Energy Recovery Inc (ERII)

NASD · Industrials · Pollution & Treatment Controls · USA

Energy Recovery Inc is a small cap company (market value between $300 million and $2 billion) in the Pollution & Treatment Controls industry.

Energy Recovery designs and manufactures energy-saving technology using proprietary pressure exchanger devices for critical infrastructure across multiple industries. The company's pressure exchangers capture and transfer pressure energy in water treatment applications including seawater and brackish desalination, wastewater treatment, and industrial processes. Energy Recovery serves customers globally through direct sales and technical support.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Energy Recovery Inc stock.

Our verdict on ERII

Overvalued: intrinsic value $4.38 per share, market price $6.64, margin of safety -51.4% (as of 2026-10-20).

Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $4.38; the price of $6.64 is 51% above that value, and 73% of that value comes from beyond year five.

Leak Score: 67/100 on 11 of 12 signals (Faint Leak).

ETFs with the most weight in ERII

17 more funds hold it; the full list is part of the paid plan.

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Is ERII undervalued or overvalued?

ERII is overvalued (as of the 2026-10-20 close). Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $4.38; the price of $6.64 is 51% above that value, and 73% of that value comes from beyond year five.

What is the intrinsic value of ERII?

$4.38 per share (as of the 2026-10-20 close), against a market price of $6.64. That is a margin of safety of -51.4%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What is Energy Recovery Inc's Leak Score?

67 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.