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Upturn AI Summary - About
Energy Recovery Inc(ERII)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ERII
10/02/2026: ERII (1-star) is currently NOT-A-BUY. Pass it for now.
Energy Recovery Inc is a specialized manufacturer known for its high-efficiency fluid-handling devices, primarily used in global desalination plants. Its primary strength lies in its proprietary PX technology, which offers significant energy cost savings to customers. The company’s investment story centers on its ability to leverage this core technology to expand into the industrial refrigeration market. However, investors must monitor the risks associated with customer concentration, long sales cycles for new technology, and market volatility inherent in capital-intensive industrial projects. Energy Recovery is best suited for growth-oriented investors looking for exposure to industrial efficiency and water infrastructure, though the lack of a dividend may not suit income-focused portfolios.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit while signal remains positive | The company offers exposure to industrial energy efficiency and desalination growth trends. |
| Momentum investor | Mixed fit | Momentum is often cyclical and depends on project wins; requires a positive upturn signal. |
| Value investor | Weak fit | The stock often trades at a premium multiple reflecting growth potential rather than deep value metrics. |
| Dividend investor | Weak fit | The company does not pay a dividend and prioritizes capital reinvestment. |
| Low-risk investor | Weak fit | Revenue concentration and market volatility in industrial machinery make this higher risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is susceptible to fluctuations based on project news and industry spending trends. |
| Valuation risk | Medium / high | High growth expectations are often baked into the share price. |
| Competition risk (industrial machinery) | Medium | Large diversified competitors could pressure margins or attempt to replicate niche efficiency offerings. |
| Business quality | Strong | The company possesses high gross margins and proprietary core technology. |
| Dividend income | Low / none | Income investors will not find yield here. |
| Execution risk | Medium | Successfully scaling into new markets like refrigeration is required to meet long-term growth targets. |
Price Behavior
Steep Decline
The stock price has dropped sharply with strong downward pressure.
Extreme Price Shocks
The stock has experienced exceptionally large and disruptive price movements during the period.
Analysis of Past Performance
Type Stock | Historic Profit -43.86% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/02/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 342.00M USD | Price to earnings Ratio 25.77 | 1Y Target Price 8 |
Price to earnings Ratio 25.77 | 1Y Target Price 8 | ||
Volume (30-day avg) 972.4K shares | Beta 0.9 | 52 Weeks Range 6.60 - 18.32 | Updated Date 10/01/2026 |
52 Weeks Range 6.60 - 18.32 | Updated Date 10/01/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.26 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Water Segment | PX Pressure Exchanger and related equipment for desalination plants. | The reliable cash cow providing stable revenue through global water infrastructure projects. |
| Emerging Technologies | PX solutions for CO2 refrigeration and other industrial applications. | The growth engine intended to diversify the company beyond desalination. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 25.77 | Forward PE 21.23 | Enterprise Value 262.28M | Price to Sales(TTM) 2.84 |
Enterprise Value 262.28M | Price to Sales(TTM) 2.84 | ||
Enterprise Value to Revenue 2.18 | Enterprise Value to EBITDA 11.98 | Shares Outstanding 51.04M | Shares Floating 49.20M |
Shares Outstanding 51.04M | Shares Floating 49.20M | ||
Percent Insiders 2 | Percent Institutions 97.5 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Energy Recovery Inc
Exchange NASDAQ | Headquarters San Leandro, CA, United States | ||
IPO Launch date 2008-06-02 | Interim President, CEO & Director Mr. Alexander J. Buehler | ||
Sector Industrials | Industry Pollution & Treatment Controls | Full time employees 230 | Website https://www.energyrecovery.com |
Full time employees 230 | 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 G1300, PX PowerTrain, 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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