ERII
Energy Recovery, Inc. Industrials - Pollution & Treatment Controls Investor Relations →
Energy Recovery, Inc. (ERII) closed at $9.46 as of 2026-03-20, trading 47.6% below its 200-week moving average of $18.06. This places ERII in the extreme value zone. The stock is currently moving closer to the line, down from -44.5% last week. With a 14-week RSI of 26, ERII is in oversold territory.
A big spike in selling this week — 2.2x the usual volume, and the price dropped. Sometimes this kind of heavy selling marks the end of a decline. The idea is that the last reluctant holders have finally sold, leaving fewer sellers left to push the price lower.
Over the past 876 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 $501 million, ERII is a small-cap stock. The company generates a free cash flow yield of 1.7%. Return on equity stands at 11.0%. The stock trades at 2.4x book value.
The company has been aggressively buying back shares, reducing its share count by 5.8% over the past three years.
Over the past 16.8 years, a hypothetical investment of $100 in ERII would have grown to $144, compared to $958 for the S&P 500. ERII has returned 2.2% annualized vs 14.4% for the index, underperforming the broader market over this period.
Free cash flow has been volatile over the past several years, making the quality of earnings harder to assess.
Business Health
Annual financials — how the underlying business has performed over the past several years.
Cash Flow Free cash flow & net income ($M)
Revenue Annual revenue ($M) — business growth proxy
Total Debt Balance sheet debt ($M)
ROIC Return on invested capital (%)
FCF Yield Free cash flow / market cap (%) — Yartseva signal
Gross Margin Pricing power & competitive moat (%)
Shares Outstanding Buybacks vs dilution (millions)
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% | +32.1% |
| Mar 2013 | May 2013 | 8 | 10.4% | +52.0% | +157.8% |
| Oct 2014 | Oct 2014 | 1 | 3.3% | -25.6% | +165.7% |
| Jan 2015 | Oct 2015 | 40 | 40.8% | +70.3% | +152.9% |
| Aug 2017 | Sep 2017 | 4 | 5.6% | +53.0% | +49.7% |
| Feb 2018 | Mar 2018 | 1 | 5.4% | +21.3% | +41.0% |
| Oct 2018 | Oct 2018 | 2 | 6.8% | +26.0% | +23.0% |
| Dec 2018 | Mar 2019 | 13 | 18.9% | +11.8% | +20.5% |
| Aug 2019 | Aug 2019 | 2 | 3.3% | -4.9% | +7.3% |
| Sep 2019 | Oct 2019 | 1 | 0.3% | -7.4% | +4.4% |
| Nov 2019 | Dec 2019 | 5 | 6.7% | +15.5% | +7.9% |
| Mar 2020 | Oct 2020 | 30 | 29.4% | +157.7% | +26.3% |
| Oct 2023 | Nov 2023 | 3 | 17.5% | +20.1% | -36.3% |
| Dec 2023 | Dec 2023 | 1 | 0.4% | -10.6% | -48.0% |
| Jan 2024 | Ongoing | 116+ | 47.6% | Ongoing | -47.0% |
| Average | 28 | — | +23.2% | — |
Frequently Asked Questions
Is ERII below its 200-week moving average?
Yes. As of 2026-03-20, Energy Recovery, Inc. (ERII) is trading 47.6% below its 200-week moving average of $18.06. The current price is $9.46.
What is ERII's 200-week moving average price?
Energy Recovery, Inc.'s 200-week moving average is $18.06 as of 2026-03-20. This is the average weekly closing price over roughly the last 4 years, and it acts as a long-term trend line. When a stock drops below this level, it can signal that the price has fallen far enough from the long-term trend to attract value-oriented investors.
What happens when ERII drops below its 200-week moving average?
ERII has crossed below its 200-week moving average 15 times in our data. On average, buying at that moment produced a one-year return of +23.2%. These dips have historically been decent entry points. These episodes lasted 28 weeks on average.
Is ERII a good value right now?
Here's what our data says about ERII as of 2026-03-20: The stock is below its 200-week moving average, which is the starting point for our analysis. The 14-week RSI is 26 (oversold). Free cash flow yield is 1.7%. Return on equity is 11.0%. Price-to-book is 2.4x. This is not a buy or sell recommendation — always do your own research.
How does ERII compare to the S&P 500?
Over the past 16.8 years, $100 invested in ERII would have grown to $144, compared to $958 for the S&P 500. That's 2.2% annualized vs 14.4% for the index. ERII has underperformed the broader market over this period.
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 week of 2026-03-20