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Upturn AI SWOT - About
ERII 
Energy Recovery Inc (ERII)
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Upturn Advisory Summary
07/11/2025: 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 $14.5
1 Year Target Price $14.5
| 2 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -23.29% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/11/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 717.21M USD | Price to earnings Ratio 36.56 | 1Y Target Price 14.5 |
Price to earnings Ratio 36.56 | 1Y Target Price 14.5 | ||
Volume (30-day avg) 3 | Beta 1.02 | 52 Weeks Range 10.86 - 20.27 | Updated Date 07/13/2025 |
52 Weeks Range 10.86 - 20.27 | Updated Date 07/13/2025 | ||
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 36.56 | Forward PE 19.92 | Enterprise Value 644772801 | Price to Sales(TTM) 5.09 |
Enterprise Value 644772801 | Price to Sales(TTM) 5.09 | ||
Enterprise Value to Revenue 4.58 | Enterprise Value to EBITDA 23.97 | Shares Outstanding 54499200 | Shares Floating 53414690 |
Shares Outstanding 54499200 | Shares Floating 53414690 | ||
Percent Insiders 2.72 | Percent Institutions 87.83 |
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 pressure exchangers for desalination. Key milestones include establishing partnerships with major desalination plant operators and expanding into oil & gas applications.
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 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
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
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
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.
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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