Energy Recovery Inc (ERII) Stock Analysis
Verdict: AVOID
Desalination dominance is eclipsed by flat growth, heavy insider selling, and high-magnitude earnings misses as the pivot to CO2 stalls.
Investment score: 38/100
Analysis as of
Is Energy Recovery Inc stock worth reviewing? AI model thesis
ERII is a high-margin market leader currently plagued by stagnant growth and poor execution. Heavy insider selling and repeated earnings misses suggest the bottom is not yet in despite the 42% 90-day drawdown.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Energy Recovery Inc opportunities and risks
What speaks for ERII
- Dominant SWRO Market Position
What speaks against ERII
- Deteriorating Earnings Reliability
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ERII | 21.5x | 3.2x | 10.1x | 64.3% | 15.1% | 6.3% |
| MUEL | 12.5x | 2.0x | 11.1x | 30.7% | 10.9% | 3.2% |
| MEC | n/a | 0.9x | 16.1x | 8.3% | -2.9% | 2.8% |
| DDD | 6.9x | 1.1x | 4.5x | 33.9% | 16.1% | -15.9% |
| PKOH | 17.2x | 0.3x | 9.4x | 17.1% | 1.5% | 0.1% |
| VELO | n/a | 7.1x | 339.7x | -11.3% | -104.9% | -5251.5% |
| Peer median | 6.9x | 1.1x | 11.1x | 17.1% | 1.5% | 0.1% |
Frequently asked questions about Energy Recovery Inc (ERII)
Is ERII stock a good investment?
The cached TradeMates AI model rates Energy Recovery Inc as AVOID with an investment score of 38/100. ERII is a high-margin market leader currently plagued by stagnant growth and poor execution. Heavy insider selling and repeated earnings misses suggest the bottom is not yet in despite the 42% 90-day drawdown. This is algorithmic model output, not personal investment advice.
Is ERII stock a buy?
The TradeMates model verdict for ERII is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.