ERII
Energy Recovery, Inc. Industrials - Pollution & Treatment Controls Investor Relations →
Energy Recovery, Inc. (ERII) closed at $6.99 as of 2026-09-18, trading 57.4% below its 200-week moving average of $16.39. This places ERII in the extreme value zone. The stock is currently moving closer to the line, down from -54.1% last week. The 14-week RSI sits at 34, indicating neutral momentum.
Trading volume is running at 1.7x of its 14-week average, which is in the normal range. The balance between buying and selling volume (1.23 ratio) is neutral — neither side is clearly dominating.
Over the past 902 weeks of data, ERII has crossed below its 200-week moving average 15 times. On average, these episodes lasted 30 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 $357 million, ERII is a small-cap stock. The company generates a free cash flow yield of 10.2%, which is notably high. Return on equity stands at 8.6%. The stock trades at 2.1x book value.
The company has been aggressively buying back shares, reducing its share count by 5.8% over the past three years. This stock also meets the Yartseva multibagger criteria as a small-cap with strong free cash flow yield and reasonable book value.
Over the past 17.3 years, a hypothetical investment of $100 in ERII would have grown to $106, compared to $1124 for the S&P 500. ERII has returned 0.3% annualized vs 15.0% for the index, underperforming the broader market over this period.
Free cash flow has been volatile over the past several years, making the quality of earnings harder to assess.
Business Health
Annual financials — how the underlying business has performed over the past several years.
Cash Flow Free cash flow & net income ($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 +20.5% 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 +42.1% 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.
Bean Score Experimental
The Bean Score measures how far a stock's free cash flow yield has deviated from its own quarterly baseline, normalized by the stock's historical behavior. Between earnings dates, FCF is constant — so the score is purely a function of stock price. The levels below show at what prices ERII would reach each dislocation threshold.
Dislocation Price Levels
Prices where ERII's Bean Score would hit each σ threshold. Valid until next earnings report: 2026-11-04.
| Level | σ | Price | Signal |
|---|---|---|---|
| Deep Value | +2σ | $7.15 | Unusually cheap — analysis point |
| Value | +1σ | $7.64 | Cheap vs. own history |
| Fair Value | +0σ | $8.21 | Historical mean behavior |
| Expensive | -1σ | $8.86 | Expensive vs. own history |
| Deep Expensive | -2σ | $9.63 | Unusually expensive — analysis point |
Quarterly FCF & Yield Trailing twelve-month free cash flow and yield at each quarter end
Recent Earnings
| Date | EPS Est. | EPS Actual | Surprise |
|---|---|---|---|
| 2026-08-05 | $-0.04 | $-0.03 | +14.3% |
| 2026-05-06 | $-0.07 | $-0.11 | -50.0% |
| 2026-02-25 | $0.67 | $0.53 | -20.9% |
| 2025-11-05 | $0.10 | $0.12 | +24.1% |
Signal Accuracy Collecting Data
The Bean Score system is accumulating weekly data to validate signal accuracy. After 13+ weeks of history, this section will display win rates and average returns for each σ threshold crossing — answering the question: "When this score says cheap or expensive, does the price subsequently move in the expected direction?"
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Theoretical framework — not backtested or forward-tested. The Bean Score uses trailing twelve-month free cash flow yield as a dislocation identifier. It measures whether the market has pushed a stock's yield unusually far from its own baseline behavior. These levels are analysis points: prices at which the yield deviation becomes unusual enough to justify the work. FCF values update quarterly with earnings; between reports, all movement is price-driven.
Dislocation Scores Experimental
Each score measures deviation from ERII's own historical baseline — the same idea as the Bean Score, applied to different fundamentals. Positive means cheaper or more dislocated than this stock's norm. Scores marked σ are normalized by the stock's own variability; pp values are simple deltas from its recent baseline.
Theoretical framework — not backtested. These scores describe how unusual today's readings are for this specific company. Each one is an analysis point, a reason to open the filings. Annual-statement scores (buyback, accruals, FCF vs history) rest on only ~4 yearly data points and are deltas, not sigmas.
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% | -2.4% |
| Mar 2013 | May 2013 | 8 | 10.4% | +52.0% | +90.5% |
| Oct 2014 | Oct 2014 | 1 | 3.3% | -25.6% | +96.3% |
| Jan 2015 | Oct 2015 | 40 | 40.8% | +70.3% | +86.9% |
| Aug 2017 | Sep 2017 | 4 | 5.6% | +53.0% | +10.6% |
| Feb 2018 | Mar 2018 | 1 | 5.4% | +21.3% | +4.2% |
| Oct 2018 | Oct 2018 | 2 | 6.8% | +26.0% | -9.1% |
| Dec 2018 | Mar 2019 | 13 | 18.9% | +11.8% | -11.0% |
| Aug 2019 | Aug 2019 | 2 | 3.3% | -4.9% | -20.7% |
| Sep 2019 | Oct 2019 | 1 | 0.3% | -7.4% | -22.8% |
| Nov 2019 | Dec 2019 | 5 | 6.7% | +15.5% | -20.3% |
| Mar 2020 | Oct 2020 | 30 | 29.4% | +157.7% | -6.7% |
| Oct 2023 | Nov 2023 | 3 | 17.5% | +20.1% | -52.9% |
| Dec 2023 | Dec 2023 | 1 | 0.4% | -10.6% | -61.6% |
| Jan 2024 | Ongoing | 142+ | 57.4% | Ongoing | -60.8% |
| Average | 30 | — | +23.2% | — |
Frequently Asked Questions
Is ERII below its 200-week moving average?
Yes. As of 2026-09-18, Energy Recovery, Inc. (ERII) is trading 57.4% below its 200-week moving average of $16.39. The current price is $6.99.
What is ERII's 200-week moving average price?
Energy Recovery, Inc.'s 200-week moving average is $16.39 as of 2026-09-18. 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 30 weeks on average.
Is ERII a good value right now?
Here's what our data says about ERII as of 2026-09-18: The stock is below its 200-week moving average, which is the starting point for our analysis. The 14-week RSI is 34. Free cash flow yield is 10.2%. Return on equity is 8.6%. Price-to-book is 2.1x. 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 17.3 years, $100 invested in ERII would have grown to $106, compared to $1124 for the S&P 500. That's 0.3% annualized vs 15.0% 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 2026-09-18