ScoreWhy is Energy Recovery, Inc. ?
1
The company is Net-Debt Free
2
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 29.14 MM
- ROCE(HY) Highest at 10.77%
- INVENTORY TURNOVER RATIO(HY) Highest at 1.54 times
3
With ROE of 11.50%, it has a fair valuation with a 2.84 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -28.52%, its profits have fallen by -6% ; the PEG ratio of the company is 8.8
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.12% over the previous quarter.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.52% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Energy Recovery, Inc. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Energy Recovery, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Energy Recovery, Inc.
-28.52%
-0.63
56.70%
S&P 500
20.78%
1.56
13.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.56%
EBIT Growth (5y)
-6.61%
EBIT to Interest (avg)
20.56
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.64
Tax Ratio
9.95%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
24.10%
ROE (avg)
10.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.84
EV to EBIT
20.81
EV to EBITDA
17.18
EV to Capital Employed
3.84
EV to Sales
3.79
PEG Ratio
8.84
Dividend Yield
NA
ROCE (Latest)
18.43%
ROE (Latest)
11.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 29.14 MM
ROCE(HY)
Highest at 10.77%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.54 times
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 19.58% (YoY
CASH AND EQV(HY)
Lowest at USD 161.4 MM
EPS(Q)
Lowest at USD -0.23
Here's what is working for Energy Recovery, Inc.
Operating Cash Flow
Highest at USD 29.14 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Highest at 1.54 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Energy Recovery, Inc.
EPS
Lowest at USD -0.23
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 161.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 19.58% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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