Energy Recovery, Inc. (ERII)Industrials | Pollution & Treatment Controls | San Leandro, United States | NasdaqGS
6.65 USD
+0.01
(0.151%)
⇧
(Oct. 16, 2026, 4 p.m.
EDT)
After hours: 6.74 +0.09 (1.284%) ⇧ (Oct. 16, 2026, 4:20 p.m. EDT) |
Hot Take ↕ | Oct. 10, 2026, 5:28 a.m. EDT
The investment case for Energy Recovery is currently broken by a severe disconnect between its operational reality and its market valuation. While the company boasts a fortress-like balance sheet with a current ratio of 8.05 and significant free cash flow, the business fundamentals are deteriorating rapidly. Revenue has contracted by 57%, and operating margins have collapsed into negative territory at -42%. This is not a cyclical downturn; it is a structural failure of the core business model, evidenced by the massive gap between the forward P/E (20x) and the trailing P/E (26x), implying analysts expect earnings to vanish entirely. The market has already punished the stock, sending it down 62% from its 52-week high, yet the valuation remains unjustified. A price-to-book of 2.0x is dangerous when the company is burning cash on operations and shrinking top-line sales. The recent news of an SEC investigation adds a layer of legal risk that compounds the fundamental rot. Speculators are clearly betting against the stock, with heavy put open interest signaling a fear of further downside. There is no dividend to provide a floor, and the lack of analyst coverage suggests the stock has been abandoned by institutional capital. Until the company can demonstrate a path to restoring positive operating margins and stabilizing revenue growth, this remains a high-risk speculative vehicle with no margin of safety. |
| Model | MAE |
|---|---|
| AutoTheta ✓ | 0.091148 |
| AutoARIMA | 0.104373 |
| AutoETS | 0.104708 |
| MSTL | 0.106279 |
Forecast horizon: 45 days | Selected: AutoTheta
| Forecast Reliability | |
|---|---|
| Score | 36% |
| H-stat | 9.99 |
| Ljung-Box p | 0.000 |
| Jarque-Bera p | 0.630 |
| Excess Kurtosis | -0.60 |
| Attribute | Value |
|---|---|
| Sector | Industrials |
| Debt to Equity Ratio | 4.773 |
| Revenue per Share | 2.295 |
| Market Cap | 339,448,416 |
| Trailing P/E | 25.58 |
| Forward P/E | 19.85 |
| Beta | 0.91 |
| Profit Margins | 12.72% |
| Website | https://www.energyrecovery.com |
As of Oct. 10, 2026, 5:28 a.m. EDT: Options activity reveals a distinct asymmetry favoring downside protection. Put open interest is heavily concentrated in-the-money across multiple expirations (Nov 2026, Feb 2027), with massive volume relative to call activity. Call open interest is skewed toward far-out-of-the-money strikes (20.00 in Nov 2026), suggesting speculative hopes for a massive rally rather than near-term conviction. Implied volatility is elevated on both sides, indicating uncertainty, but the sheer weight of put positioning suggests speculators are positioning for further declines.
| Attribute | Value |
|---|---|
| 52 Week Change | -0.6095126 |
| Address1 | 1,717 Doolittle Drive |
| All Time High | 30.76 |
| All Time Low | 1.95 |
| Ask | 8.51 |
| Ask Size | 2 |
| Audit Risk | 8 |
| Average Daily Volume10 Day | 788,840 |
| Average Daily Volume3 Month | 939,345 |
| Average Volume | 939,345 |
| Average Volume10Days | 788,840 |
| Beta | 0.909 |
| Bid | 4.89 |
| Bid Size | 2 |
| Board Risk | 3 |
| Book Value | 3.37 |
| City | San Leandro |
| Compensation As Of Epoch Date | 1,767,139,200 |
| Compensation Risk | 6 |
| Country | United States |
| Crypto Tradeable | 0 |
| Currency | USD |
| Current Price | 6.65 |
| Current Ratio | 8.052 |
| Custom Price Alert Confidence | HIGH |
| Date Short Interest | 1,790,726,400 |
| Day High | 6.81 |
| Day Low | 6.62 |
| Debt To Equity | 4.773 |
| Display Name | Energy Recovery |
| Dividend Yield | 0.0 |
| Earnings Call Timestamp End | 1,793,822,400 |
| Earnings Call Timestamp Start | 1,793,822,400 |
| Earnings Timestamp | 1,793,822,400 |
| Earnings Timestamp End | 1,793,822,400 |
| Earnings Timestamp Start | 1,793,822,400 |
| Ebitda | 23,526,000 |
| Ebitda Margins | 0.19511999 |
| Enterprise To Ebitda | 10.823 |
| Enterprise To Revenue | 2.112 |
| Enterprise Value | 254,625,424 |
| Eps Current Year | -0.02 |
| Eps Forward | 0.335 |
| Eps Trailing Twelve Months | 0.26 |
| Esg Populated | 0 |
| Exchange | NMS |
| Exchange Data Delayed By | 15 |
| Exchange Timezone Name | America/New_York |
| Exchange Timezone Short Name | EDT |
| Fax | 510 483 7371 |
| Fifty Day Average | 7.3382 |
| Fifty Day Average Change | -0.6882 |
| Fifty Day Average Change Percent | -0.093783215 |
| Fifty Two Week Change Percent | -60.951263 |
| Fifty Two Week High | 18.32 |
| Fifty Two Week High Change | -11.67 |
| Fifty Two Week High Change Percent | -0.6370087 |
| Fifty Two Week Low | 6.6 |
| Fifty Two Week Low Change | 0.05000019 |
| Fifty Two Week Low Change Percent | 0.0075757867 |
| Fifty Two Week Range | 6.6 - 18.32 |
| Financial Currency | USD |
| First Trade Date Milliseconds | 1,215,005,400,000 |
| Float Shares | 49,195,009 |
| Forward Eps | 0.335 |
| Forward P E | 19.850746 |
| Free Cashflow | 36,359,124 |
| Full Exchange Name | NasdaqGS |
| Full Time Employees | 230 |
| Fullday Change | 0.09540033 |
| Fullday Change Percent | 1.4367521 |
| Fullday Price | 6.65 |
| Gmt Off Set Milliseconds | -14,400,000 |
| Governance Epoch Date | 1,790,812,800 |
| Gross Margins | 0.65363 |
| Gross Profits | 78,810,000 |
| Has Pre Post Market Data | 1 |
| Held Percent Insiders | 0.02145 |
| Held Percent Institutions | 0.97796 |
| Implied Shares Outstanding | 51,044,875 |
| Industry | Pollution & Treatment Controls |
| Industry Disp | Pollution & Treatment Controls |
| Industry Key | pollution-treatment-controls |
| Ir Website | http://ir.energyrecovery.com/phoenix.zhtml?c=221013&p=irol-IRHome |
| Is Earnings Date Estimate | 0 |
| Language | en-US |
| Last Fiscal Year End | 1,767,139,200 |
| Long Business Summary | Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation pumps for use in water treatment industries, including seawater and brackish desalination, and wastewater treatment. It also provides PX G1300, which reduces energy consumption and operating costs of carbon dioxide-based refrigeration systems; and spare parts, as well as repair, field, and commissioning services. The company sells its products under the ERI, PX, PX Pressure Exchanger, Pressure Exchanger, Ultra High-Pressure PX, PX G1300, PX PowerTrain, PX G, AT, and Aquabold brands to supermarket chains, cold storage facilities, refrigeration system installers or OEMs, and other industrial users; and aftermarket customers consisting of desalination plant owners and operators. Energy Recovery, Inc. was incorporated in 1992 and is headquartered in San Leandro, California. |
| Long Name | Energy Recovery, Inc. |
| Market | us_market |
| Market Cap | 339,448,416 |
| Market State | CLOSED |
| Max Age | 86,400 |
| Message Board Id | finmb_42952210 |
| Most Recent Quarter | 1,782,777,600 |
| Net Income To Common | 15,339,000 |
| Next Fiscal Year End | 1,798,675,200 |
| Non Diluted Market Cap | 347,105,150 |
| Number Of Analyst Opinions | 2 |
| Open | 6.66 |
| Operating Cashflow | 41,289,000 |
| Operating Margins | -0.41922 |
| Overall Risk | 5 |
| Payout Ratio | 0.0 |
| Peg Ratio | 3.33 |
| Phone | 510 483 7370 |
| Post Market Change | 0.085400105 |
| Post Market Change Percent | 1.2842121 |
| Post Market Price | 6.7354 |
| Post Market Time | 1,792,182,002 |
| Previous Close | 6.64 |
| Price Eps Current Year | -332.5 |
| Price Hint | 2 |
| Price To Book | 1.9732939 |
| Price To Sales Trailing12 Months | 2.8152938 |
| Profit Margins | 0.12722 |
| Quick Ratio | 5.781 |
| Quote Source Name | Nasdaq Real Time Price |
| Quote Type | EQUITY |
| Recommendation Key | none |
| Region | US |
| Regular Market Change | 0.0100002 |
| Regular Market Change Percent | 0.150606 |
| Regular Market Day High | 6.81 |
| Regular Market Day Low | 6.62 |
| Regular Market Day Range | 6.62 - 6.81 |
| Regular Market Open | 6.66 |
| Regular Market Previous Close | 6.64 |
| Regular Market Price | 6.65 |
| Regular Market Time | 1,792,180,801 |
| Regular Market Volume | 888,168 |
| Return On Assets | 0.06004 |
| Return On Equity | 0.085769996 |
| Revenue Growth | -0.572 |
| Revenue Per Share | 2.295 |
| Sand P52 Week Change | 0.13723719 |
| Sector | Industrials |
| Sector Disp | Industrials |
| Sector Key | industrials |
| Share Holder Rights Risk | 6 |
| Shares Outstanding | 51,044,875 |
| Shares Percent Shares Out | 0.0651 |
| Shares Short | 3,321,523 |
| Shares Short Previous Month Date | 1,788,134,400 |
| Shares Short Prior Month | 3,365,267 |
| Short Name | Energy Recovery, Inc. |
| Short Percent Of Float | 0.073699996 |
| Short Ratio | 3.04 |
| Source Interval | 15 |
| State | CA |
| Symbol | ERII |
| Target High Price | 8.0 |
| Target Low Price | 8.0 |
| Target Mean Price | 8.0 |
| Target Median Price | 8.0 |
| Total Cash | 93,056,000 |
| Total Cash Per Share | 1.823 |
| Total Debt | 8,233,000 |
| Total Revenue | 120,573,000 |
| Tradeable | 0 |
| Trailing Annual Dividend Rate | 0.0 |
| Trailing Annual Dividend Yield | 0.0 |
| Trailing Eps | 0.26 |
| Trailing P E | 25.576925 |
| Trailing Peg Ratio | None |
| Triggerable | 1 |
| Two Hundred Day Average | 9.9656 |
| Two Hundred Day Average Change | -3.3156 |
| Two Hundred Day Average Change Percent | -0.33270448 |
| Type Disp | Equity |
| Volume | 888,168 |
| Website | https://www.energyrecovery.com |
| Zip | 94,577 |