Energy Recovery, Inc. (ERII) Financial Ratios
20 years of historical data (2006–2025) · Industrials · Industrial - Pollution & Treatment Controls
EV/EBITDA
↓
20.30
↓-48% vs avg
5yr avg: 39.23
30Y Low19.0·High66.1
P/FCF
↓
35.17
↓-60% vs avg
5yr avg: 88.21
30Y Low5.4·High184.3
P/B Ratio
↓
3.05
↓-41% vs avg
5yr avg: 5.19
30Y Low1.4·High8.8
ROE
↑
11.0%
↓+3% vs avg
5yr avg: 10.7%
30Y Low-24%·High41%
Debt/EBITDA
↓
0.33
↓-36% vs avg
5yr avg: 0.52
30Y Low0.0·High2.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ERII Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Energy Recovery, Inc. trades at 27.6x earnings, 46% below its 5-year average of 51.6x, sitting at the 17th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 7%. On a free-cash-flow basis, the stock trades at 35.2x P/FCF, 60% below the 5-year average of 88.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $613M | $731M | $850M | $1.1B | $1.2B | $1.3B | $773M | $549M | $372M | $487M | $574M |
| Enterprise Value | $575M | $692M | $832M | $1.0B | $1.1B | $1.2B | $696M | $535M | $364M | $459M | $513M |
| P/E Ratio → | 27.64 | 32.12 | 36.75 | 50.92 | 48.79 | 89.54 | 29.02 | 51.53 | 16.82 | 26.52 | 147.86 |
| P/S Ratio | 4.55 | 5.42 | 5.86 | 8.48 | 9.40 | 12.15 | 8.39 | 7.54 | 5.00 | 7.70 | 10.49 |
| P/B Ratio | 3.05 | 3.54 | 4.05 | 4.95 | 6.37 | 7.06 | 4.50 | 4.04 | 3.28 | 5.90 | 8.81 |
| P/FCF | 35.17 | 41.89 | 44.21 | 46.32 | 124.31 | 184.31 | 76.60 | — | 159.84 | — | 148.95 |
| P/OCF | 32.68 | 38.92 | 41.42 | 41.75 | 93.51 | 93.30 | 45.79 | 104.19 | 49.23 | 168.08 | 115.59 |
P/E links to full P/E history page with 30-year chart
ERII EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Energy Recovery, Inc.'s enterprise value stands at 20.3x EBITDA, 48% below its 5-year average of 39.2x. The Industrials sector median is 13.9x, placing the stock at a 46% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.14 | 5.74 | 8.05 | 9.07 | 11.59 | 7.56 | 7.35 | 4.88 | 7.27 | 9.37 |
| EV / EBITDA | 20.30 | 24.44 | 32.56 | 41.66 | 36.61 | 60.90 | 19.02 | 36.25 | 26.30 | 66.10 | 126.97 |
| EV / EBIT | 23.40 | 25.07 | 37.46 | 54.23 | 45.90 | 87.05 | 20.70 | 51.63 | 31.81 | 49.61 | 137.94 |
| EV / FCF | — | 39.68 | 43.26 | 43.98 | 119.94 | 175.85 | 69.01 | — | 156.20 | — | 133.04 |
ERII Profitability
Margins and return-on-capital ratios measuring operating efficiency
Energy Recovery, Inc. earns an operating margin of 18.2%, above the Industrials sector average of 4.9%. Operating margins have expanded from 14.8% to 18.2% over the past 3 years, signaling improving operational efficiency. ROE of 11.0% is modest. ROIC of 10.3% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.2% | 65.2% | 66.9% | 67.8% | 69.6% | 68.6% | 69.3% | 72.1% | 76.0% | 69.8% | 67.4% |
| Operating Margin | 18.2% | 18.2% | 13.6% | 14.8% | 19.8% | 13.3% | 34.0% | 14.2% | 13.4% | 5.2% | 0.7% |
| Net Profit Margin | 17.0% | 17.0% | 15.9% | 16.8% | 19.1% | 13.7% | 28.7% | 15.0% | 29.6% | 19.6% | 1.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.0% | 11.0% | 10.7% | 10.6% | 13.2% | 8.1% | 17.2% | 8.8% | 22.6% | 16.7% | 1.6% |
| ROA | 9.7% | 9.7% | 9.3% | 9.2% | 11.2% | 6.8% | 13.4% | 5.9% | 12.9% | 7.9% | 0.7% |
| ROIC | 10.3% | 10.3% | 8.3% | 9.3% | 14.1% | 9.6% | 21.6% | 6.8% | 9.4% | 8.4% | 7.0% |
| ROCE | 11.3% | 11.3% | 8.7% | 8.9% | 12.6% | 7.2% | 17.9% | 6.6% | 6.8% | 2.4% | 0.3% |
ERII Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Energy Recovery, Inc. carries a Debt/EBITDA ratio of 0.3x, which is very conservative (89% below the sector average of 3.2x). The company holds a net cash position — cash of $48M exceeds total debt of $9M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.05 | 0.06 | 0.08 | 0.09 | 0.10 | 0.09 | 0.12 | 0.00 | 0.00 |
| Debt / EBITDA | 0.33 | 0.33 | 0.44 | 0.54 | 0.48 | 0.83 | 0.48 | 0.85 | 0.97 | 0.00 | 0.01 |
| Net Debt / Equity | — | -0.19 | -0.09 | -0.25 | -0.22 | -0.32 | -0.45 | -0.10 | -0.07 | -0.34 | -0.94 |
| Net Debt / EBITDA | -1.36 | -1.36 | -0.72 | -2.21 | -1.33 | -2.93 | -2.09 | -0.94 | -0.61 | -4.00 | -15.19 |
| Debt / FCF | — | -2.22 | -0.95 | -2.33 | -4.37 | -8.46 | -7.59 | — | -3.64 | — | -15.92 |
| Interest Coverage | — | — | — | — | — | — | — | — | 11441.00 | 4624.50 | 1238.67 |
Net cash position: cash ($48M) exceeds total debt ($9M)
ERII Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Energy Recovery, Inc.'s current ratio of 10.44x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 9.04x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 8.64x to 10.44x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 10.44 | 10.44 | 7.41 | 8.64 | 8.63 | 7.67 | 9.10 | 4.06 | 4.41 | 6.36 | 7.13 |
| Quick Ratio | 9.04 | 9.04 | 6.35 | 7.42 | 7.08 | 6.64 | 8.36 | 3.69 | 4.15 | 6.08 | 6.87 |
| Cash Ratio | 4.34 | 4.34 | 3.33 | 5.06 | 4.91 | 5.34 | 7.29 | 3.06 | 3.51 | 4.93 | 5.85 |
| Asset Turnover | — | 0.58 | 0.60 | 0.51 | 0.58 | 0.49 | 0.45 | 0.39 | 0.41 | 0.39 | 0.37 |
| Inventory Turnover | 1.93 | 1.93 | 1.93 | 1.58 | 1.35 | 1.60 | 2.40 | 1.97 | 2.50 | 3.46 | 3.92 |
| Days Sales Outstanding | — | 207.67 | 169.92 | 136.82 | 104.92 | 74.15 | 51.93 | 67.55 | 70.02 | 110.86 | 93.70 |
ERII Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Energy Recovery, Inc. returns 5.8% to shareholders annually primarily through share buybacks. The earnings yield of 3.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 3.1% | 2.7% | 2.0% | 2.0% | 1.1% | 3.4% | 1.9% | 5.9% | 3.8% | 0.7% |
| FCF Yield | 2.8% | 2.4% | 2.3% | 2.2% | 0.8% | 0.5% | 1.3% | — | 0.6% | — | 0.7% |
| Buyback Yield | 5.8% | 4.9% | 5.9% | 0.0% | 2.3% | 1.8% | 0.0% | 0.0% | 2.7% | 0.9% | 1.6% |
| Total Shareholder Yield | 5.8% | 4.9% | 5.9% | 0.0% | 2.3% | 1.8% | 0.0% | 0.0% | 2.7% | 0.9% | 1.6% |
| Shares Outstanding | — | $54M | $58M | $58M | $58M | $59M | $57M | $56M | $55M | $56M | $55M |
Peer Comparison
Compare ERII with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ERIIYou | $613M | 27.6 | 20.3 | 35.2 | 65.2% | 18.2% | 11.0% | 10.3% | 0.3 |
 FELE | $4B | 31.1 | 14.0 | 23.0 | 35.5% | 12.7% | 11.3% | 14.7% | 0.8 |
 PUMP | $2B | 2021.8 | 10.8 | 45.5 | 9.9% | 1.5% | 0.1% | 1.4% | 1.3 |
 HLIO | $2B | 48.1 | 18.2 | 22.3 | 32.3% | 7.9% | 5.4% | 4.4% | 0.9 |
 PNR | $13B | 20.2 | 14.8 | 17.3 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
 XYL | $28B | 30.3 | 15.9 | 31.0 | 38.5% | 13.5% | 8.5% | 7.6% | 1.1 |
 MSEX | $950M | 21.7 | 15.7 | — | 39.2% | 27.9% | 9.1% | 4.7% | 4.8 |
 CWCO | $527M | — | -4.7 | 0.0 | 36.6% | 13901508.9% | 0.0% | 26.6% | 0.0 |
 CDZI | $356M | -8.9 | — | — | 24.0% | -242.0% | -84.2% | -17.5% | — |
 DHR | $124B | 34.7 | 18.1 | 23.5 | 60.9% | 20.9% | 7.1% | 5.9% | 2.4 |
 EMR | $83B | 36.6 | 18.9 | 31.2 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonERII — Frequently Asked Questions
Quick answers to the most common questions about buying ERII stock.
What is Energy Recovery, Inc.'s P/E ratio?
Energy Recovery, Inc.'s current P/E ratio is 27.6x. The historical average is 55.9x. This places it at the 17th percentile of its historical range.
What is Energy Recovery, Inc.'s EV/EBITDA?
Energy Recovery, Inc.'s current EV/EBITDA is 20.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.9x.
What is Energy Recovery, Inc.'s ROE?
Energy Recovery, Inc.'s return on equity (ROE) is 11.0%. The historical average is 6.3%.
Is ERII stock overvalued?
Based on historical data, Energy Recovery, Inc. is trading at a P/E of 27.6x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Energy Recovery, Inc.'s profit margins?
Energy Recovery, Inc. has 65.2% gross margin and 18.2% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Energy Recovery, Inc. have?
Energy Recovery, Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.