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/ERII
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Energy Recovery Inc

Energy Recovery Inc

ERII
$7.55USD↑+3.85%+0.28 today

MARKET CAP

385.4M

P/E (TTM)

14.3x

FWD P/E

46.5x

DAY RANGE

$7 – $8

52W RANGE

$7
$18

AI Summary

Stalk
StalkMedium

ERII’s recent momentum breakout above its consolidation range signals medium-term bullish participation under mean-reversion rules, but price is currently extended above short-term EMAs with overbought RSI and extreme Options Score. Entry is deferred for a pullback into the 9/21 EMA confluence and prior breakout zone. Long-term downtrend and overhead 50/200 DMAs remain key caps and argue for caution until structural repair holds.

  • ↑Core desalination sector backed by long-term water scarcity and gov’t initiatives.
  • ↑PXQ650 rollout drove early orders and rebounding wastewater sales.
  • ↓Q2 revenue plunged to $12 M from $27.8 M a year ago, hitting sustainability.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Energy Recovery, Inc. (NASDAQ: ERII) is a specialized company operating within the water and wastewater treatment sectors, focusing on advanced energy recovery technologies. The company has positioned itself strategically in the market to address the growing global challenges of water scarcity and energy efficiency, especially through its pressure exchanger technology which is crucial for desalination processes. ERII targets growth in areas heavily influenced by increased demand arising from these challenges, particularly in the Middle East and emerging markets like China and South America.

Bull says

  • ↑Core desalination sector backed by long-term water scarcity and gov’t initiatives.
  • ↑PXQ650 rollout drove early orders and rebounding wastewater sales.
  • ↑$27 M backlog underpins growth with recovery projected by 2027.
  • ↑Gross margin rose to 74.7% alongside tighter OpEx guidance.
  • ↑Expansion in China and South America diversifies revenue streams.
  • ↑Healthy liquidity and reasonable book-to-price support valuation.

Bear says

  • ↓Q2 revenue plunged to $12 M from $27.8 M a year ago, hitting sustainability.
  • ↓FY26 revenue estimates cut 21%, share price dropped 12% on analyst downgrades.
  • ↓High share volatility deters risk-averse investors amid uncertain outlook.
  • ↓Negative earnings yield signals potential overvaluation risk.
  • ↓Elevated short interest highlights pervasive bearish market sentiment.
  • ↓Weak analyst revisions and low profitability factors weigh on recovery.

Investment themes with ERII

Buybacks↓ -0.29%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-08-2026bullish

Transcript signals

Bull points

  • we're feeling confident about 26. and we'll be able to give you some guidance around 2026 as we get into the third quarter earnings call.
  • I think it's more indicative of the increasing pace of desalination, that the water scarcity trends are driving action, and that is really good for our long-term growth.
  • we are reiterating our 2025 guidance on all metrics and reinstating our wastewater guidance.

Bear points

  • I'd say the early read on data centers is that CO2 is still a very nascent, sort of very small part of that market. So unless If that is going to grow at some sort of increased pace, then it's looking like data centers is not going to be an opportunity for us.
Read full transcript analysis ›