Energy Recovery ERII
Nasdaq · Special Industry Machinery, Nec · $366M$6.71−6.42%Nov 5 close · Databento
ERII Wire Story Reactions & EOD Technical StudyDaily closes (Databento EOD) pinned with every AlgoThesis Wire story (dot colour = next trading day close) and SEC filing
Nov 5, 2026CLOSE $6.711D −6.42%3M −16.02%SMA20 $6.84SMA50 $7.03RSI(14) 42.2
6.71
RSI (14, Wilder EOD) · 70 Overbought / 30 OversoldRSI 42.2
Data provided by Databento (end of day). Next close = the first close after a story against the close before it; official daily closes only, not a call, not advice.
The numbers
fiscal 2025, as filed with the SEC · 66-metric EOD snapshot via DatabentoMarket cap$366M
EV / True FCF32.7x
Revenue$135.0M −6.9%
True FCF (ex-SBC)$9.7M −9.3%
Rule of 406.0%
ROIC12.5%
True FCF Yield2.7%
EPS, diluted$0.42 +5.0%
Modern Valuation (EOD)
Market Cap$366M
Enterprise Value$317.9M
EV / True FCF32.70
EV / FCF18.23
EV / Gross Profit3.62
EV / EBIT13.31
EV / Sales2.36
P / E (GAAP)15.94
P / FCF20.99
P / Oper. CF19.50
P / Book1.78
Owner & Cash Yields
True FCF Yield2.7%
FCF Yield4.8%
Owner Earn. Yield4.8%
Earnings Yield6.3%
Shareholder Yield+7.6%
Buyback Yield9.7%
Dividend Yield—
Dividend / sh—
Payout Ratio—
FCF / sh$0.34
EPS (diluted)$0.42
Compounder & Returns
Rule of 406.0%
ROIC12.5%
Cash ROIC (CROIC)11.0%
GP / Assets38.0%
ROE11.1%
ROA9.9%
Gross Margin65.1%
Oper. Margin17.7%
Net Margin17.0%
FCF Margin12.9%
True FCF Margin7.2%
Quality & Dilution
Cash Conversion76%
Accrual Ratio+1.8%
SBC % of FCF44.3%
SBC % of Rev5.7%
Reinvest. Rate77%
Sales Growth Y/Y−6.9%
Sales 3Y CAGR+2.4%
EPS Growth Y/Y+5.0%
FCF Growth Y/Y−9.3%
FCF 3Y CAGR+27.6%
Share Change Y/Y−6.3%
Balance Sheet & Scale
Revenue (FY)$135.0M
Gross Profit (FY)$87.9M
Oper. Income (FY)$23.9M
GAAP Net Income$23.0M
True FCF (ex-SBC)$9.7M
Cash & Equiv$48.1M
Total Debt—
Net Cash (Debt)$48.1M
Net Cash % MCap+13.1%
Debt / FCF (yrs)0.0y
Current Ratio10.4450.76M sh
Price & Technicals (EOD)
Perf Week−5.76%
Perf Month−0.30%
Perf Quarter−22.70%
Perf Half Y−28.84%
Perf YTD−35.85%
SMA 20 Dist−1.88%$6.84
SMA 50 Dist−4.58%$7.03
SMA 100 Dist−13.68%$7.77
Window High−42.20%$11.61
Window Low+1.05%$6.64
RSI (14) · Vol42.232%v
Income Distribution & Cash Flow ConversionHow every dollar of ERII revenue flows through cost of goods, operating expenses, taxes, GAAP net income, and dilution-adjusted free cash flow
Where Every $100 of Revenue Goes (FY2025)
Cost of Revenue (COGS)$47.1M ($34.9 / $100)
R&D Reinvestment$13.0M ($9.7 / $100)
Operating Expenses$51.0M ($37.8 / $100)
Tax & Non-Operating$927,000 ($0.7 / $100)
Net Profit Kept$23.0M ($17.0 / $100)
Earnings Quality: GAAP Profit → True Owner Cash (FY2025)
GAAP Net Income$23.0M (17.0% margin)
Operating Cash Flow (OCF)$18.8M(13.9% of rev)
Less: Capital Expenditures−$1.3M(1.0% of rev)
Standard Free Cash Flow (FCF)$17.4M(12.9% margin)
Less: Stock-Based Comp (SBC)−$7.7M(44.3% of FCF)
True FCF (Owner Cash ex-SBC)$9.7M(7.2% of rev)
Revenue by fiscal year
Operating leverage — margins
GrossOperatingNet
| Line Item (USD) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY Δ | 4Y CAGR | Trend |
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | $103.9M | $125.6M | $128.3M | $144.9M | $135.0M | −6.9% | +6.8% | |
| Cost of Revenue (COGS) | $32.7M | $38.2M | $41.3M | $48.0M | $47.1M | −2.0% | +9.6% | |
| Gross Profit | $71.2M | $87.4M | $87.1M | $96.9M | $87.9M | −9.3% | +5.4% | |
| Research & Development (R&D) | $20.1M | $17.9M | $17.0M | $16.2M | $13.0M | −19.7% | −10.2% | |
| Total Operating Expenses | $57.4M | $62.5M | $68.0M | $77.2M | $64.0M | −17.1% | +2.8% | |
| Operating Income (EBIT) | $13.8M | $24.8M | $19.1M | $19.7M | $23.9M | +21.1% | +14.6% | |
| Interest Expense | — | — | — | — | $0 | — | — | |
| Income Tax Expense | $-265,000 | $2.0M | $1.2M | $2.7M | $4.6M | +72.6% | — | |
| GAAP Net Income | $14.3M | $24.0M | $21.5M | $23.1M | $23.0M | −0.4% | +12.6% | |
| Diluted EPS | $0.24 | $0.42 | $0.37 | $0.40 | $0.42 | +5.0% | +15.0% | |
| Diluted Shares | 58.7M | 57.6M | 57.7M | 57.8M | 54.2M | −6.3% | −2.0% | |
| Balance Sheet | ||||||||
| Cash & Equivalents | $74.5M | $56.5M | $68.2M | $29.8M | $48.1M | +61.6% | −10.4% | |
| Inventory | $20.4M | $28.4M | $26.1M | $24.9M | $24.3M | −2.6% | +4.4% | |
| Total Current Assets | $151.8M | $157.9M | $185.5M | $173.7M | $181.2M | +4.4% | +4.5% | |
| Total Assets | $213.7M | $217.0M | $253.0M | $242.8M | $231.5M | −4.6% | +2.0% | |
| Total Current Liabilities | $19.8M | $18.3M | $21.5M | $23.4M | $17.4M | −25.9% | −3.2% | |
| Total Debt (Short + Long Term) | $0 | $0 | $0 | $0 | $0 | — | — | |
| Total Liabilities | $34.9M | $31.7M | $33.2M | $32.8M | $25.3M | −22.8% | −7.7% | |
| Stockholders' Equity | $178.8M | $185.3M | $219.8M | $210.0M | $206.2M | −1.8% | +3.6% | |
| Net Cash / (Net Debt) | $74.5M | $56.5M | $68.2M | $29.8M | $48.1M | +61.6% | −10.4% | |
| Invested Capital | $104.3M | $128.9M | $151.6M | $180.3M | $158.1M | −12.3% | +11.0% | |
| Cash Flow & Capital Allocation | ||||||||
| Operating Cash Flow (OCF) | $13.5M | $12.6M | $26.1M | $20.5M | $18.8M | −8.5% | +8.5% | |
| Depreciation & Amortization (D&A) | $4.5M | $4.8M | $4.1M | $4.0M | $3.8M | −7.1% | −4.4% | |
| Stock-Based Compensation (SBC) | $6.1M | $6.5M | $8.0M | $10.3M | $7.7M | −25.2% | +6.3% | |
| Capital Expenditures (CapEx) | $6.7M | $4.2M | $2.6M | $1.3M | $1.3M | +2.5% | −33.2% | |
| Free Cash Flow (FCF) | $6.8M | $8.4M | $23.5M | $19.2M | $17.4M | −9.3% | +26.4% | |
| True FCF (ex-SBC Owner Cash) | $789,000 | $1.9M | $15.4M | $8.9M | $9.7M | +9.2% | +87.4% | |
| Share Repurchases (Buybacks) | $23.3M | $26.7M | $0 | $50.4M | $35.6M | −29.3% | +11.1% | |
Fundamentals, income distribution and multi-year statements from SEC EDGAR filings (public domain). Valuation multiples, performance and technicals computed from Databento 1D EOD closes. For information only, not investment advice.
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