Energy Recovery, Inc. (ERII)
Industrials
- Fundamental
- 3
- Sentiment
- 2
- Technical
- 2
Do Nothing: qualitativeScore is 2 (below required floor of 3); strategy requires qualitativeScore ≥ 3 before any bullish entry.
Company overview
Energy Recovery, Inc. is a global technology company specializing in solutions for seawater reverse osmosis desalination and industrial wastewater treatment. The company operates through its Water and Emerging Technologies divisions, offering products such as energy recovery devices and high-pressure pumps. Additionally, it provides support services and develops energy-efficient solutions for natural gas processing and refrigeration systems.
Fundamental
fairStrong balance sheet and margins, but recent revenue drop and project volatility create uncertainty.
Energy Recovery has a net-cash balance sheet and very high margins, but its SEC-filed Q2 2026 earnings release shows a sharp revenue drop (about $12M, down 57% YoY) and a swing to net loss, increasing near-term uncertainty. Valuation is reasonable on EV/EBITDA with an attractive trailing free-cash-flow yield, but results are lumpy and sensitive to external disruption, so it fits better as a watchlist name until revenue momentum stabilizes.
Sentiment
weakRecent media coverage is negative following a significant revenue decline and geopolitical concerns.
Last ~14d media coverage is bearish after the Aug. 5 Q2 release (revenue down ~57% YoY to ~$12M and a net loss) plus an in-window price-target cut, with polarity_score ≈ -0.35 vs a -0.29 baseline (mild deterioration). Legal scan shows only a plaintiff-law-firm solicitation and no regulator-confirmed investigation.
Technical
weakThe stock remains below key moving averages, with strong bearish trend indicators.
Price is below SMA20/50/200 and EMA9/21, MACD (-0.18) is below signal (-0.09) and below zero, and ADX 44.23 confirms strong bearish trend pressure; RSI 36.63 and Williams %R -83.06 only justify a bounce watch, not a bullish swing entry.
You’re looking at 2026-08-14 — more than 2 trading days ago.
Subscribers saw this then, and see today’s score, verdict and trade plan now.
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Not financial advice. For informational and educational purposes only.