Energy Recovery, Inc. (ERII) — Stock Score Summary

Energy Recovery, Inc. (ERII) has a MoatMap StockRank of 41/100 based on Quality (71/100), Value (43/100), and Momentum (14/100) factor scores. The current signal is HOLD. Energy Recovery holds a near-monopoly (>90% market share) in energy recovery devices for seawater desalination, a critical infrastructure sector as global water scarcity intensifies. They are successfully translating this high-margin, high-ROIC technology into industrial wastewater and CO2 refrigeration. With massive pricing power and an asset-light manufacturing model, ERII is an underappreciated beneficiary of the global resource and energy efficiency supercycle.

Energy Recovery, Inc. designs and manufactures innovative energy recovery devices and pumps, primarily for seawater desalination and other industrial fluid flow applications. The company's proprietary Pressure Exchanger (PX®) technology is a market leader, providing superior energy efficiency that significantly reduces the operating costs of desalination plants. It operates as a niche industrial technology provider, enabling more sustainable and economical water solutions globally.

Key Financial Metrics

Price$8.12
Market Cap$445M
P/E (TTM)22.41
P/E (Forward)15.50
Price/Book2.34
Return on Equity10.8%
Return on Invested Capital11.3%
Debt/Equity4.80
Gross Margin64.3%
Operating Margin-103.3%
Revenue Growth20.3%
Free Cash Flow$21M

Energy Recovery, Inc. operates in the Pollution & Treatment Controls industry, part of the Industrials sector (United States).

Frequently Asked Questions

What is Energy Recovery, Inc.’s (ERII) StockRank?
MoatMap’s StockRank for Energy Recovery, Inc. (ERII) is 41/100, with a Hold signal. It is a composite of Quality (71), Value (43), and Momentum (14) factor ranks across MoatMap’s 19,000+ stock universe.
Does Energy Recovery, Inc. have an economic moat?
Energy Recovery, Inc. (ERII) has a Quality factor score of 71/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Energy Recovery, Inc. a buy, hold, or sell?
MoatMap’s current signal for Energy Recovery, Inc. (ERII) is Hold, based on a StockRank of 41/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Energy Recovery, Inc. in?
Energy Recovery, Inc. (ERII) operates in the Industrials sector, specifically the Pollution & Treatment Controls industry (United States).