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Energy RecoveryERII -0.39%70 3-Year Book Growth Rate is 5.70% as of Jun. 2026, which is 31% below its 10-year median of 8.30. GuruFocus rates ERII with a GF Score™ of 70/100 and a GF Value™ of $12.57 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,955 Industrial Products companies, Energy Recovery ranks worse than 51.03% on this metric.
During the past 12 months, Energy Recovery's average Book Value per Share Growth Rate was -2.30% per year.
During the past 3 years, the average Book Value per Share Growth Rate was 5.70% per year.
During the past 5 years, the average Book Value per Share Growth Rate was 5.90% per year.
During the past 10 years, the average Book Value per Share Growth Rate was 13.60% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
During the past 13 years, the highest 3-Year average Book Value per Share Growth Rate of Energy Recovery was 171.70% per year. The lowest was -10.90% per year. And the median was 8.30% per year.
Energy Recovery (NAS:ERII) 3-Year Book Growth Rate Explanation
Book Value per Share is the ratio of equity available to common shareholders divided by the shares outstanding. Book value per share effectively indicates a firm's net asset value on a per-share basis. It can be used by investors to gauge whether a stock price is undervalued by comparing it to the firm's market value per share. Theoretically, it is what the shareholders will receive if the company is liquidated.
Energy Recovery 3-Year Book Growth Rate Related Terms
ERII vs ARQ, SCWO, FTEK: 3-Year Book Growth Rate Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's 3-Year Book Growth Rate, along with its competitors' market caps and 3-Year Book Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Energy Recovery 3-Year Book Growth Rate vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's 3-Year Book Growth Rate distribution charts can be found below:
* The bar in red indicates where Energy Recovery's 3-Year Book Growth Rate falls into.
Energy Recovery 3-Year Book Growth Rate Calculation
This is the 3-year average growth rate of Book Value per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
What does a 3-Year Book Growth Rate of 5.70% mean?
Energy Recovery (ERII) has a 3-Year Book Growth Rate of 5.70% as of Jun. 2026. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for Energy Recovery and its competitors. This is 31% below median its historical median of 8.30. According to the industry distribution chart, Energy Recovery ranks #1508 out of 2955 companies in the Industrial Products industry, placing it in the top 51%.
Is Energy Recovery's 3-Year Book Growth Rate too high?
Energy Recovery's current 3-Year Book Growth Rate of 5.70% is 31% below median its 10-year median of 8.30. The Industrial Products industry median 3-Year Book Growth Rate is 5.90. Energy Recovery's value of 5.70% is 3.4% below this industry median. Based on the distribution chart, Energy Recovery ranks #1508 out of 2955 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Energy Recovery has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's 3-Year Book Growth Rate compare to ARQ and SCWO?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1508 out of 2955 companies for 3-Year Book Growth Rate. This places Energy Recovery in the lower half of its industry. The industry median 3-Year Book Growth Rate is 5.90. Energy Recovery's value of 5.70% is 3.4% below this benchmark. While the company's 10-year median is 8.30 vs. the industry median of 5.90, Energy Recovery has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Book Growth Rate for an Industrial Products company?
The median 3-Year Book Growth Rate among Industrial Products companies is 5.90, based on 2,955 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year Book Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year Book Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current 3-Year Book Growth Rate of 5.70% is 3.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Book Growth Rate mean?
A high 3-Year Book Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for Energy Recovery and its competitors. For the Industrial Products industry, the median 3-Year Book Growth Rate is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current 3-Year Book Growth Rate is 5.70%, which is 31% below median its own 10-year median of 8.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Recovery stock overvalued right now?
Based on GuruFocus' analysis, Energy Recovery (ERII) is currently considered Significantly Undervalued. The stock's GF Value™ is $12.57, compared to a current price of $7.63 — trading 39.3% below its estimated fair value. The current 3-Year Book Growth Rate is 5.70%, which is 31% below median its 10-year median of 8.30 and 3.4% below the Industrial Products industry median of 5.90. Energy Recovery's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Book Growth Rate calculated?
3-Year Book Growth Rate is calculated from a company's financial statements. For Energy Recovery (ERII), the current 3-Year Book Growth Rate is 5.70% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Energy Recovery (ERII) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Recovery stock appears to be undervalued.
The current stock price of $7.63 is trading 39.3% below its estimated GF Value™ of $12.57.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
3-Year Book Growth Rate: 5.70% (31% below median its 10-year median of 8.30)
GF Value™: $12.57 vs. price of $7.63 (39.3% below fair value)
Industry Position: 3.4% below the Industrial Products median (#1508 of 2955)
No single metric tells the full story. See the ERII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Recovery Inc designs and manufactures energy-saving technologies. The firm uses its proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Using its proprietary technology, it offers energy recovery devices, including pressure exchangers, pumps, and turbochargers, mainly used for seawater desalination and wastewater treatment. Additionally, the company is involved in the development of emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. The firm's reportable operating segments are: Water, which generates maximum revenue, and Emerging Technologies. Geographically, it generates maximum revenue from the Middle East, and the rest from other markets.
70GF Score
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