18.32 | Updated Date 11/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.34 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-11-05 | When - | Estimate 0.07 | Actual 0.12 |
Profitability
Profit Margin 14.44% | Operating Margin (TTM) 11.44% |
Management Effectiveness
Return on Assets (TTM) 5.71% | Return on Equity (TTM) 9.41% |
Valuation
Trailing PE 42.5 | Forward PE 16.81 | Enterprise Value 705064787 | Price to Sales(TTM) 5.69 |
Enterprise Value 705064787 | Price to Sales(TTM) 5.69 | ||
Enterprise Value to Revenue 5.22 | Enterprise Value to EBITDA 26.2 | Shares Outstanding 52972096 | Shares Floating 51891995 |
Shares Outstanding 52972096 | Shares Floating 51891995 | ||
Percent Insiders 2.78 | Percent Institutions 89.05 |
Upturn AI SWOT
Energy Recovery Inc
Company Overview
History and Background
Energy Recovery, Inc. was founded in 1992. It initially focused on energy recovery devices for industrial applications. Over time, it transitioned to desalination and other industrial wastewater treatment solutions.
Core Business Areas
- Water: Designs and manufactures energy recovery devices for desalination plants, reducing energy consumption and costs.
- Industrial: Provides solutions for industrial wastewater treatment and gas processing, recovering energy and reducing environmental impact.
Leadership and Structure
The CEO is Robert Yu Lang Mao. The company has a board of directors and a typical corporate organizational structure with departments for sales, marketing, engineering, and finance.
Top Products and Market Share
Key Offerings
- PX Pressure Exchanger: The PX Pressure Exchanger is the core product, used in reverse osmosis desalination to recover energy from the high-pressure brine stream. ERI estimates it has over 24,000 devices installed across the globe. Competitors include Danfoss, FEDCO, and Flowserve. Estimated market share is in the range of 65-70% in the desalination market for energy recovery devices.
- VorTeq: VorTeq is a hydraulic pumping system used in hydraulic fracturing to reduce the number of pumps and maintenance needed. It is designed to lower the cost of fracturing. The adoption rate has been slow, but it still has the opportunity to revolutionize hydraulic fracturing. Competing Technologies include conventional hydraulic fracturing pumps from companies such as Halliburton (HAL) and Schlumberger (SLB).
Market Dynamics
Industry Overview
The desalination market is growing due to increasing water scarcity. Industrial wastewater treatment is also growing due to stricter environmental regulations. Hydraulic Fracturing is still being used though it is waning. Energy Recovery's niche lies in energy efficiency and recovery within these sectors.
Positioning
Energy Recovery is a leader in energy recovery devices for desalination, with a strong competitive advantage due to its patented PX technology. It holds a strong position but the VorTeq still needs to prove itself.
Total Addressable Market (TAM)
The TAM for desalination and industrial wastewater treatment is estimated to be in the billions of dollars annually. Energy Recovery is well-positioned to capture a significant share of this market through its technology and partnerships.
Upturn SWOT Analysis
Strengths
- Proprietary PX technology
- Strong market position in desalination
- Proven track record of energy savings
- Extensive global installation base
Weaknesses
- Reliance on desalination market cycles
- Limited diversification beyond core products
- Dependence on major project awards
- VorTeq has not gained mass market adoption
Opportunities
- Expanding into new desalination markets (e.g., China, India)
- Developing new applications for PX technology
- Growing industrial wastewater treatment business
- Potential for VorTeq in the hydraulic fracturing market
- Partnerships with large desalination plant constructors
Threats
- Competition from alternative desalination technologies
- Economic downturns affecting desalination investments
- Changes in environmental regulations
- Technological advancements rendering current products obsolete
Competitors and Market Share
Key Competitors
- DNOW
- FDP
Competitive Landscape
Energy Recovery's primary competitive advantage is its patented PX technology. Competitors are attempting to develop alternative energy recovery solutions, but Energy Recovery currently maintains a significant lead.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by the expansion of the desalination market. Growth has been cyclical.
Future Projections: Future growth is expected to come from expanding into new markets and applications, as well as the potential success of VorTeq. Analyst estimates vary depending on market conditions and project pipelines.
Recent Initiatives: Recent initiatives include expanding sales efforts in China and India, developing new PX-based solutions, and continuing to promote VorTeq in the hydraulic fracturing market.
Summary
Energy Recovery is a strong player in the desalination market due to their PX technology. Success is directly tied to the cyclical nature of large desalination projects, creating volatility in revenue. VorTeq's success could further diversify its growth. They should focus on expanding into new markets to maintain the growth trajectory.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), press releases, investor presentations, analyst reports, industry publications.
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It is not investment advice. Market share data is estimated and may not be precise. Future performance is not guaranteed.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Energy Recovery Inc
Exchange NASDAQ | Headquaters San Leandro, CA, United States | ||
IPO Launch date 2008-06-02 | President, CEO & Director Mr. David W. Moon | ||
Sector Industrials | Industry Pollution & Treatment Controls | Full time employees 254 | Website https://www.energyrecovery.com |
Full time employees 254 | Website https://www.energyrecovery.com | ||
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation pumps for use in water treatment industries, including seawater and brackish desalination, and wastewater treatment. It also provides PX G1300, which reduces energy consumption and operating costs of carbon dioxide-based refrigeration systems; and spare parts, as well as repair, field, and commissioning services. The company sells its products under the ERI, PX, PX Pressure Exchanger, Pressure Exchanger, Ultra High-Pressure PX, PX PowerTrain, PX G1300, PX G, AT, and Aquabold brands to supermarket chains, cold storage facilities, refrigeration system installers or OEMs, and other industrial users; and aftermarket customers consisting of desalination plant owners and operators. Energy Recovery, Inc. was incorporated in 1992 and is headquartered in San Leandro, California.
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