ERII
Energy Recovery, Inc. Industrials - Pollution & Treatment Controls Investor Relations →
Energy Recovery, Inc. (ERII) closed at $15.47 as of 2026-02-02, trading 15.3% below its 200-week moving average of $18.26. This places ERII in the extreme value zone. The stock moved further from the line this week, up from -20.2% last week. The 14-week RSI sits at 40, indicating neutral momentum.
Over the past 870 weeks of data, ERII has crossed below its 200-week moving average 15 times. On average, these episodes lasted 28 weeks. Historically, investors who bought ERII at the start of these episodes saw an average one-year return of +23.2%.
With a market cap of $823 million, ERII is a small-cap stock. The company generates a free cash flow yield of 1.7%. Return on equity stands at 9.4%. The stock trades at 4.5x book value.
Over the past 16.8 years, a hypothetical investment of $100 in ERII would have grown to $235, compared to $1017 for the S&P 500. ERII has returned 5.2% annualized vs 14.9% for the index, underperforming the broader market over this period.
Free cash flow has been growing at a 41.1% compound annual rate, with 4 consecutive years of positive cash generation. A business generating more cash every year while trading below its 200-week moving average is exactly the kind of disconnect value investors look for.
Growth of $100: ERII vs S&P 500
Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.
What Happens After ERII Crosses Below the Line?
Across 15 historical episodes, buying ERII when it crossed below its 200-week moving average produced an average return of +27.5% after 12 months (median +21.0%), compared to +20.7% for the S&P 500 over the same periods. 67% of those episodes were profitable after one year. After 24 months, the average return was +66.7% vs +42.3% for the index.
Each line shows $100 invested at the moment ERII crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.
Historical Touches
ERII has crossed below its 200-week MA 15 times with an average 1-year return of +23.2% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| Jun 2009 | Feb 2013 | 192 | 61.1% | -54.6% | +116.1% |
| Mar 2013 | May 2013 | 8 | 10.4% | +52.0% | +321.5% |
| Oct 2014 | Oct 2014 | 1 | 3.3% | -25.6% | +334.6% |
| Jan 2015 | Oct 2015 | 40 | 40.8% | +70.3% | +313.6% |
| Aug 2017 | Sep 2017 | 4 | 5.6% | +53.0% | +144.8% |
| Feb 2018 | Mar 2018 | 1 | 5.4% | +21.3% | +130.6% |
| Oct 2018 | Oct 2018 | 2 | 6.8% | +26.0% | +101.2% |
| Dec 2018 | Mar 2019 | 13 | 18.9% | +11.8% | +97.1% |
| Aug 2019 | Aug 2019 | 2 | 3.3% | -4.9% | +75.4% |
| Sep 2019 | Oct 2019 | 1 | 0.3% | -7.4% | +70.8% |
| Nov 2019 | Dec 2019 | 5 | 6.7% | +15.5% | +76.4% |
| Mar 2020 | Oct 2020 | 30 | 29.4% | +157.7% | +106.5% |
| Oct 2023 | Nov 2023 | 3 | 17.5% | +20.1% | +4.2% |
| Dec 2023 | Dec 2023 | 1 | 0.4% | -10.6% | -14.9% |
| Jan 2024 | Ongoing | 110+ | 41.5% | Ongoing | -13.3% |
| Average | 28 | — | +23.2% | — |
Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.
Data as of Friday close, 2026-02-02