Bedrijfsoverzicht
Energy Recovery, Inc. is a specialized manufacturer dedicated to the design, production, and distribution of energy efficiency technology solutions across diverse global markets including the United States, various regions in the Americas, the Middle East, Northern Africa, Asia, and Europe. The company operates within the Industrials sector, specifically focusing on the Pollution & Treatment Controls industry, which implies its core business revolves around environmental protection and resource management technologies. As of the latest available data, the entity commands a market capitalization of $588.52M and generates annual revenue reaching $134.99M, supported by a workforce of 230 employees. These valuation and revenue figures position the company as a mid-cap player in the environmental technology space, indicating a significant operational footprint and established market presence without reaching the scale of large-cap industrial conglomerates.
Financiële gezondheid
The financial performance of the company demonstrates a robust earnings structure, with reported revenue of $134.99M, net income of $22.96M, and EBITDA of $28.32M. The substantial gap between the $134.99M in revenue and the $22.96M in net income highlights a cost structure where operating expenses and taxes consume approximately 83% of total sales, yet the remaining profit margin remains healthy. The company generated free cash flow of $8.59M, which indicates a positive cash generation capability that supports operational continuity and provides financial flexibility for potential capital expenditures or debt servicing. Profitability is further evidenced by three distinct margin metrics: a gross margin of 65.1% reflecting high production efficiency, an operating margin of 46.5% indicating strong cost control relative to operating expenses, and a profit margin of 17.0% showing the final earnings available to shareholders. The balance sheet exhibits a conservative stance with total cash holdings of $75.25M significantly exceeding total debt of $9.43M, while the debt-to-equity ratio stands at 4.57, suggesting a capital structure where equity exceeds debt obligations despite the specific ratio calculation presented. Liquidity is exceptionally high given a current ratio of 10.44, which implies the company holds more than ten times the current assets necessary to cover its short-term liabilities. Management effectiveness is quantified by a return on equity of 11.0% and a return on assets of 6.5%, revealing that the company generates solid returns on shareholder capital and utilizes its asset base efficiently to produce earnings.
Waarderingsbeoordeling
Valuation metrics for Energy Recovery, Inc. present a mix of trailing and forward perspectives, with a trailing twelve-month P/E ratio of 26.45 compared to a forward P/E of 11.99. This significant disparity between the trailing and forward P/E ratios implies that the market expects a substantial increase in future earnings that will bring the valuation multiple down from current levels. The price-to-book ratio is recorded at 2.85, indicating that the market values the company at nearly three times its net book value, suggesting a premium assigned to its intangible assets or growth prospects relative to its tangible asset base. Alternative valuation measures include a price-to-sales ratio of 4.36 and an EV/EBITDA of 18.40, which suggest the company is valued moderately high relative to its sales but offers a more compressed multiple when looking at earnings before interest, taxes, depreciation, and amortization. Regarding trading range, the stock has a 52-week high of $18.32 and a 52-week low of $9.35, and without the current specific share price provided in the source text, the exact percentage distance from these bounds cannot be mathematically calculated from the available facts alone, though the range defines the recent volatility envelope. The beta value is 1.08, which indicates that the stock's price volatility is slightly higher than the broader market benchmark, meaning it is expected to move approximately 8% more than the market index during periods of fluctuation.
Growth & Income
Growth dynamics are characterized by a revenue growth rate of -0.3% year-over-year, contrasting sharply with an earnings growth rate of 20.1% year-over-year. This divergence implies that the company is managing its cost structure effectively enough to boost profitability significantly even while top-line revenue remains flat, suggesting a potential shift in product mix or pricing power. As the company does not distribute a dividend, with a dividend yield of N/A and a payout ratio of 0.0%, it operates on a model of retaining all earnings to reinvest into its technology solutions and operational expansion rather than providing income to shareholders. Consequently, the overall growth and income profile reflects a pure growth-oriented strategy where shareholder returns are derived entirely from capital appreciation rather than dividend income, relying on the company's ability to sustain or accelerate future revenue growth to justify the current valuation multiples.