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Upturn AI SWOT - About
ERII 
Energy Recovery Inc (ERII)
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Upturn Advisory Summary
03/27/2025: ERII (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -33.42% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 876.54M USD | Price to earnings Ratio 39.88 | 1Y Target Price 19.67 |
Price to earnings Ratio 39.88 | 1Y Target Price 19.67 | ||
Volume (30-day avg) 420301 | Beta 1.21 | 52 Weeks Range 12.26 - 20.27 | Updated Date 03/30/2025 |
52 Weeks Range 12.26 - 20.27 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.4 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.9% | Operating Margin (TTM) 41.88% |
Management Effectiveness
Return on Assets (TTM) 5.6% | Return on Equity (TTM) 10.73% |
Valuation
Trailing PE 39.88 | Forward PE 20.45 | Enterprise Value 809835114 | Price to Sales(TTM) 6.05 |
Enterprise Value 809835114 | Price to Sales(TTM) 6.05 | ||
Enterprise Value to Revenue 5.59 | Enterprise Value to EBITDA 28.9 | Shares Outstanding 54955300 | Shares Floating 53718811 |
Shares Outstanding 54955300 | Shares Floating 53718811 | ||
Percent Insiders 2.7 | Percent Institutions 87.99 |
Analyst Ratings
Rating 4.33 | Target Price 20.75 | Buy - | Strong Buy 2 |
Buy - | Strong Buy 2 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Energy Recovery Inc
Company Overview
History and Background
Energy Recovery Inc. was founded in 1992. Initially focused on energy recovery in industrial processes, it shifted focus to desalination in the early 2000s. The company went public in 2008. A key milestone was its significant contract with Schlumberger in the oil & gas industry, later divested, allowing renewed focus on water and industrial markets.
Core Business Areas
- Water: Provides energy recovery devices and solutions for seawater reverse osmosis (SWRO) desalination plants. These devices recover hydraulic energy from the high-pressure brine stream and transfer it to the incoming seawater, significantly reducing energy consumption.
- Industrial: Offers specialized pumps and turbochargers for various industrial applications, including chemical processing, gas processing, and other high-pressure fluid applications. Focuses on high-efficiency solutions to lower operating costs.
Leadership and Structure
The CEO is Robert Yu Lang Mao. The organizational structure is comprised of sales, engineering, manufacturing, and finance departments, with regional sales and support teams.
Top Products and Market Share
Key Offerings
- Pressure Exchanger (PX) Devices: Energy Recovery's PX devices are used in SWRO desalination to recover and reuse hydraulic energy. Competitors include FEDCO and Danfoss. Market share is estimated at approximately 60% within energy recovery devices for SWRO. Revenue from PX devices comprises a significant portion of the company's water segment revenue.
- VorTeq: A next generation pumping solution for the Oil and Gas industry for hydraulic fracturing operations; now phased out after the Schlumberger contract ended.
- VorTeq Market Share: 0% - Product line closed
- AquaBold: High-pressure pumps used in SWRO desalination and industrial applications. Competitors include Danfoss and Grundfos. Market share varies based on pump capacity and application, estimated around 10% of high-pressure pumps for SWRO.
Market Dynamics
Industry Overview
The desalination market is growing due to increasing water scarcity, especially in arid regions. The industrial pumping market is driven by demands for energy efficiency and reliability.
Positioning
Energy Recovery Inc. is positioned as a technology leader in energy recovery for desalination, with a strong reputation for its PX technology. Its competitive advantage lies in the high efficiency and reliability of its products. For industrial markets, they position themselves as providing energy-efficient solutions for specialized applications.
Total Addressable Market (TAM)
The desalination market TAM is estimated to be billions of dollars annually. The industrial high-pressure pump market is also a multi-billion dollar market. Energy Recovery Inc. is positioned to capture a substantial portion of the energy recovery segment within desalination and targeted portions of the industrial market.
Upturn SWOT Analysis
Strengths
- Proprietary PX technology with high efficiency
- Strong market position in energy recovery for desalination
- Experienced management team
- Strong partnerships with desalination plant builders
- Global sales and service network
Weaknesses
- Concentration of revenue in the desalination market
- Dependence on large projects and contracts
- Competition from established pump manufacturers
- Exposure to fluctuations in construction cycles
Opportunities
- Expanding desalination market in arid and coastal regions
- Increasing adoption of energy-efficient technologies
- Growth in industrial applications for high-pressure pumps
- Expansion into new geographic markets
- Development of new products and applications
Threats
- Competition from lower-cost alternatives
- Technological obsolescence
- Economic downturns affecting infrastructure projects
- Changes in environmental regulations
- Disruptive technologies emerging in desalination
Competitors and Market Share
Key Competitors
- FEDCO (Private)
- Danfoss (Private)
- Grundfos (Private)
Competitive Landscape
Energy Recovery Inc. holds a strong market position due to its PX technology. Key competitive advantages are higher efficiency and reliability. Disadvantages are smaller size and concentration in the desalination market, unlike diversified pump manufacturers.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth is tied to the desalination market and success in industrial applications. Analyze revenue and earnings growth over the past 5-10 years.
Future Projections: Analyst estimates project continued growth, driven by the increasing demand for desalination and adoption of energy-efficient technologies.
Recent Initiatives: Recent strategic initiatives include the company's focus on the industrial water market.
Summary
Energy Recovery Inc. is a technology leader in energy recovery for desalination, possessing a dominant market share with its PX technology. The company is strategically positioned to benefit from the increasing demand for desalination solutions worldwide. However, dependence on large projects exposes it to potential fluctuations in performance. A key watch-out is ensuring that they effectively address the smaller competitors in the industrial and water markets.
Similar Companies
- GWI.MI
- PNR
- XYL
Sources and Disclaimers
Data Sources:
- Energy Recovery Inc. Investor Relations
- Industry Analyst Reports
- Company SEC Filings (10-K, 10-Q)
- Desalination Industry Publications
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market data and estimates are subject to change. Financial data is estimated and should be verified with official company filings.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Energy Recovery Inc
Exchange NASDAQ | Headquaters San Leandro, CA, United States | ||
IPO Launch date 2008-06-02 | President, CEO & Director Mr. David W. Moon | ||
Sector Industrials | Industry Pollution & Treatment Controls | Full time employees 254 | Website https://www.energyrecovery.com |
Full time employees 254 | Website https://www.energyrecovery.com | ||
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 PowerTrain, PX G1300, 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.
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