ERIIEnergy Recovery, Inc.

$6.84-56% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 61 out of 100, Above average

Above average. Energy Recovery, Inc. scores higher than 62% of the 2,291 companies Ryufin scores.

Carried by return on capital and capital allocation, held back by return on new capital.

Industrials median 59 · all companies 54

Valuation

26% of the score, 28% here after data gaps

51median 50

Energy Recovery, Inc. is valued at 24.8x its operating profit, including debt: a rich multiple.

60x
50x
35x
25x
18x
12x
8x
24.8x
Full points at 8x or less, none from 60xfull points

Return on capital

18% of the score, 20% here after data gaps

86median 23

Over 7 years the business earned 18% a year after tax on the capital it uses.

2%
8%
15%
25%
18%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 14%

Return on new capital

16% of the score, 17% here after data gaps

23median 33

Over 6 years yearly profit fell by 1 cents for every dollar earned. New capital earned -1.7%, and 64% of profit went back into the business.

-5%
12%
-1.1%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score, 15% here after data gaps

79median 63

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countDown 0.9% a year over 5 years: buybacks
74
5%
-3%
-0.9%
0 pointsfull points
Assets against salesAssets grew 2.5% a year, sales 2.6%
86
12%
-2%
-0%
0 pointsfull points

Cycle position

12% of the score, 13% here after data gaps

82median 63

Today's operating margin of 12% is 0.85x its normal 14%: below its usual level, with room to recover. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
0.9x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 12%

Balance sheet

Taken out: its 8% is shared by the others

n/ano data

No debt or interest figures on file.

Earnings quality

6% of the score, 7% here after data gaps

50median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 0.97x profit over 3 years
54
0.7x
1x
1.3x
1x
0 pointsfull points
AccrualsProfit ran ahead of cash by 1.8% of assets
47
8%
0%
-8%
1.8%
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. For ERII, balance sheet could not be measured from the filings, so it is taken out and the remaining weights scale up.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2026-06-30, latest annual report FY2025.