Energy Recovery, Inc. (ERII) intrinsic value & 10-year financials
Energy Recovery, Inc. (ERII) has a Graham intrinsic value of $13.95 per share. At $6.65 on Oct 17, 2026, the stock trades 52% below that value. Over the last 10 fiscal years revenue grew 9.9% a year to $135.0M, with an average return on invested capital of 12.8%.
- Graham intrinsic value
- $13.95
- Share price (Oct 17, 2026)
- $6.65
- Price vs Graham value
- 52% below
- Market cap
- $360.2M
- Revenue (FY2025)
- $135.0M
- Revenue growth (10-yr CAGR)
- 9.9%
- ROIC (10-yr avg)
- 12.8%
- Free cash flow (FY2025)
- $17.4M
ERII 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $135.0M | $23.0M | $0.42 | $17.4M | 17.7% | 11.2% |
| FY2024 | $144.9M | $23.1M | $0.40 | $19.2M | 13.6% | 10.0% |
| FY2023 | $128.3M | $21.5M | $0.37 | $23.5M | 14.8% | 11.8% |
| FY2022 | $125.6M | $24.0M | $0.42 | $8.4M | 19.8% | 17.5% |
| FY2021 | $103.9M | $14.3M | $0.24 | $6.8M | 13.3% | 13.0% |
| FY2020 | $119.0M | $26.4M | $0.47 | $10.1M | 26.3% | 23.9% |
| FY2019 | $86.9M | $10.9M | $0.19 | -$2.1M | 11.9% | 8.2% |
| FY2018 | $74.5M | $22.1M | $0.40 | $2.3M | 13.4% | 12.4% |
| FY2017 | $69.1M | $12.3M | $0.22 | -$4.5M | 4.7% | 10.9% |
| FY2016 | $57.8M | $1.0M | $0.02 | $3.9M | 0.6% | 9.4% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Energy Recovery, Inc. is a consistent compounder, expanding top-line revenue at 9.9% annually over the past decade.
Energy Recovery, Inc. returns on capital have been average, hovering around 12.8% ROIC over the decade.
Energy Recovery, Inc. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Energy Recovery, Inc. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $13.95 per share.