Latest news with #EnergyRecovery
Yahoo
2 days ago
- Business
- Yahoo
What Is Energy Recovery, Inc.'s (NASDAQ:ERII) Share Price Doing?
While Energy Recovery, Inc. (NASDAQ:ERII) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today we will analyse the most recent data on Energy Recovery's outlook and valuation to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Energy Recovery appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 32.25x is currently well-above the industry average of 23.27x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Energy Recovery's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for Energy Recovery Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 35% over the next year, the near-term future seems bright for Energy Recovery. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has well and truly priced in ERII's positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe ERII should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on ERII for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for ERII, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. Diving deeper into the forecasts for Energy Recovery mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Energy Recovery, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
26-05-2025
- Business
- Yahoo
There's Been No Shortage Of Growth Recently For Energy Recovery's (NASDAQ:ERII) Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at Energy Recovery (NASDAQ:ERII) so let's look a bit deeper. Our free stock report includes 1 warning sign investors should be aware of before investing in Energy Recovery. Read for free now. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Energy Recovery, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = US$21m ÷ (US$225m - US$18m) (Based on the trailing twelve months to March 2025). Thus, Energy Recovery has an ROCE of 10%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Machinery industry average of 11%. See our latest analysis for Energy Recovery Above you can see how the current ROCE for Energy Recovery compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Energy Recovery . We like the trends that we're seeing from Energy Recovery. The data shows that returns on capital have increased substantially over the last five years to 10%. The amount of capital employed has increased too, by 26%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. To sum it up, Energy Recovery has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with a respectable 63% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. In light of that, we think it's worth looking further into this stock because if Energy Recovery can keep these trends up, it could have a bright future ahead. On a final note, we've found 1 warning sign for Energy Recovery that we think you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Spotting Winners: Xylem (NYSE:XYL) And Water Infrastructure Stocks In Q1
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how water infrastructure stocks fared in Q1, starting with Xylem (NYSE:XYL). Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 5 water infrastructure stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 11.8%. In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results. Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector. Xylem reported revenues of $2.07 billion, up 1.8% year on year. This print exceeded analysts' expectations by 1.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts' EBITDA estimates. "The team's first-quarter results exceeded expectations, continuing our momentum and delivering a strong start to 2025,' said Matthew Pine, Xylem's president and CEO. The stock is up 10% since reporting and currently trades at $127.30. Is now the time to buy Xylem? Access our full analysis of the earnings results here, it's free. Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally. Watts Water Technologies reported revenues of $558 million, down 2.3% year on year, outperforming analysts' expectations by 1.9%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 16.2% since reporting. It currently trades at $245.88. Is now the time to buy Watts Water Technologies? Access our full analysis of the earnings results here, it's free. Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors. Energy Recovery reported revenues of $8.07 million, down 33.3% year on year, falling short of analysts' expectations by 63.3%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Energy Recovery delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 18.6% since the results and currently trades at $12.24. Read our full analysis of Energy Recovery's results here. As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors. Mueller Water Products reported revenues of $364.3 million, up 3.1% year on year. This result surpassed analysts' expectations by 2.9%. It was a very strong quarter as it also logged an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' EBITDA estimates. Mueller Water Products achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 6.1% since reporting and currently trades at $25.40. Read our full, actionable report on Mueller Water Products here, it's free. As the world's largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors. Tennant reported revenues of $290 million, down 6.8% year on year. This number lagged analysts' expectations by 2.2%. It was a softer quarter as it also produced a significant miss of analysts' EBITDA and EPS estimates. Tennant had the weakest full-year guidance update among its peers. The stock is up 5.6% since reporting and currently trades at $76.12. Read our full, actionable report on Tennant here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. 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Yahoo
08-05-2025
- Business
- Yahoo
Energy Recovery, Inc. (NASDAQ:ERII) is largely controlled by institutional shareholders who own 85% of the company
Given the large stake in the stock by institutions, Energy Recovery's stock price might be vulnerable to their trading decisions The top 12 shareholders own 51% of the company Insiders have been selling lately We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To get a sense of who is truly in control of Energy Recovery, Inc. (NASDAQ:ERII), it is important to understand the ownership structure of the business. With 85% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's delve deeper into each type of owner of Energy Recovery, beginning with the chart below. View our latest analysis for Energy Recovery Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Energy Recovery does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Energy Recovery, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Energy Recovery is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 11% of shares outstanding. For context, the second largest shareholder holds about 9.0% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. We can report that insiders do own shares in Energy Recovery, Inc.. As individuals, the insiders collectively own US$16m worth of the US$815m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Energy Recovery that you should be aware of before investing here. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
08-05-2025
- Business
- Yahoo
Energy Recovery (NASDAQ:ERII) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops 18.2%
Energy recovery device manufacturer Energy Recovery (NASDAQ:ERII) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 33.3% year on year to $8.07 million. Its non-GAAP loss of $0.13 per share was significantly below analysts' consensus estimates. Is now the time to buy Energy Recovery? Find out in our full research report. Energy Recovery (ERII) Q1 CY2025 Highlights: Revenue: $8.07 million vs analyst estimates of $21.97 million (33.3% year-on-year decline, 63.3% miss) Adjusted EPS: -$0.13 vs analyst estimates of $0 (significant miss) Operating Margin: -156%, down from -90.4% in the same quarter last year Free Cash Flow Margin: 130%, up from 46.9% in the same quarter last year Market Capitalization: $814.8 million Company Overview Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors. Sales Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Energy Recovery grew its sales at a solid 9.7% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis. Energy Recovery Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Energy Recovery's annualized revenue growth of 15.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Energy Recovery Year-On-Year Revenue Growth This quarter, Energy Recovery missed Wall Street's estimates and reported a rather uninspiring 33.3% year-on-year revenue decline, generating $8.07 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 17.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will spur better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
