ERII
Energy Recovery, Inc.

Energy Recovery, Inc.ERII

Industrials · Pollution & Treatment Controls
7.15USD
+6.56%
Nov 08, 2026
ERII overview ready
Supplier of Energy-Efficient Pressure Exchangers for Desalination and Water Reuse
ERII is a direct, specialized supplier of pressure-exchanger energy-recovery devices used primarily in seawater reverse-osmosis desalination, with a much smaller developing wastewater offering.
Primary theme is improving
Water Infrastructure is improving (+15.7pp vs SPY over 21 sessions; 8 of 9 members ahead of SPY).
Price trend is broken
Longer-term context reads early recovery, with a near-term setup of reclaim attempt.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Declining revenue growth.
Market Nov 6Filing Sep 30Price action Nov 7Research Nov 2

Conviction Level

PriceAction6.3BusinessPerformance—BusinessQuality7.7Valuation8.7ThemeMomentum7.0This company's quarterly revenue could not be confirmed, so no trend is shown rather than a possibly misleading one.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+15.7pp
Theme return
+10.7%
Beating SPY
8 of 9
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads early recovery, with a near-term setup of reclaim attempt.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$363.0M
Avg Volume (60D)
920.1K
60 sessions
Revenue Growth YoY
-6.9%
FY2025 vs FY2024
Gross Margin
+61.0%
Trailing twelve months
Operating Margin
+0.8%
Trailing twelve months
Free Cash Flow Yield
+8.9%
Distance from 200DMA
-24.1%
P/E
70.7x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Insufficient evidence

This company's quarterly revenue could not be confirmed, so no trend is shown rather than a possibly misleading one.

Latest reported: Q3 FY2026, ended Sep 30

Business Quality

7.7 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says cheap; peers is the dissenting view.
Energy Recovery, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 8.9% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
ERII is a direct, specialized supplier of pressure-exchanger energy-recovery devices used primarily in seawater reverse-osmosis desalination, with a much smaller developing wastewater offering.
Opportunity
Moderate opportunity
Investment in desalination and advanced water-reuse capacity where lower energy consumption, operating cost, and lifecycle reliability improve the economics of producing potable and industrial water from saline or impaired sources.
Key risk
Declining revenue growth.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Pollution & Treatment Controls
What they do

Energy Recovery, Inc. designs, manufactures, and sells energy efficiency technology solutions focused on water treatment applications globally, operating through Water and Emerging Technologies segments.

How it earns

The company generates revenue primarily through transactional sales of equipment and related technologies to water treatment facilities and projects.

Products & services
High and low pressure exchangers
Hydraulic turbochargers
High-pressure feed and circulation pumps
Customers & end markets
Reverse-osmosis desalination plants
Wastewater treatment facilities
Market position

Niche player specializing in energy recovery equipment for high-pressure water treatment applications.

Demand drivers
Medium cyclicality

Business is influenced by capital spending cycles in water infrastructure and regional water scarcity conditions.

Peers

Companies validated as economically comparable to ERII — similar business, revenue model and scale.
PRICE ACTIONVALUATIONTHEME
Xylem Inc.Damaged Structure — Distribution PressureFair8.0HighUnavailableNot in RS poolLocked$97.83−2.22%
Pentair plcEarly Recovery — Reclaim AttemptFair6.0MediumUnavailableNot in RS poolLocked$68.12−2.36%
Veralto CorporationNew Trend — Daily AdvanceExpensive8.0HighUnavailableNot in RS poolLocked$117.09+0.46%