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Energy RecoveryERII +0.06%66 Cash Ratio is 4.97 as of Mar. 2026, which is 3% below its 10-year median of 5.11. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.47 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 3,033 Industrial Products companies, Energy Recovery ranks better than 95.55% on this metric.
Energy Recovery has a Cash Ratio of 4.97. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Energy Recovery's Cash Ratio or its related term are showing as below:
ERII'
s Cash Ratio Range Over the Past 10 Years
Min: 2.87 Med: 5.11 Max: 9.78
Current: 4.97
During the past 13 years, Energy Recovery's highest Cash Ratio was 9.78. The lowest was 2.87. And the median was 5.11.
ERII's Cash Ratio is ranked better than 95.55% of 3033
companies
in the Industrial Products industry
Industry Median: 0.52
vs ERII: 4.97
Energy Recovery (NAS:ERII) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Energy Recovery Cash Ratio Related Terms
Energy Recovery Cash Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Pollution & Treatment Controls subindustry, Energy Recovery's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Energy Recovery (ERII) has a Cash Ratio of 4.97 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Energy Recovery and its competitors. This is near median its historical median of 5.11. Over the past decade, Energy Recovery's Cash Ratio has ranged from 2.87 to 9.78. According to the industry distribution chart, Energy Recovery ranks #135 out of 3033 companies in the Industrial Products industry, placing it in the top 4.5%.
Is Energy Recovery's Cash Ratio too high?
Energy Recovery's current Cash Ratio of 4.97 is near median its 10-year median of 5.11. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 9.78. The Industrial Products industry median Cash Ratio is 0.52. Energy Recovery's value of 4.97 is 855.8% above this industry median. Based on the distribution chart, Energy Recovery ranks #135 out of 3033 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Energy Recovery has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Cash Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #135 out of 3033 companies for Cash Ratio. This places Energy Recovery in the top 5% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.52. Energy Recovery's value of 4.97 is 855.8% above this benchmark. Historically, Energy Recovery's own Cash Ratio has ranged from 2.87 to 9.78 over the past decade. While the company's 10-year median is 5.11 vs. the industry median of 0.52, Energy Recovery has consistently been above 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 Cash Ratio for an Industrial Products company?
The median Cash Ratio among Industrial Products companies is 0.52, based on 3,033 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Cash Ratio of 4.97 is 855.8% above 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 Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Cash Ratio is 0.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Cash Ratio is 4.97, which is near median its own 10-year median of 5.11. 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 $14.47, compared to a current price of $8.66 — trading 40.2% below its estimated fair value. The current Cash Ratio is 4.97, which is near median its 10-year median of 5.11 and 855.8% above the Industrial Products industry median of 0.52. Energy Recovery's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current Cash Ratio is 4.97 as of Mar. 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 $8.66 is trading 40.2% below its estimated GF Value™ of $14.47.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Cash Ratio: 4.97 (near median its 10-year median of 5.11)
GF Value™: $14.47 vs. price of $8.66 (40.2% below fair value)
Industry Position: 855.8% above the Industrial Products median (#135 of 3033)
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.
66GF Score
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