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Upturn AI SWOT - About
ERII 
Energy Recovery Inc (ERII)
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Upturn Advisory Summary
08/28/2025: ERII (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $16.5
1 Year Target Price $16.5
| 2 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -19.02% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 766.59M USD | Price to earnings Ratio 34.31 | 1Y Target Price 16.5 |
Price to earnings Ratio 34.31 | 1Y Target Price 16.5 | ||
Volume (30-day avg) 3 | Beta 1.04 | 52 Weeks Range 10.86 - 20.27 | Updated Date 08/28/2025 |
52 Weeks Range 10.86 - 20.27 | Updated Date 08/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.42 |
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 - | When - | Estimate - | Actual - |
Profitability
Profit Margin 17.02% | Operating Margin (TTM) 5.26% |
Management Effectiveness
Return on Assets (TTM) 6.76% | Return on Equity (TTM) 11.95% |
Valuation
Trailing PE 34.31 | Forward PE 21.41 | Enterprise Value 706141484 | Price to Sales(TTM) 5.41 |
Enterprise Value 706141484 | Price to Sales(TTM) 5.41 | ||
Enterprise Value to Revenue 4.98 | Enterprise Value to EBITDA 23.27 | Shares Outstanding 53198400 | Shares Floating 52115799 |
Shares Outstanding 53198400 | Shares Floating 52115799 | ||
Percent Insiders 2.77 | Percent Institutions 90.88 |
Upturn AI SWOT
Energy Recovery Inc
Company Overview
History and Background
Energy Recovery Inc. (ERII) was founded in 1992. Initially focused on energy recovery in industrial processes, it evolved to specialize in desalination and other industrial applications. A key milestone was the development and commercialization of its pressure exchanger technology. The company has diversified into gas processing and other industrial applications.
Core Business Areas
- Water: Develops and manufactures energy recovery devices for desalination plants, reducing energy consumption in reverse osmosis processes.
- Industrial: Provides solutions for industrial wastewater treatment, gas processing, and other applications, focusing on energy efficiency and cost reduction.
Leadership and Structure
Robert Mao serves as the Chairman of the Board, and Ricardo Garcia is the President and Chief Executive Officer. The company operates with a functional organizational structure, with teams focused on engineering, sales, marketing, and operations.
Top Products and Market Share
Key Offerings
- Pressure Exchanger (PX): The PX is Energy Recovery's flagship product, used in desalination plants to recover energy from the high-pressure brine stream. ERI estimates it reduces energy consumption by up to 60%. Competitors include FEDCO, Danfoss, and pump manufacturers that offer alternatives like isobaric chambers and high-efficiency pumps. Market share is estimated to be significant in the desalination market.
- VorTeq: VorTeq is a hydraulic fracturing system designed to reduce maintenance and downtime in fracking operations. Market share is smaller compared to PX, facing competition from established fracking equipment manufacturers. VorTeq market share is around 1%.
Market Dynamics
Industry Overview
The desalination market is growing due to increasing water scarcity. The industrial wastewater treatment market is also expanding, driven by stricter environmental regulations. Gas processing focuses on separation and purity, energy consumption remains high.
Positioning
Energy Recovery Inc. is positioned as a technology leader in energy recovery for desalination. Its PX technology offers a significant competitive advantage in terms of energy efficiency. In industrial applications, the company focuses on niche markets where its technology can provide a cost-effective solution.
Total Addressable Market (TAM)
The TAM for desalination energy recovery is estimated to be several billion dollars. ERI's position is strong with PX technology, which addresses the high energy consumption in reverse osmosis systems.
Upturn SWOT Analysis
Strengths
- Proprietary pressure exchanger technology
- Strong presence in the desalination market
- Experienced management team
- Focus on energy efficiency
Weaknesses
- Concentration of revenue from a limited number of large desalination projects
- Dependence on cyclical project spending in desalination
- Relatively small scale compared to larger industrial players
Opportunities
- Expansion into new geographic markets
- Development of new applications for its pressure exchanger technology
- Increased demand for desalination due to water scarcity
- Partnerships with large engineering firms
Threats
- Competition from alternative desalination technologies
- Economic downturns that could reduce investment in infrastructure projects
- Changes in government regulations
- Technological advancements by competitors
Competitors and Market Share
Key Competitors
- Danfoss A/S (Not US Stock)
- FEDCO (Privately Held)
- Grundfos (Privately Held)
Competitive Landscape
ERI's PX technology provides a significant advantage in energy efficiency. However, competitors offer alternative technologies and may have stronger relationships with some customers. ERI relies on winning bids and partnerships.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been uneven, characterized by periods of rapid revenue growth followed by periods of slower growth or decline.
Future Projections: Future growth is expected to be driven by increased demand for desalination, expansion into new markets, and the introduction of new products. Analyst estimates vary, but generally project moderate revenue growth over the next few years.
Recent Initiatives: Recent initiatives include expanding its VorTeq presence in the hydraulic fracturing market and pursuing partnerships with engineering firms to secure larger desalination projects.
Summary
Energy Recovery Inc. is a technology-focused company with strong desalination product offerings and potential for expansion into new markets, however, its revenue is heavily dependent on the timing of large projects. The companyu2019s energy recovery technology provides competitive advantages, but it faces threats from competing technologies and market cyclicality. ERI needs to diversity its revenue streams and manage its dependence on desalination to maintain long-term growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Energy Recovery Inc. Investor Relations
- Industry Reports
- Analyst Reports
- Global Water Intelligence (GWI) Database
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data is estimated and may vary. Past performance is not indicative of future results.
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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