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Upturn AI SWOT - About
ERII 
Energy Recovery Inc (ERII)
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Upturn Advisory Summary
09/17/2025: 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 $17
1 Year Target Price $17
| 2 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -17.95% | Avg. Invested days 30 | 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 09/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 777.76M USD | Price to earnings Ratio 34.81 | 1Y Target Price 17 |
Price to earnings Ratio 34.81 | 1Y Target Price 17 | ||
Volume (30-day avg) 3 | Beta 1.02 | 52 Weeks Range 10.86 - 20.27 | Updated Date 09/16/2025 |
52 Weeks Range 10.86 - 20.27 | Updated Date 09/16/2025 | ||
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 34.81 | Forward PE 16.16 | Enterprise Value 705077516 | Price to Sales(TTM) 5.49 |
Enterprise Value 705077516 | Price to Sales(TTM) 5.49 | ||
Enterprise Value to Revenue 4.97 | Enterprise Value to EBITDA 23.23 | Shares Outstanding 53198400 | Shares Floating 52115799 |
Shares Outstanding 53198400 | Shares Floating 52115799 | ||
Percent Insiders 2.77 | Percent Institutions 91 |
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 before pivoting to the desalination market. The company has evolved into a leading provider of energy recovery devices and specialized pumps for various industries.
Core Business Areas
- Water: Energy Recovery's core business revolves around pressure exchangers (PX) that reduce energy consumption in seawater reverse osmosis (SWRO) desalination plants. They also manufacture pumps and control systems for water treatment facilities.
- Industrial: Energy Recovery develops and supplies energy recovery devices for industrial processes such as gas processing, chemical manufacturing, and waste heat recovery.
- Oil & Gas: Energy Recovery provides high-pressure pumps and energy recovery devices used in hydraulic fracturing and other oil and gas operations.
Leadership and Structure
The leadership team is headed by the CEO, followed by CFO and other executives managing sales, engineering, and operations. The organizational structure is functional, with departments focusing on specific business areas and support functions.
Top Products and Market Share
Key Offerings
- PX G1300: Energy Recovery's PX G1300 is the largest, and most efficient pressure exchanger for large-scale desalination plants.
- PX Pressure Exchanger: Energy Recovery's PX devices are used in desalination plants to recover energy from high-pressure brine. Their market share in energy recovery for desalination is substantial, estimated to be between 60% and 70% globally. Competitors include FEDCO, Danfoss, and various Chinese manufacturers.
- VorTeq Hydraulic Fracturing System: The VorTeq system is a hydraulic pumping system for the oil and gas industry that increases efficiency and reduces wear. Market share information is less readily available, and competition comes from traditional fracturing pump manufacturers like Caterpillar and Schlumberger. Revenue from this product is volatile due to the cyclical nature of the oil & gas industry.
Market Dynamics
Industry Overview
The desalination industry is experiencing growth due to increasing global water scarcity. The oil and gas industry is subject to cyclical fluctuations, impacting demand for hydraulic fracturing technologies. The industrial sector is increasingly focused on energy efficiency and waste heat recovery.
Positioning
Energy Recovery Inc. is positioned as a technology leader in energy recovery for desalination and a provider of innovative solutions for oil and gas. Their competitive advantages include patented technology, high-efficiency products, and a strong reputation.
Total Addressable Market (TAM)
The total addressable market for desalination technologies is estimated to be in the billions of dollars annually. Energy Recovery is positioned to capture a significant portion of this TAM by focusing on large-scale SWRO plants. The TAM for Oil & Gas hydraulic fracturing is cyclical. The TAM for industrial processing is expanding as ESG (Environmental, Social, and Governance) grows in importance.
Upturn SWOT Analysis
Strengths
- Patented Technology
- High Efficiency Products
- Strong Reputation
- Established Market Position in Desalination
Weaknesses
- Dependence on Desalination Market
- Cyclical Exposure to Oil & Gas
- Customer Concentration
- Geographic Concentration
Opportunities
- Growing Desalination Market
- Expansion into Industrial Applications
- Development of New Technologies
- Geographic Expansion
Threats
- Competition from Lower-Cost Alternatives
- Fluctuations in Oil Prices
- Technological Disruption
- Economic Downturns
Competitors and Market Share
Key Competitors
- DAN (Danfoss)
- PRIVATE (FEDCO)
Competitive Landscape
Energy Recovery Inc. has a competitive advantage due to its patented PX technology and established market position. Competitors offer alternative technologies or focus on specific geographic regions.
Major Acquisitions
Desalitech
- Year: 2019
- Acquisition Price (USD millions): 80
- Strategic Rationale: Desalitech provided a complementary technology portfolio in closed circuit reverse osmosis (CCRO) and enhanced Energy Recovery's ability to provide complete solutions for water treatment.
Growth Trajectory and Initiatives
Historical Growth: Energy Recovery Inc. has experienced revenue growth due to the expansion of the desalination market and increased demand for its products. The companyu2019s financial history shows varying degrees of growth depending on economic cycles.
Future Projections: Analyst estimates project continued growth for Energy Recovery Inc., driven by the growing need for desalination and expansion into new markets. Specific numerical projections vary depending on the source.
Recent Initiatives: Recent initiatives include new product development for industrial applications, expansion into new geographic markets, and strategic partnerships with desalination plant operators.
Summary
Energy Recovery Inc. is a strong company with a dominant position in the desalination market due to its patented PX technology. The company is experiencing growth due to increasing global water scarcity. However, it is exposed to the cyclical oil and gas market. To ensure continued success, the company needs to diversify its revenue streams and manage its customer concentration.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Investor Presentations
- Analyst Reports
- Industry Research Reports
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It is not financial advice. Investment decisions should be based on thorough research and consultation with a financial professional.
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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