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Energy Recovery, Inc. ERII

Nasdaq · stock · Special Industry Machinery, NEC · website · IPO 2008-07-02 · LEI

Energy Recovery, Inc. statistics & valuation

Market cap$454.6M
P / E19.8×
P / S3.4×
P / B2.2×
P / FCF26.1×
Net margin17.0%
Return on equity11.1%
FCF margin12.9%
Return on capital11.2%
Graham number -22.9%$6.00

Market cap as of 2026-06-29. Multiples are price-derived and refreshed daily; everything else from the latest financial reports. The Graham number is Benjamin Graham's rough maximum fair value ($6.00); a green figure means the price is below it.

Profitability & efficiency

Net margin (%)
6.40% 26.60% 29.60% 12.60% 22.20% 13.70% 19.10% 16.80% 15.90% 17.00% 2016201720182019202020212022202320242025
Gross margin (%)
55.10% 56.60% 68.60% 69.60% 67.80% 66.90% 65.10% 2016201720182019202020212022202320242025
Operating margin (%)
5.90% 13.40% 13.40% 11.90% 26.30% 13.30% 19.80% 14.80% 13.60% 17.70% 2016201720182019202020212022202320242025
Return on equity (%)
5.40% 20.00% 19.50% 8.00% 15.40% 8.00% 13.00% 9.80% 11.00% 11.10% 2016201720182019202020212022202320242025
Shares outstanding
55.5M 55.6M 55.3M 56.1M 56.6M 58.7M 57.6M 57.7M 57.8M 54.2M 2016201720182019202020212022202320242025
Net debt ($)
-$61.3M -$27.8M -$22.0M 2016201720182019202020212022202320242025
Share buybacks ($)
2016201720182019202020212022202320242025
Return on assets (%)
2.50% 11.20% 12.30% 5.80% 12.90% 6.70% 11.10% 8.50% 9.50% 9.90% 2016201720182019202020212022202320242025
Free cash flow margin (%)
6.70% -6.50% 3.10% -2.40% 8.50% 6.60% 6.70% 18.30% 13.30% 12.90% 2016201720182019202020212022202320242025
Debt / equity (×)
0.00× 0.00× 0.00× 2016201720182019202020212022202320242025
EPS ($)
$0.07 $0.33 $0.40 $0.19 $0.47 $0.24 $0.42 $0.37 $0.40 $0.42 2016201720182019202020212022202320242025

Margins and returns computed from annual filings. Falling shares outstanding = buybacks; rising = dilution. Net debt = debt − cash (negative = net cash).

P / E vs its own history

Energy Recovery, Inc. trades at about 18.5× earnings — below its 10-year norm (10-year range 19×–146.3×, median 41.9×).

18.5× 146.3×

Shaded band = 10-year range (19×–146.3×); dot = today's 18.5×.

Historical P/E = month-end price near each fiscal year-end ÷ that year's EPS. A read on whether the stock is cheap or dear relative to how it has typically been valued — not a forecast.

Key ratios (by fiscal year)

RatioFY2025FY2024FY2023FY2022FY2021FY2020FY2019FY2018FY2017FY2016
Gross margin65.1%66.9%67.8%69.6%68.6%———56.6%55.1%
Operating margin17.7%13.6%14.8%19.8%13.3%26.3%11.9%13.4%13.4%5.9%
Net margin17.0%15.9%16.8%19.1%13.7%22.2%12.6%29.6%26.6%6.4%
FCF margin12.9%13.3%18.3%6.7%6.6%8.5%-2.4%3.1%-6.5%6.7%
Return on assets9.9%9.5%8.5%11.1%6.7%12.9%5.8%12.3%11.2%2.5%
Return on equity11.1%11.0%9.8%13.0%8.0%15.4%8.0%19.5%20.0%5.4%
Debt / equity———————0.00×0.00×0.00×
Current ratio10.447.418.648.637.679.104.064.414.157.13

Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.