Energy Recovery, Inc. (ERII) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Energy Recovery, Inc. Do?
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells various solutions for the seawater reverse osmosis desalination and industrial wastewater treatment industries worldwide. The company operates through Water and Emerging Technologies segments. It offers a suite of products, including energy recovery devices, and high-pressure feed and recirculation pumps; hydraulic turbochargers and boosters; and spare parts, as well as repair, field, and commissioning services. The company also offers a solution to reduce energy consumption in natural gas processing and in refrigeration systems that use carbon dioxide. It provides its products under the ERI, Ultra PX, PX, Pressure Exchanger, PX Pressure Exchanger, PX PowerTrain, VorTeq, IsoBoost, AT, and AquaBold names to large engineering, procurement, and construction firms; end-users and industry consultants; original equipment manufacturers; and aftermarket customers. The company was incorporated in 1992 and is headquartered in San Leandro, California. Energy Recovery, Inc. (ERII) is classified as a small-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Yu L. Mao and employs approximately 250 people, headquartered in San Leandro, California. With a market capitalization of $540M, ERII is one of the notable companies in the Industrials sector.
Energy Recovery, Inc. (ERII) Stock Rating — Reduce (April 2026)
As of April 2026, Energy Recovery, Inc. receives a Reduce rating with a composite score of 41.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.ERII ranks #2,649 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Energy Recovery, Inc. ranks #431 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ERII Stock Price and 52-Week Range
Energy Recovery, Inc. (ERII) currently trades at $11.15. The stock gained $0.09 (0.8%) in the most recent trading session. The 52-week high for ERII is $18.32, which means the stock is currently trading -39.1% from its annual peak. The 52-week low is $9.59, putting the stock 16.3% above its annual trough. Recent trading volume was 381K shares, suggesting relatively thin trading activity.
Is ERII Overvalued or Undervalued? — Valuation Analysis
Energy Recovery, Inc. (ERII) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 120.49x, compared to the Industrials sector average of 28.33x — a premium of 325%. The price-to-book ratio stands at 2.65x, versus the sector average of 2.23x. The price-to-sales ratio is 5.11x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, ERII trades at 4.93x EV/EBITDA, versus 5.70x for the sector.
Overall, ERII's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Energy Recovery, Inc. Profitability — ROE, Margins, and Quality Score
Energy Recovery, Inc. (ERII) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 2.2%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.0% versus the sector average of 3.3%.
On a margin basis, Energy Recovery, Inc. reports gross margins of 62.2%, compared to 35.8% for the sector. The operating margin is -30.2% (sector: 6.2%). Net profit margin stands at -20.3%, versus 3.9% for the average Industrials stock. Revenue growth is running at 17.6% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ERII Debt, Balance Sheet, and Financial Health
Energy Recovery, Inc. has a debt-to-equity ratio of 12.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 10.44x, indicating strong short-term liquidity. Cash and equivalents stand at $47M.
ERII has a beta of 1.55, meaning it is more volatile than the broader market — a $10,000 investment in ERII would be expected to move 55.2% more than the S&P 500 on any given day. The stability factor score for Energy Recovery, Inc. is 46/100, reflecting average volatility within the normal range for its sector.
Energy Recovery, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Energy Recovery, Inc. reported revenue of $107M and earnings per share (EPS) of $0.43. Net income for the quarter was $5M. Gross margin was 62.2%. Operating income came in at $-369,000.
In FY 2025, Energy Recovery, Inc. reported revenue of $135M and earnings per share (EPS) of $0.43. Net income for the quarter was $23M. Gross margin was 65.1%. Revenue grew -6.9% year-over-year compared to FY 2024. Operating income came in at $24M.
In Q3 2025, Energy Recovery, Inc. reported revenue of $32M and earnings per share (EPS) of $0.07. Net income for the quarter was $4M. Gross margin was 64.2%. Revenue grew -17.1% year-over-year compared to Q3 2024. Operating income came in at $4M.
In Q2 2025, Energy Recovery, Inc. reported revenue of $28M and earnings per share (EPS) of $0.04. Net income for the quarter was $2M. Gross margin was 64.0%. Revenue grew 3.1% year-over-year compared to Q2 2024. Operating income came in at $1M.
Over the past 8 quarters, Energy Recovery, Inc. has demonstrated a growth trajectory, with revenue expanding from $27M to $107M. Investors analyzing ERII stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ERII Dividend Yield and Income Analysis
Energy Recovery, Inc. (ERII) does not currently pay a dividend. This is common among smaller companies in the Machinery industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
ERII Momentum and Technical Analysis Profile
Energy Recovery, Inc. (ERII) has a momentum factor score of 20/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 56/100 reflects moderate short selling activity.
ERII vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, Energy Recovery, Inc. (ERII) ranks #431 out of 752 stocks based on the Blank Capital composite score. This places ERII in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing ERII against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ERII vs S&P 500 (SPY) comparison to assess how Energy Recovery, Inc. stacks up against the broader market across all factor dimensions.
ERII Next Earnings Date
No upcoming earnings date has been announced for Energy Recovery, Inc. (ERII) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ERII? — Investment Thesis Summary
The quantitative profile for Energy Recovery, Inc. suggests caution. Momentum is weak at 20/100, a headwind for near-term performance.
In summary, Energy Recovery, Inc. (ERII) earns a Reduce rating with a composite score of 41.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ERII stock.
Related Resources for ERII Investors
Explore more research and tools: ERII vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ERII head-to-head with peers: ERII vs SOBO, ERII vs TEN, ERII vs GLDD.