Energy Recovery, Inc. (ERII) on Decifer

Decifer ranks ERII number 254 of 270 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 9% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 44% a year, profits grew 7% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Expected 44% revenue growth is rendered uninvestible by momentum of 0 out of 35 and no stated reason to grow.

The current read

The evidence on ERII lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Water Infrastructure & Resource Resilience: Municipal water systems in developed markets are past their design life at the same time as data centres, chip fabs and hotter summers raise industrial draw, so replacement spending is being forced by regulation rather than chosen.

Read the full ERII research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.