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 ERII
 ERII 
Energy Recovery Inc (ERII)


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Upturn Advisory Summary
10/30/2025: ERII (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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  -3.73% |  Avg. Invested days  34 |  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 10/30/2025 | 
Key Highlights
|  Company Size  Small-Cap Stock  |  Market Capitalization  913.42M  USD  |  Price to earnings Ratio  40.88  |  1Y Target Price  17  | 
|  Price to earnings Ratio  40.88  |  1Y Target Price  17  | ||
|  Volume (30-day avg)  3  |  Beta  1.02  |  52 Weeks Range  10.86 - 20.27  |  Updated Date  10/29/2025  | 
|  52 Weeks Range  10.86 - 20.27  |  Updated Date  10/29/2025  | ||
|  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  2025-11-05  |  When  -  |  Estimate  0.0667  |  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  40.88  |  Forward PE  17.64  |  Enterprise Value  775299385  |  Price to Sales(TTM)  6.44  | 
|  Enterprise Value  775299385  |  Price to Sales(TTM)  6.44  | ||
|  Enterprise Value to Revenue  5.47  |  Enterprise Value to EBITDA  25.55  |  Shares Outstanding  53198386  |  Shares Floating  52118459  | 
|  Shares Outstanding  53198386  |  Shares Floating  52118459  | ||
|  Percent Insiders  2.77  |  Percent Institutions  90.17  | 
 Upturn AI SWOT
 Upturn AI SWOT 
Energy Recovery Inc

Company Overview
 History and Background
 History and Background 
Energy Recovery Inc. was founded in 1992. Initially focused on energy recovery for industrial processes, it evolved to specialize in desalination technology. The company achieved significant milestones in developing and commercializing pressure exchanger technology, transforming the economics of desalination.
 Core Business Areas
 Core Business Areas 
- Water: Provides pressure exchangers and related technologies for desalination plants, reducing energy consumption and improving efficiency.
- Industrial: Offers solutions for industrial wastewater treatment, focusing on reducing waste and recovering valuable resources.
- Oil & Gas: Developed solutions for the oil and gas industry, including hydraulic turbine systems; but this has been largely discontinued.
 Leadership and Structure
 Leadership and Structure 
The company is led by a CEO and a senior management team overseeing various functions. The organizational structure is typical of a publicly traded company, with a board of directors responsible for governance.
Top Products and Market Share
 Key Offerings
 Key Offerings 
- PXu00ae Pressure Exchangeru00ae: A core technology used in desalination plants to recover energy from high-pressure brine. Competitors include FEDCO (Fluid Equipment Development Company).
- VorTequ2122: Hydraulic pumping system used for hydraulic fracturing in oil and gas. Has been largely discontinued. Competitors: Schlumberger, Halliburton.
Market Dynamics
 Industry Overview
 Industry Overview 
The desalination market is growing due to increasing water scarcity, driven by population growth and climate change. The industrial wastewater treatment market is also expanding due to stricter environmental regulations.
Positioning
Energy Recovery is a technology leader in energy recovery devices for desalination, holding patents and strong customer relationships, offering a competitive advantage.
Total Addressable Market (TAM)
The TAM for desalination and industrial wastewater treatment is estimated to be in the billions of dollars annually. Energy Recovery is positioned to capture a significant portion of this market with its energy-efficient technologies.
Upturn SWOT Analysis
Strengths
- Proprietary technology (PX Pressure Exchanger)
- Strong market position in desalination
- High energy efficiency of products
- Experienced management team
Weaknesses
- Dependence on desalination market (historically)
- Fluctuations in project timelines
- Limited product diversification
Opportunities
- Expansion into industrial wastewater treatment
- Growth in global desalination capacity
- Partnerships with engineering and construction firms
- Developments of more applications of the Pressure Exchanger
Threats
- Competition from alternative desalination technologies
- Economic downturns affecting capital projects
- Changes in government regulations
- Patent infringement
Competitors and Market Share
 Key Competitors
 Key Competitors 
- FEDCO
- Danfoss
Competitive Landscape
Energy Recovery has a competitive advantage due to its PX Pressure Exchanger technology, which offers high energy efficiency. Competitors offer alternative technologies with varying levels of efficiency and cost.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by the expansion of desalination capacity worldwide.
Future Projections: Analyst estimates should be parsed from financial data sites and used for future growth, for example, expansion into new markets, strategic partnerships.
Recent Initiatives: Recent strategic initiatives should be parsed from financial data sites and should include initiatives such as investment in new technologies and expansion into new markets.
Summary
Energy Recovery is a leader in energy recovery for desalination, driven by its PX Pressure Exchanger technology. Its financial performance is closely tied to the desalination market's growth. The company faces competition and economic risks but has opportunities to expand into wastewater treatment and other sectors. Energy Recovery's focus on innovation and strategic partnerships will be key to its long-term success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
 AI Summarization is directionally correct and might not be accurate.
 AI Summarization is directionally correct and might not be accurate. 
 Summarized information shown could be a few years old and not current.
 Summarized information shown could be a few years old and not current. 
 Fundamental Rating based on AI could be based on old data.
 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.
 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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