ERII

Energy Recovery, Inc.

Industrials · $346M market cap

Verdict

Share price

$6.77

close of Oct 3, 2026

Fair value

$4.68

Sticker Price

Payback Price

$1.87

buy price

Overpriced

ERII is Overpriced: at $6.77 it trades 45% above its fair value of $4.68. Its buy price (Payback Price) is $1.87, 72% below today's price. Business quality is solid: 3 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew 2% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

3 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth12.3% a year✓
Equity per share growth5.5% a year✗
Sales growth10.3% a year✓
Free cash flow growth11.6% a year✓
Return on invested capital8.4%✗

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Insider activity

Since May 6, 2026: 1 open-market purchase worth $99K, 3 sales worth $193K and 5 other filings (stock awards, tax withholding and similar). Why purchases matter

Purchases

Sales

Other filings

About Energy Recovery, Inc.

Energy Recovery, Inc. (ERII) is a global technology firm that engineers, manufactures, and distributes cutting-edge solutions predominantly for the seawater reverse osmosis (SWRO) desalination and industrial wastewater treatment industries. The company manages its operations through two distinct divisions: Water and Emerging Technologies. Its extensive product range includes advanced energy recovery devices…

Industrial - Pollution & Treatment Controls

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works