Energy Recovery, Inc. cash flow to debt ratio of 199.07% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Energy Recovery, Inc.'s free cash flow has decreased 9.28% from $19.22M last year to $17.44M, signaling decreasing performance

Energy Recovery, Inc.'s debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability.

Energy Recovery, Inc.'s debt has decreased relative to shareholder equity from 0.05 last year to 0.05 today, signaling strengthened financials

Energy Recovery, Inc. has a net cash position, so leverage is healthy.

Energy Recovery, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Energy Recovery, Inc.'s profit margin has decreased (19.81%) in the last year from 15.90% to 12.75%, signaling decreasing performance

Energy Recovery, Inc.'s short-term assets of $181.21M exceed its short-term liabilities of $17.35M

Energy Recovery, Inc.'s return on assets of 7.76% is higher than the 5.00% threshold, indicating efficient asset utilization

Energy Recovery, Inc.'s return on equity of 8.25%, is lower than 15.00%, indicating bad performance

Energy Recovery, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Energy Recovery, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Energy Recovery, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Energy Recovery, Inc. has a free cash flow yield of 4.23%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Energy Recovery, Inc.'s yearly earnings has decreased 0.38% since last year from $23.05M to $22.96M, signaling decreasing performance

Energy Recovery, Inc.'s yearly revenue has decreased 7.07% since last year from $144.95M to $134.70M, signaling decreasing performance

ROIC 9.47% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Energy Recovery, Inc.'s 3-year revenue CAGR of 2.36% is positive, indicating growing revenue over the past 3 years

Energy Recovery, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Energy Recovery, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Energy Recovery, Inc. is overvalued relative to its fair value price of 6.58 based on Discounted Cash Flow model

Energy Recovery, Inc. has an earnings yield of 3.73%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Energy Recovery, Inc. is overvalued relative to its fair value price of 4.88 based on EBITDA multiple model

Energy Recovery, Inc. has an EV/EBITDA ratio of 11.04x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Energy Recovery, Inc. is undervalued relative to its fair value price of 8.24 based on Earnings Fair Value model

Energy Recovery, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Energy Recovery, Inc. has a price-to-book ratio of 2.38x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Energy Recovery, Inc. has a price-to-sales ratio of 3.42x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue