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ERII logo ERII
Upturn stock ratingUpturn stock rating
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Energy Recovery Inc (ERII)

Upturn stock ratingUpturn stock rating
$12.78
Last Close (24-hour delay)
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PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

06/30/2025: ERII (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

3 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $14.5

1 Year Target Price $14.5

Analysts Price Target For last 52 week
$14.5Target price
Low$10.86
Current$12.78
high$20.27

Analysis of Past Performance

Type Stock
Historic Profit -23.29%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 687.78M USD
Price to earnings Ratio 35.06
1Y Target Price 14.5
Price to earnings Ratio 35.06
1Y Target Price 14.5
Volume (30-day avg) 3
Beta 1.02
52 Weeks Range 10.86 - 20.27
Updated Date 06/29/2025
52 Weeks Range 10.86 - 20.27
Updated Date 06/29/2025
Dividends yield (FY) -
Basic EPS (TTM) 0.36

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 15.21%
Operating Margin (TTM) -149.08%

Management Effectiveness

Return on Assets (TTM) 5.62%
Return on Equity (TTM) 10.35%

Valuation

Trailing PE 35.06
Forward PE 19.16
Enterprise Value 616160707
Price to Sales(TTM) 4.88
Enterprise Value 616160707
Price to Sales(TTM) 4.88
Enterprise Value to Revenue 4.37
Enterprise Value to EBITDA 22.91
Shares Outstanding 54499200
Shares Floating 53414690
Shares Outstanding 54499200
Shares Floating 53414690
Percent Insiders 2.72
Percent Institutions 87.83

Analyst Ratings

Rating 2
Target Price 14.5
Buy -
Strong Buy 2
Buy -
Strong Buy 2
Hold 1
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Energy Recovery Inc

stock logo

Company Overview

overview logo History and Background

Energy Recovery Inc. (ERII) was founded in 1992. Initially focused on energy recovery in industrial processes, it evolved to specialize in pressure exchangers for desalination. Key milestones include establishing partnerships with major desalination plant operators and expanding into oil & gas applications.

business area logo Core Business Areas

  • Water: Designs and manufactures energy recovery devices (ERDs) used in seawater reverse osmosis (SWRO) desalination plants. ERDs transfer hydraulic energy from the high-pressure reject stream to the incoming feed water, significantly reducing energy consumption.
  • Industrial: Offers solutions for industrial wastewater treatment, including pressure exchangers and related technologies.
  • Oil & Gas: Provides solutions for gas processing to help reduce costs and improve overall efficiency of industrial processes

leadership logo Leadership and Structure

Robert Mao is the current CEO. The company has a typical corporate structure with departments focusing on engineering, manufacturing, sales, and marketing.

Top Products and Market Share

overview logo Key Offerings

  • PXu00ae Pressure Exchangeru00ae: Energy Recoveryu2019s core product, the PX Pressure Exchanger, recovers and reuses hydraulic energy in desalination. Competitors include FEDCO (Fluid Equipment Development Company) and Danfoss. ERII claims a substantial market share in SWRO desalination due to the efficiency of its PX devices, though precise figures fluctuate and are difficult to ascertain independently.
  • VorTequ2122: VorTeq is a hydraulic pumping system designed to reduce maintenance and downtime in hydraulic fracturing. Competitors include large oilfield service companies like Halliburton (HAL) and Schlumberger (SLB). Market share data specifically for VorTeq is not readily available.

Market Dynamics

industry overview logo Industry Overview

The desalination industry is growing due to increasing water scarcity. The oil & gas industry faces pressure to improve efficiency and reduce costs. Demand for sustainable water and energy solutions is rising.

Positioning

Energy Recovery Inc. is positioned as a technology leader in energy recovery for desalination and other industrial processes. Its competitive advantage lies in the efficiency and reliability of its PX Pressure Exchanger and its expanding portfolio of solutions for other industries.

Total Addressable Market (TAM)

TAM for desalination energy recovery is estimated at several billion dollars annually, growing with desalination capacity additions. Oil & gas energy efficiency market is also substantial. Energy Recovery is well-positioned to capture a significant portion of this TAM through its technology leadership.

Upturn SWOT Analysis

Strengths

  • Proprietary technology
  • Strong brand reputation in desalination
  • Established relationships with major desalination plant operators
  • High gross margins
  • Focus on sustainability

Weaknesses

  • Customer concentration (dependence on large desalination projects)
  • Exposure to cyclical industries (oil & gas)
  • Limited diversification beyond desalination
  • Dependence on external partners
  • Requires continuous innovation

Opportunities

  • Expanding desalination capacity globally
  • Penetrating new markets for energy recovery solutions
  • Developing new applications for existing technology
  • Strategic partnerships and acquisitions
  • Growth in sustainable and efficient energy solutions

Threats

  • Competition from established players and new entrants
  • Technological disruption
  • Economic downturns
  • Fluctuations in commodity prices (oil & gas)
  • Geopolitical risks affecting desalination projects

Competitors and Market Share

competitor logo Key Competitors

  • FEDCO
  • Danfoss
  • Schlumberger (SLB)
  • Halliburton (HAL)

Competitive Landscape

Energy Recovery's competitive advantage lies in the efficiency and reliability of its PX Pressure Exchanger. Its strong brand reputation in desalination and established relationships with major plant operators also provide a competitive edge. However, it faces competition from established players like FEDCO and Danfoss, as well as from large oilfield service companies in the oil & gas sector.

Major Acquisitions

Disi Energy LLC

  • Year: 2023
  • Acquisition Price (USD millions): 9
  • Strategic Rationale: The acquisition expands Energy Recovery's presence in gas processing to help reduce costs and improve overall efficiency of industrial processes.

Growth Trajectory and Initiatives

Historical Growth: Historical growth has been uneven, influenced by the timing of large desalination projects and market conditions in the oil & gas sector. Expansion into new applications and markets is expected to drive future growth.

Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by the expanding desalination market and new applications for Energy Recovery's technology. Actual results may vary.

Recent Initiatives: Recent strategic initiatives include expanding partnerships, developing new products for industrial wastewater treatment, and targeting new markets for VorTeq in the oil & gas sector.

Summary

Energy Recovery is a technology leader in energy recovery for desalination and oil & gas. The company benefits from strong margins and a focus on sustainability. Key challenges include customer concentration and volatility in project cycles. Future growth depends on its ability to penetrate new markets and applications.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company filings (SEC), Analyst reports (Yahoo Finance, MarketWatch), Industry publications (Global Water Intelligence).

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Market share data is based on publicly available information and estimates, and may not be precise. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 254

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.