ERII

Based on Energy Recovery, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does Energy Recovery do?

Energy Recovery designs and manufactures devices that capture wasted pressure energy in industrial fluid systems and put it back to work. Its primary market is seawater desalination, where its Pressure Exchanger technology reduces the energy cost of producing fresh water. The company is also expanding into CO2 refrigeration and industrial wastewater treatment.

Does ERII pay dividends?

No, Energy Recovery does not currently pay a dividend. The company retains earnings to fund operations and expand its emerging technologies segment. Investors seeking regular income should note this before investing.

When does ERII report earnings?

Energy Recovery follows a standard quarterly earnings cadence for US-listed companies. Specific dates are not covered by our data source — check the company's investor relations page for the current reporting schedule.

Is ERII a good stock to buy?

UQS Score rates ERII as Good overall. The Risk pillar is Strong and both Quality and Valuation rate as Good, which are constructive signals. However, the Moat and Growth pillars are both Weak, indicating areas of concern. Whether that profile fits your investment goals depends on your own risk tolerance and time horizon.

Is ERII overvalued?

The UQS Valuation pillar rates ERII as Good, suggesting the stock is not obviously overpriced relative to its fundamentals. That said, valuation is one of five pillars — the full picture requires weighing it alongside Quality, Growth, Moat, and Risk. Pro members can view the complete breakdown.

How does ERII compare to its competitors?

Energy Recovery occupies a specialized niche in pressure energy recovery for desalination, which differentiates it from broader environmental services peers like CECO Environmental or geographically focused players like Euro Tech Holdings. Its Weak Moat rating, however, suggests that competitive advantages may not be as durable as the niche positioning implies.

What is ERII's market cap bracket?

Energy Recovery is classified as a small-cap company. This means it carries higher volatility risk than large- or mega-cap industrials, but may also offer more room for growth if its emerging technologies segment gains commercial traction.

Who founded Energy Recovery?

Energy Recovery was incorporated in 1992. Details on its founding team are publicly available through the company's official history and SEC filings for investors who want to research the leadership background.

Is ERII a long-term quality stock?

As a long-term quality indicator, ERII's profile is mixed. The Strong Risk rating and Good Quality score suggest financial resilience, but the Weak Moat and Weak Growth ratings raise questions about whether the business can compound value over time. The emerging technologies segment could change that picture, but it remains unproven at scale.

What is the main competitive advantage of Energy Recovery?

Energy Recovery's core advantage is its Pressure Exchanger technology, which is deeply embedded in large-scale desalination infrastructure. Switching costs in installed plants are high. However, the UQS Moat pillar rates as Weak, suggesting that this advantage may face pressure as the competitive landscape evolves.

What sector does ERII belong to?

Energy Recovery is classified in the Industrials sector. More specifically, it operates at the intersection of water infrastructure and energy efficiency technology — a niche that also draws interest from environmental and clean-technology investors.

Is ERII a growth stock or value stock?

Based on UQS pillar labels, ERII leans toward neither cleanly. The Growth pillar rates as Weak, which is not typical of a high-growth name, while the Valuation pillar rates as Good rather than deeply discounted. It sits in a middle ground that the full UQS analysis helps clarify for Pro members.

Energy Recovery, Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.

Energy Recovery, Inc. faces growth headwinds with declining or stagnant revenue trends.

Energy Recovery, Inc. carries minimal financial risk with conservative leverage and strong solvency.

Energy Recovery, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Energy Recovery, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ERII.

The UQS (Unified Quality Score) for Energy Recovery, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Energy Recovery, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Energy Recovery, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.