Energy Recovery, Inc. (ERII) 10-Year Financial Performance & Capital Metrics

ERII • • Industrial / General

IndustrialsEnvironmental ServicesWater Treatment & PurificationDesalination & Energy Recovery

AboutEnergy 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.Show more

Revenue $145M +12.9%
EBITDA $26M +3.0%
Net Income $23M +7.2%
EPS (Diluted) 0.40 +8.1%
Gross Margin 66.87% -1.4%
EBITDA Margin 17.62% -8.8%
Operating Margin 13.61% -8.3%
Net Margin 15.9% -5.1%
ROE 10.73% +1.0%
ROIC 8.29% -10.3%
Debt/Equity 0.05 -10.8%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 16.1%
✓Strong 5Y sales CAGR of 14.8%
✓Healthy 5Y average net margin of 18.8%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y16.9%

5Y14.76%

3Y11.74%

TTM0.1%

Profit (Net Income) CAGR

10Y-

5Y16.13%

3Y17.33%

TTM0.7%

EPS CAGR

10Y-

5Y16.05%

3Y18.56%

TTM0.41%

ROCE

10Y Avg6.02%

5Y Avg11.08%

3Y Avg10.08%

Latest8.75%

Peer Comparison

Desalination & Energy Recovery

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ERIIEnergy Recovery, Inc.	757.5M	14.30	35.75	12.93%	14.44%	10.79%	2.54%	0.05

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	44.71M	54.72M	63.16M	74.52M	72.83M	92.09M	103.9M	125.59M	128.35M	144.95M
Revenue Growth %	0.47%	0.22%	0.15%	0.18%	-0.02%	0.26%	0.13%	0.21%	0.02%	0.13%
Cost of Goods Sold+	19.11M	17.85M	19.06M	17.87M	20.34M	28.25M	32.67M	38.23M	41.27M	48.02M
COGS % of Revenue	0.43%	0.33%	0.3%	0.24%	0.28%	0.31%	0.31%	0.3%	0.32%	0.33%
Gross Profit+	25.6M	36.87M	44.09M	56.64M	52.5M	63.84M	71.23M	87.36M	87.08M	96.93M
Gross Margin %	0.57%	0.67%	0.7%	0.76%	0.72%	0.69%	0.69%	0.7%	0.68%	0.67%
Gross Profit Growth %	0.53%	0.44%	0.2%	0.28%	-0.07%	0.22%	0.12%	0.23%	-0%	0.11%
Operating Expenses+	37.39M	36.51M	40.82M	46.66M	42.13M	32.55M	57.4M	62.53M	68.03M	77.21M
OpEx % of Revenue	0.84%	0.67%	0.65%	0.63%	0.58%	0.35%	0.55%	0.5%	0.53%	0.53%
Selling, General & Admin	29.1M	25.74M	26.75M	29.02M	32.27M	33.65M	37.32M	44.62M	51.03M	58.5M
SG&A % of Revenue	0.65%	0.47%	0.42%	0.39%	0.44%	0.37%	0.36%	0.36%	0.4%	0.4%
Research & Development	7.66M	10.14M	13.44M	17.01M	23.4M	23.45M	20.07M	17.91M	17M	16.24M
R&D % of Revenue	0.17%	0.19%	0.21%	0.23%	0.32%	0.25%	0.19%	0.14%	0.13%	0.11%
Other Operating Expenses	-139K	290K	-188K	-80K	-13.53M	-24.55M	12K	0	0	2.48M
Operating Income+	-11.79M	357K	3.28M	9.98M	10.36M	31.29M	13.83M	24.83M	19.05M	19.72M
Operating Margin %	-0.26%	0.01%	0.05%	0.13%	0.14%	0.34%	0.13%	0.2%	0.15%	0.14%
Operating Income Growth %	0.36%	1.03%	8.18%	2.05%	0.04%	2.02%	-0.56%	0.8%	-0.23%	0.04%
EBITDA+	-7.95M	4.04M	6.94M	13.84M	14.76M	36.59M	19.77M	31.13M	24.8M	25.54M
EBITDA Margin %	-0.18%	0.07%	0.11%	0.19%	0.2%	0.4%	0.19%	0.25%	0.19%	0.18%
EBITDA Growth %	0.45%	1.51%	0.72%	0.99%	0.07%	1.48%	-0.46%	0.57%	-0.2%	0.03%
D&A (Non-Cash Add-back)	3.84M	3.68M	3.67M	3.86M	4.39M	5.3M	5.94M	6.3M	5.75M	5.82M
EBIT	-11.93M	3.72M	9.25M	11.44M	10.36M	33.63M	13.83M	24.83M	19.05M	22.2M
Net Interest Income+	11K	306K	868K	1.54M	2.01M	913K	204K	908K	3.76M	6.22M
Interest Income	53K	309K	870K	1.54M	2.01M	913K	204K	908K	3.76M	6.22M
Interest Expense	42K	3K	2K	1K	0	0	0	0	0	0
Other Income/Expense	-181K	287K	680K	1.46M	1.89M	839K	173K	1.24M	3.65M	6.01M
Pretax Income+	-11.97M	644K	3.96M	11.44M	12.26M	32.13M	14M	26.07M	22.7M	25.73M
Pretax Margin %	-0.27%	0.01%	0.06%	0.15%	0.17%	0.35%	0.13%	0.21%	0.18%	0.18%
Income Tax+	-334K	-390K	-8.39M	-10.65M	1.34M	5.75M	-265K	2.02M	1.2M	2.69M
Effective Tax Rate %	0.97%	1.61%	3.12%	1.93%	0.89%	0.82%	1.02%	0.92%	0.95%	0.9%
Net Income+	-11.64M	1.03M	12.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Net Margin %	-0.26%	0.02%	0.2%	0.3%	0.15%	0.29%	0.14%	0.19%	0.17%	0.16%
Net Income Growth %	0.38%	1.09%	10.94%	0.79%	-0.51%	1.42%	-0.46%	0.69%	-0.11%	0.07%
Net Income (Continuing)	-11.64M	1.03M	18.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	-0.22	0.07	0.33	0.40	0.19	0.47	0.24	0.42	0.37	0.40
EPS Growth %	0.39%	1.32%	3.71%	0.21%	-0.53%	1.47%	-0.49%	0.75%	-0.12%	0.08%
EPS (Basic)	-0.22	0.07	0.34	0.41	0.20	0.47	0.25	0.43	0.38	0.40
Diluted Shares Outstanding	52.15M	55.45M	55.61M	55.34M	56.07M	56.64M	58.72M	57.64M	57.74M	57.82M
Basic Shares Outstanding	52.15M	52.34M	53.7M	53.76M	54.74M	55.71M	56.99M	56.22M	56.44M	57.21M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	123.53M	122.37M	126.2M	119.65M	112.97M	143.19M	151.76M	157.87M	185.47M	173.66M
Cash & Short-Term Investments	100.19M	100.44M	97.8M	95.29M	85.12M	114.7M	105.69M	89.83M	108.54M	78.02M
Cash Only	99.93M	61.36M	27.78M	21.95M	26.39M	94.25M	74.36M	56.35M	68.1M	29.63M
Short-Term Investments	257K	39.07M	70.02M	73.34M	58.74M	20.45M	31.33M	33.48M	40.45M	48.39M
Accounts Receivable	13.47M	14.05M	19.18M	14.29M	13.48M	13.1M	21.11M	36.1M	48.11M	67.48M
Days Sales Outstanding	109.98	93.7	110.86	70.02	67.55	51.93	74.15	104.92	136.82	169.92
Inventory	6.5M	4.55M	5.51M	7.14M	10.32M	11.75M	20.38M	28.37M	26.15M	24.91M
Days Inventory Outstanding	124.2	93.04	105.59	145.77	185.18	151.79	227.73	270.79	231.27	189.33
Other Current Assets	2.64M	3.26M	3.42M	97K	981K	2.65M	2.87M	2.26M	2.18M	1.76M
Total Non-Current Assets+	28.27M	26.69M	35.55M	60.19M	75.81M	61.12M	61.93M	59.17M	67.5M	69.14M
Property, Plant & Equipment	10.62M	8.64M	13.39M	26.81M	30.04M	36.27M	35.01M	32.7M	30.17M	25.12M
Fixed Asset Turnover	4.21x	6.33x	4.72x	2.78x	2.42x	2.54x	2.97x	3.84x	4.25x	5.77x
Goodwill	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M
Intangible Assets	2.53M	1.9M	1.27M	640K	65K	49K	37K	0	0	0
Long-Term Investments	2.32M	2.09M	182K	1.27M	15.42M	0	2.3M	3.06M	13.83M	21.83M
Other Non-Current Assets	-936K	4K	12K	368K	598K	988K	367K	366K	388K	391K
Total Assets+	151.8M	149.06M	161.74M	179.84M	188.77M	204.31M	213.69M	217.04M	252.97M	242.79M
Asset Turnover	0.29x	0.37x	0.39x	0.41x	0.39x	0.45x	0.49x	0.58x	0.51x	0.60x
Asset Growth %	0.77%	-0.02%	0.09%	0.11%	0.05%	0.08%	0.05%	0.02%	0.17%	-0.04%
Total Current Liabilities+	16.02M	17.16M	19.83M	27.13M	27.83M	15.73M	19.79M	18.3M	21.47M	23.43M
Accounts Payable	1.86M	1.5M	4.09M	1.44M	1.19M	1.12M	909K	814K	3M	3.11M
Days Payables Outstanding	35.62	30.78	78.34	29.39	21.4	14.45	10.16	7.77	26.53	23.63
Short-Term Debt	10K	11K	11K	926K	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	571K
Other Current Liabilities	3.18M	2.66M	11.74M	3.46M	3.83M	760K	0	968K	1.06M	1.09M
Current Ratio	7.71x	7.13x	6.36x	4.41x	4.06x	9.10x	7.67x	8.63x	8.64x	7.41x
Quick Ratio	7.30x	6.87x	6.08x	4.15x	3.69x	8.36x	6.64x	7.08x	7.42x	6.35x
Cash Conversion Cycle	198.56	155.97	138.11	186.41	231.34	189.27	291.72	367.94	341.55	335.62
Total Non-Current Liabilities+	72.12M	66.77M	59.38M	39.33M	24.93M	16.96M	15.13M	13.4M	11.7M	9.35M
Long-Term Debt	38K	27K	16K	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	1.7M	12.56M	11.53M	16.44M	14.88M	13.28M	11.49M	9.3M
Deferred Tax Liabilities	2.36M	2.23M	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	718K	554K	0	236K	278K	430K	247K	121K	207K	57K
Total Liabilities	88.14M	83.93M	79.21M	66.46M	52.76M	32.69M	34.91M	31.7M	33.17M	32.78M
Total Debt+	48K	38K	27K	13.48M	12.56M	17.69M	16.44M	14.88M	13.28M	11.32M
Net Debt	-99.88M	-61.33M	-27.75M	-8.47M	-13.83M	-76.57M	-57.91M	-41.48M	-54.82M	-18.31M
Debt / Equity	0.00x	0.00x	0.00x	0.12x	0.09x	0.10x	0.09x	0.08x	0.06x	0.05x
Debt / EBITDA	-	0.01x	0.00x	0.97x	0.85x	0.48x	0.83x	0.48x	0.54x	0.44x
Net Debt / EBITDA	-	-15.19x	-4.00x	-0.61x	-0.94x	-2.09x	-2.93x	-1.33x	-2.21x	-0.72x
Interest Coverage	-280.74x	119.00x	1638.00x	9978.00x	-	-	-	-	-	-
Total Equity+	63.66M	65.13M	82.53M	113.38M	136.01M	171.62M	178.78M	185.34M	219.81M	210.01M
Equity Growth %	-0.09%	0.02%	0.27%	0.37%	0.2%	0.26%	0.04%	0.04%	0.19%	-0.04%
Book Value per Share	1.22	1.17	1.48	2.05	2.43	3.03	3.04	3.22	3.81	3.63
Total Shareholders' Equity	63.66M	65.13M	82.53M	113.38M	136.01M	171.62M	178.78M	185.34M	219.81M	210.01M
Common Stock	55K	57K	58K	59K	61K	62K	64K	64K	65K	66K
Retained Earnings	-59.31M	-58.27M	-45.92M	-14.47M	-3.55M	22.83M	37.1M	61.15M	82.66M	105.71M
Treasury Stock	-6.83M	-16.21M	-20.49M	-30.49M	-30.49M	-30.49M	-53.83M	-80.49M	-80.49M	-130.87M
Accumulated OCI	-64K	-118K	-125K	-133K	-37K	53K	-149K	-349K	-44K	98K
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	69.06M	4.96M	2.9M	7.57M	5.27M	16.87M	13.53M	12.63M	26.05M	20.52M
Operating CF Margin %	1.54%	0.09%	0.05%	0.1%	0.07%	0.18%	0.13%	0.1%	0.2%	0.14%
Operating CF Growth %	19.59%	-0.93%	-0.42%	1.61%	-0.3%	2.2%	-0.2%	-0.07%	1.06%	-0.21%
Net Income	-11.64M	1.03M	12.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Depreciation & Amortization	3.84M	3.68M	3.67M	3.87M	4.39M	5.3M	5.94M	6.3M	5.75M	5.82M
Stock-Based Compensation	4.06M	3.26M	4.09M	5.24M	5.68M	4.79M	6.06M	6.51M	8.04M	10.32M
Deferred Taxes	-326K	-459K	-8.87M	-10.38M	1.42M	5.87M	-391K	1.16M	-61K	1.32M
Other Non-Cash Items	-1.91M	-257K	710K	1.44M	559K	3.12M	1.52M	479K	164K	-1.25M
Working Capital Changes	75.03M	-2.3M	-9.05M	-14.69M	-17.7M	-28.59M	-13.87M	-25.86M	-9.34M	-18.74M
Change in Receivables	-743K	-244K	-761K	1.92M	-2.68M	1.1M	-8.82M	-13.48M	-12.87M	-17.21M
Change in Inventory	1.95M	2.29M	-1.25M	-1.87M	-3.26M	-1.62M	-8.77M	-8.28M	1.35M	1.2M
Change in Payables	48K	-360K	2.12M	-2.27M	-373K	-205K	-155K	138K	2.63M	787K
Cash from Investing+	14.02M	-40.71M	-37.37M	-10.16M	-6.88M	46.6M	-20.56M	-6.95M	-19.11M	-15.65M
Capital Expenditures	-572K	-1.11M	-7.38M	-5.24M	-7.38M	-6.79M	-6.68M	-3.13M	-2.57M	-1.3M
CapEx % of Revenue	0.01%	0.02%	0.12%	0.07%	0.1%	0.07%	0.06%	0.02%	0.02%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	1.67M	-577K	1.54M	-5.24M	-7.38M	-6.79M	-6.68M	-40.86M	87K	133K
Cash from Financing+	1.37M	-2.79M	951K	-5.89M	5.96M	4.37M	-12.79M	-23.67M	4.79M	-43.28M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	0	0	-270K	-150K	-110K	-23K	0	0	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	68.48M	3.85M	-4.48M	2.33M	-2.11M	10.09M	6.85M	9.5M	23.49M	19.22M
FCF Margin %	1.53%	0.07%	-0.07%	0.03%	-0.03%	0.11%	0.07%	0.08%	0.18%	0.13%
FCF Growth %	11.91%	-0.94%	-2.16%	1.52%	-1.91%	5.77%	-0.32%	0.39%	1.47%	-0.18%
FCF per Share	1.31	0.07	-0.08	0.04	-0.04	0.18	0.12	0.16	0.41	0.33
FCF Conversion (FCF/Net Income)	-5.93x	4.80x	0.23x	0.34x	0.48x	0.64x	0.95x	0.53x	1.21x	0.89x
Interest Paid	42K	3K	2K	1K	0	0	0	0	0	0
Taxes Paid	24K	51K	57K	610K	52K	52K	76K	549K	505K	1.55M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-17.43%	1.61%	16.73%	22.55%	8.75%	17.15%	8.14%	13.21%	10.62%	10.73%
Return on Invested Capital (ROIC)	-97.22%	7.03%	8.39%	9.37%	6.85%	21.61%	9.61%	14.07%	9.25%	8.29%
Gross Margin	57.26%	67.38%	69.82%	76.01%	72.08%	69.32%	68.56%	69.56%	67.85%	66.87%
Net Margin	-26.03%	1.89%	19.55%	29.65%	14.98%	28.65%	13.73%	19.15%	16.75%	15.9%
Debt / Equity	0.00x	0.00x	0.00x	0.12x	0.09x	0.10x	0.09x	0.08x	0.06x	0.05x
Interest Coverage	-280.74x	119.00x	1638.00x	9978.00x	-	-	-	-	-	-
FCF Conversion	-5.93x	4.80x	0.23x	0.34x	0.48x	0.64x	0.95x	0.53x	1.21x	0.89x
Revenue Growth	46.96%	22.37%	15.43%	17.99%	-2.26%	26.44%	12.83%	20.87%	2.2%	12.93%

Revenue by Segment

	2017	2018	2019	2020	2021	2022	2023	2024
Water	-	-	-	-	-	-	127.72M	144.31M
Water Growth	-	-	-	-	-	-	-	12.98%
Emerging Technologies	-	-	-	-	-	-	980K	638K
Emerging Technologies Growth	-	-	-	-	-	-	-	-34.90%
Product	-	61.02M	72.83M	92.09M	103.9M	125.59M	-	-
Product Growth	-	-	19.35%	26.44%	12.83%	20.87%	-	-
License and Service	-	13.49M	-	-	-	-	-	-
License and Service Growth	-	-	-	-	-	-	-	-
Water	70.33M	-	-	-	-	-	-	-
Water Growth	-	-	-	-	-	-	-	-
Oil and Gas	11.88M	-	-	-	-	-	-	-
Oil and Gas Growth	-	-	-	-	-	-	-	-

Revenue by Geography

	2017	2018	2019	2020	2021	2022	2023	2024
Middle East And Africa	-	-	-	-	-	-	76.61M	90.67M
Middle East And Africa Growth	-	-	-	-	-	-	-	18.34%
Asia	-	-	-	-	-	-	30.5M	36.07M
Asia Growth	-	-	-	-	-	-	-	18.25%
Europe	-	-	-	-	-	-	6.03M	9.22M
Europe Growth	-	-	-	-	-	-	-	52.73%
Americas	-	-	-	-	-	-	15.2M	9M
Americas Growth	-	-	-	-	-	-	-	-40.81%
Water	-	-	-	-	-	86.23M	-	-
Water Growth	-	-	-	-	-	-	-	-
Water	-	-	46.57M	-	103.85M	-	-	-
Water Growth	-	-	-	-	-	-	-	-
Non-US	56.32M	59.38M	-	-	-	-	-	-
Non-US Growth	-	5.44%	-	-	-	-	-	-
UNITED STATES	1.84M	1.65M	-	-	-	-	-	-
UNITED STATES Growth	-	-10.55%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Energy Recovery, Inc. (ERII) has a price-to-earnings (P/E) ratio of 35.8x. This suggests investors expect higher future growth.

Growth & Financials

Energy Recovery, Inc. (ERII) reported $135.2M in revenue for fiscal year 2024. This represents a 382% increase from $28.0M in 2011.

Energy Recovery, Inc. (ERII) grew revenue by 12.9% over the past year. This is steady growth.

Yes, Energy Recovery, Inc. (ERII) is profitable, generating $19.5M in net income for fiscal year 2024 (15.9% net margin).

Dividend & Returns

Energy Recovery, Inc. (ERII) has a return on equity (ROE) of 10.7%. This is reasonable for most industries.

Energy Recovery, Inc. (ERII) generated $19.9M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

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Energy Recovery, Inc. (ERII) 10-Year Financial Performance & Capital Metrics

ERII • • Industrial / General

IndustrialsEnvironmental ServicesWater Treatment & PurificationDesalination & Energy Recovery

Revenue $145M +12.9%
EBITDA $26M +3.0%
Net Income $23M +7.2%
EPS (Diluted) 0.40 +8.1%
Gross Margin 66.87% -1.4%
EBITDA Margin 17.62% -8.8%
Operating Margin 13.61% -8.3%
Net Margin 15.9% -5.1%
ROE 10.73% +1.0%
ROIC 8.29% -10.3%
Debt/Equity 0.05 -10.8%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 16.1%
✓Strong 5Y sales CAGR of 14.8%
✓Healthy 5Y average net margin of 18.8%

✗Weaknesses

No significant weaknesses identified

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y16.9%

5Y14.76%

3Y11.74%

TTM0.1%

Profit (Net Income) CAGR

10Y-

5Y16.13%

3Y17.33%

TTM0.7%

EPS CAGR

10Y-

5Y16.05%

3Y18.56%

TTM0.41%

ROCE

10Y Avg6.02%

5Y Avg11.08%

3Y Avg10.08%

Latest8.75%

Peer Comparison

Desalination & Energy Recovery

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ERIIEnergy Recovery, Inc.	757.5M	14.30	35.75	12.93%	14.44%	10.79%	2.54%	0.05

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	44.71M	54.72M	63.16M	74.52M	72.83M	92.09M	103.9M	125.59M	128.35M	144.95M
Revenue Growth %	0.47%	0.22%	0.15%	0.18%	-0.02%	0.26%	0.13%	0.21%	0.02%	0.13%
Cost of Goods Sold+	19.11M	17.85M	19.06M	17.87M	20.34M	28.25M	32.67M	38.23M	41.27M	48.02M
COGS % of Revenue	0.43%	0.33%	0.3%	0.24%	0.28%	0.31%	0.31%	0.3%	0.32%	0.33%
Gross Profit+	25.6M	36.87M	44.09M	56.64M	52.5M	63.84M	71.23M	87.36M	87.08M	96.93M
Gross Margin %	0.57%	0.67%	0.7%	0.76%	0.72%	0.69%	0.69%	0.7%	0.68%	0.67%
Gross Profit Growth %	0.53%	0.44%	0.2%	0.28%	-0.07%	0.22%	0.12%	0.23%	-0%	0.11%
Operating Expenses+	37.39M	36.51M	40.82M	46.66M	42.13M	32.55M	57.4M	62.53M	68.03M	77.21M
OpEx % of Revenue	0.84%	0.67%	0.65%	0.63%	0.58%	0.35%	0.55%	0.5%	0.53%	0.53%
Selling, General & Admin	29.1M	25.74M	26.75M	29.02M	32.27M	33.65M	37.32M	44.62M	51.03M	58.5M
SG&A % of Revenue	0.65%	0.47%	0.42%	0.39%	0.44%	0.37%	0.36%	0.36%	0.4%	0.4%
Research & Development	7.66M	10.14M	13.44M	17.01M	23.4M	23.45M	20.07M	17.91M	17M	16.24M
R&D % of Revenue	0.17%	0.19%	0.21%	0.23%	0.32%	0.25%	0.19%	0.14%	0.13%	0.11%
Other Operating Expenses	-139K	290K	-188K	-80K	-13.53M	-24.55M	12K	0	0	2.48M
Operating Income+	-11.79M	357K	3.28M	9.98M	10.36M	31.29M	13.83M	24.83M	19.05M	19.72M
Operating Margin %	-0.26%	0.01%	0.05%	0.13%	0.14%	0.34%	0.13%	0.2%	0.15%	0.14%
Operating Income Growth %	0.36%	1.03%	8.18%	2.05%	0.04%	2.02%	-0.56%	0.8%	-0.23%	0.04%
EBITDA+	-7.95M	4.04M	6.94M	13.84M	14.76M	36.59M	19.77M	31.13M	24.8M	25.54M
EBITDA Margin %	-0.18%	0.07%	0.11%	0.19%	0.2%	0.4%	0.19%	0.25%	0.19%	0.18%
EBITDA Growth %	0.45%	1.51%	0.72%	0.99%	0.07%	1.48%	-0.46%	0.57%	-0.2%	0.03%
D&A (Non-Cash Add-back)	3.84M	3.68M	3.67M	3.86M	4.39M	5.3M	5.94M	6.3M	5.75M	5.82M
EBIT	-11.93M	3.72M	9.25M	11.44M	10.36M	33.63M	13.83M	24.83M	19.05M	22.2M
Net Interest Income+	11K	306K	868K	1.54M	2.01M	913K	204K	908K	3.76M	6.22M
Interest Income	53K	309K	870K	1.54M	2.01M	913K	204K	908K	3.76M	6.22M
Interest Expense	42K	3K	2K	1K	0	0	0	0	0	0
Other Income/Expense	-181K	287K	680K	1.46M	1.89M	839K	173K	1.24M	3.65M	6.01M
Pretax Income+	-11.97M	644K	3.96M	11.44M	12.26M	32.13M	14M	26.07M	22.7M	25.73M
Pretax Margin %	-0.27%	0.01%	0.06%	0.15%	0.17%	0.35%	0.13%	0.21%	0.18%	0.18%
Income Tax+	-334K	-390K	-8.39M	-10.65M	1.34M	5.75M	-265K	2.02M	1.2M	2.69M
Effective Tax Rate %	0.97%	1.61%	3.12%	1.93%	0.89%	0.82%	1.02%	0.92%	0.95%	0.9%
Net Income+	-11.64M	1.03M	12.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Net Margin %	-0.26%	0.02%	0.2%	0.3%	0.15%	0.29%	0.14%	0.19%	0.17%	0.16%
Net Income Growth %	0.38%	1.09%	10.94%	0.79%	-0.51%	1.42%	-0.46%	0.69%	-0.11%	0.07%
Net Income (Continuing)	-11.64M	1.03M	18.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	-0.22	0.07	0.33	0.40	0.19	0.47	0.24	0.42	0.37	0.40
EPS Growth %	0.39%	1.32%	3.71%	0.21%	-0.53%	1.47%	-0.49%	0.75%	-0.12%	0.08%
EPS (Basic)	-0.22	0.07	0.34	0.41	0.20	0.47	0.25	0.43	0.38	0.40
Diluted Shares Outstanding	52.15M	55.45M	55.61M	55.34M	56.07M	56.64M	58.72M	57.64M	57.74M	57.82M
Basic Shares Outstanding	52.15M	52.34M	53.7M	53.76M	54.74M	55.71M	56.99M	56.22M	56.44M	57.21M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	123.53M	122.37M	126.2M	119.65M	112.97M	143.19M	151.76M	157.87M	185.47M	173.66M
Cash & Short-Term Investments	100.19M	100.44M	97.8M	95.29M	85.12M	114.7M	105.69M	89.83M	108.54M	78.02M
Cash Only	99.93M	61.36M	27.78M	21.95M	26.39M	94.25M	74.36M	56.35M	68.1M	29.63M
Short-Term Investments	257K	39.07M	70.02M	73.34M	58.74M	20.45M	31.33M	33.48M	40.45M	48.39M
Accounts Receivable	13.47M	14.05M	19.18M	14.29M	13.48M	13.1M	21.11M	36.1M	48.11M	67.48M
Days Sales Outstanding	109.98	93.7	110.86	70.02	67.55	51.93	74.15	104.92	136.82	169.92
Inventory	6.5M	4.55M	5.51M	7.14M	10.32M	11.75M	20.38M	28.37M	26.15M	24.91M
Days Inventory Outstanding	124.2	93.04	105.59	145.77	185.18	151.79	227.73	270.79	231.27	189.33
Other Current Assets	2.64M	3.26M	3.42M	97K	981K	2.65M	2.87M	2.26M	2.18M	1.76M
Total Non-Current Assets+	28.27M	26.69M	35.55M	60.19M	75.81M	61.12M	61.93M	59.17M	67.5M	69.14M
Property, Plant & Equipment	10.62M	8.64M	13.39M	26.81M	30.04M	36.27M	35.01M	32.7M	30.17M	25.12M
Fixed Asset Turnover	4.21x	6.33x	4.72x	2.78x	2.42x	2.54x	2.97x	3.84x	4.25x	5.77x
Goodwill	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M	12.79M
Intangible Assets	2.53M	1.9M	1.27M	640K	65K	49K	37K	0	0	0
Long-Term Investments	2.32M	2.09M	182K	1.27M	15.42M	0	2.3M	3.06M	13.83M	21.83M
Other Non-Current Assets	-936K	4K	12K	368K	598K	988K	367K	366K	388K	391K
Total Assets+	151.8M	149.06M	161.74M	179.84M	188.77M	204.31M	213.69M	217.04M	252.97M	242.79M
Asset Turnover	0.29x	0.37x	0.39x	0.41x	0.39x	0.45x	0.49x	0.58x	0.51x	0.60x
Asset Growth %	0.77%	-0.02%	0.09%	0.11%	0.05%	0.08%	0.05%	0.02%	0.17%	-0.04%
Total Current Liabilities+	16.02M	17.16M	19.83M	27.13M	27.83M	15.73M	19.79M	18.3M	21.47M	23.43M
Accounts Payable	1.86M	1.5M	4.09M	1.44M	1.19M	1.12M	909K	814K	3M	3.11M
Days Payables Outstanding	35.62	30.78	78.34	29.39	21.4	14.45	10.16	7.77	26.53	23.63
Short-Term Debt	10K	11K	11K	926K	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	571K
Other Current Liabilities	3.18M	2.66M	11.74M	3.46M	3.83M	760K	0	968K	1.06M	1.09M
Current Ratio	7.71x	7.13x	6.36x	4.41x	4.06x	9.10x	7.67x	8.63x	8.64x	7.41x
Quick Ratio	7.30x	6.87x	6.08x	4.15x	3.69x	8.36x	6.64x	7.08x	7.42x	6.35x
Cash Conversion Cycle	198.56	155.97	138.11	186.41	231.34	189.27	291.72	367.94	341.55	335.62
Total Non-Current Liabilities+	72.12M	66.77M	59.38M	39.33M	24.93M	16.96M	15.13M	13.4M	11.7M	9.35M
Long-Term Debt	38K	27K	16K	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	1.7M	12.56M	11.53M	16.44M	14.88M	13.28M	11.49M	9.3M
Deferred Tax Liabilities	2.36M	2.23M	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	718K	554K	0	236K	278K	430K	247K	121K	207K	57K
Total Liabilities	88.14M	83.93M	79.21M	66.46M	52.76M	32.69M	34.91M	31.7M	33.17M	32.78M
Total Debt+	48K	38K	27K	13.48M	12.56M	17.69M	16.44M	14.88M	13.28M	11.32M
Net Debt	-99.88M	-61.33M	-27.75M	-8.47M	-13.83M	-76.57M	-57.91M	-41.48M	-54.82M	-18.31M
Debt / Equity	0.00x	0.00x	0.00x	0.12x	0.09x	0.10x	0.09x	0.08x	0.06x	0.05x
Debt / EBITDA	-	0.01x	0.00x	0.97x	0.85x	0.48x	0.83x	0.48x	0.54x	0.44x
Net Debt / EBITDA	-	-15.19x	-4.00x	-0.61x	-0.94x	-2.09x	-2.93x	-1.33x	-2.21x	-0.72x
Interest Coverage	-280.74x	119.00x	1638.00x	9978.00x	-	-	-	-	-	-
Total Equity+	63.66M	65.13M	82.53M	113.38M	136.01M	171.62M	178.78M	185.34M	219.81M	210.01M
Equity Growth %	-0.09%	0.02%	0.27%	0.37%	0.2%	0.26%	0.04%	0.04%	0.19%	-0.04%
Book Value per Share	1.22	1.17	1.48	2.05	2.43	3.03	3.04	3.22	3.81	3.63
Total Shareholders' Equity	63.66M	65.13M	82.53M	113.38M	136.01M	171.62M	178.78M	185.34M	219.81M	210.01M
Common Stock	55K	57K	58K	59K	61K	62K	64K	64K	65K	66K
Retained Earnings	-59.31M	-58.27M	-45.92M	-14.47M	-3.55M	22.83M	37.1M	61.15M	82.66M	105.71M
Treasury Stock	-6.83M	-16.21M	-20.49M	-30.49M	-30.49M	-30.49M	-53.83M	-80.49M	-80.49M	-130.87M
Accumulated OCI	-64K	-118K	-125K	-133K	-37K	53K	-149K	-349K	-44K	98K
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	69.06M	4.96M	2.9M	7.57M	5.27M	16.87M	13.53M	12.63M	26.05M	20.52M
Operating CF Margin %	1.54%	0.09%	0.05%	0.1%	0.07%	0.18%	0.13%	0.1%	0.2%	0.14%
Operating CF Growth %	19.59%	-0.93%	-0.42%	1.61%	-0.3%	2.2%	-0.2%	-0.07%	1.06%	-0.21%
Net Income	-11.64M	1.03M	12.35M	22.09M	10.91M	26.39M	14.27M	24.05M	21.5M	23.05M
Depreciation & Amortization	3.84M	3.68M	3.67M	3.87M	4.39M	5.3M	5.94M	6.3M	5.75M	5.82M
Stock-Based Compensation	4.06M	3.26M	4.09M	5.24M	5.68M	4.79M	6.06M	6.51M	8.04M	10.32M
Deferred Taxes	-326K	-459K	-8.87M	-10.38M	1.42M	5.87M	-391K	1.16M	-61K	1.32M
Other Non-Cash Items	-1.91M	-257K	710K	1.44M	559K	3.12M	1.52M	479K	164K	-1.25M
Working Capital Changes	75.03M	-2.3M	-9.05M	-14.69M	-17.7M	-28.59M	-13.87M	-25.86M	-9.34M	-18.74M
Change in Receivables	-743K	-244K	-761K	1.92M	-2.68M	1.1M	-8.82M	-13.48M	-12.87M	-17.21M
Change in Inventory	1.95M	2.29M	-1.25M	-1.87M	-3.26M	-1.62M	-8.77M	-8.28M	1.35M	1.2M
Change in Payables	48K	-360K	2.12M	-2.27M	-373K	-205K	-155K	138K	2.63M	787K
Cash from Investing+	14.02M	-40.71M	-37.37M	-10.16M	-6.88M	46.6M	-20.56M	-6.95M	-19.11M	-15.65M
Capital Expenditures	-572K	-1.11M	-7.38M	-5.24M	-7.38M	-6.79M	-6.68M	-3.13M	-2.57M	-1.3M
CapEx % of Revenue	0.01%	0.02%	0.12%	0.07%	0.1%	0.07%	0.06%	0.02%	0.02%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	1.67M	-577K	1.54M	-5.24M	-7.38M	-6.79M	-6.68M	-40.86M	87K	133K
Cash from Financing+	1.37M	-2.79M	951K	-5.89M	5.96M	4.37M	-12.79M	-23.67M	4.79M	-43.28M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	0	0	-270K	-150K	-110K	-23K	0	0	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	68.48M	3.85M	-4.48M	2.33M	-2.11M	10.09M	6.85M	9.5M	23.49M	19.22M
FCF Margin %	1.53%	0.07%	-0.07%	0.03%	-0.03%	0.11%	0.07%	0.08%	0.18%	0.13%
FCF Growth %	11.91%	-0.94%	-2.16%	1.52%	-1.91%	5.77%	-0.32%	0.39%	1.47%	-0.18%
FCF per Share	1.31	0.07	-0.08	0.04	-0.04	0.18	0.12	0.16	0.41	0.33
FCF Conversion (FCF/Net Income)	-5.93x	4.80x	0.23x	0.34x	0.48x	0.64x	0.95x	0.53x	1.21x	0.89x
Interest Paid	42K	3K	2K	1K	0	0	0	0	0	0
Taxes Paid	24K	51K	57K	610K	52K	52K	76K	549K	505K	1.55M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-17.43%	1.61%	16.73%	22.55%	8.75%	17.15%	8.14%	13.21%	10.62%	10.73%
Return on Invested Capital (ROIC)	-97.22%	7.03%	8.39%	9.37%	6.85%	21.61%	9.61%	14.07%	9.25%	8.29%
Gross Margin	57.26%	67.38%	69.82%	76.01%	72.08%	69.32%	68.56%	69.56%	67.85%	66.87%
Net Margin	-26.03%	1.89%	19.55%	29.65%	14.98%	28.65%	13.73%	19.15%	16.75%	15.9%
Debt / Equity	0.00x	0.00x	0.00x	0.12x	0.09x	0.10x	0.09x	0.08x	0.06x	0.05x
Interest Coverage	-280.74x	119.00x	1638.00x	9978.00x	-	-	-	-	-	-
FCF Conversion	-5.93x	4.80x	0.23x	0.34x	0.48x	0.64x	0.95x	0.53x	1.21x	0.89x
Revenue Growth	46.96%	22.37%	15.43%	17.99%	-2.26%	26.44%	12.83%	20.87%	2.2%	12.93%

Revenue by Segment

	2017	2018	2019	2020	2021	2022	2023	2024
Water	-	-	-	-	-	-	127.72M	144.31M
Water Growth	-	-	-	-	-	-	-	12.98%
Emerging Technologies	-	-	-	-	-	-	980K	638K
Emerging Technologies Growth	-	-	-	-	-	-	-	-34.90%
Product	-	61.02M	72.83M	92.09M	103.9M	125.59M	-	-
Product Growth	-	-	19.35%	26.44%	12.83%	20.87%	-	-
License and Service	-	13.49M	-	-	-	-	-	-
License and Service Growth	-	-	-	-	-	-	-	-
Water	70.33M	-	-	-	-	-	-	-
Water Growth	-	-	-	-	-	-	-	-
Oil and Gas	11.88M	-	-	-	-	-	-	-
Oil and Gas Growth	-	-	-	-	-	-	-	-

Revenue by Geography

	2017	2018	2019	2020	2021	2022	2023	2024
Middle East And Africa	-	-	-	-	-	-	76.61M	90.67M
Middle East And Africa Growth	-	-	-	-	-	-	-	18.34%
Asia	-	-	-	-	-	-	30.5M	36.07M
Asia Growth	-	-	-	-	-	-	-	18.25%
Europe	-	-	-	-	-	-	6.03M	9.22M
Europe Growth	-	-	-	-	-	-	-	52.73%
Americas	-	-	-	-	-	-	15.2M	9M
Americas Growth	-	-	-	-	-	-	-	-40.81%
Water	-	-	-	-	-	86.23M	-	-
Water Growth	-	-	-	-	-	-	-	-
Water	-	-	46.57M	-	103.85M	-	-	-
Water Growth	-	-	-	-	-	-	-	-
Non-US	56.32M	59.38M	-	-	-	-	-	-
Non-US Growth	-	5.44%	-	-	-	-	-	-
UNITED STATES	1.84M	1.65M	-	-	-	-	-	-
UNITED STATES Growth	-	-10.55%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Energy Recovery, Inc. (ERII) has a price-to-earnings (P/E) ratio of 35.8x. This suggests investors expect higher future growth.

Growth & Financials

Energy Recovery, Inc. (ERII) reported $135.2M in revenue for fiscal year 2024. This represents a 382% increase from $28.0M in 2011.

Energy Recovery, Inc. (ERII) grew revenue by 12.9% over the past year. This is steady growth.

Yes, Energy Recovery, Inc. (ERII) is profitable, generating $19.5M in net income for fiscal year 2024 (15.9% net margin).

Dividend & Returns

Energy Recovery, Inc. (ERII) has a return on equity (ROE) of 10.7%. This is reasonable for most industries.

Energy Recovery, Inc. (ERII) generated $19.9M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.