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Energy RecoveryERII -0.39%65 Cash-to-Debt is 11.30 as of Jun. 2026, which is 61% above its 10-year median of 7.04. GuruFocus rates ERII with a GF Score™ of 65/100 and a GF Value™ of $12.53 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 3,054 Industrial Products companies, Energy Recovery ranks better than 78.75% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Energy Recovery's cash to debt ratio for the quarter that ended in Jun. 2026 was 11.30.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, Energy Recoverycould pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Energy Recovery's Cash-to-Debt or its related term are showing as below:
ERII'
s Cash-to-Debt Range Over the Past 10 Years
Min: 3.94 Med: 7.04 Max: 3049.53
Current: 11.3
During the past 13 years, Energy Recovery's highest Cash to Debt Ratio was 3049.53. The lowest was 3.94. And the median was 7.04.
ERII's Cash-to-Debt is ranked better than 78.75% of 3054
companies
in the Industrial Products industry
Industry Median: 1.14
vs ERII: 11.30
Energy Recovery (NAS:ERII) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Energy Recovery Cash-to-Debt Related Terms
Energy Recovery Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Pollution & Treatment Controls subindustry, Energy Recovery's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Cash-to-Debt 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-to-Debt of 11.30 as of Jun. 2026. This is 61% above median its historical median of 7.04. Over the past decade, Energy Recovery's Cash-to-Debt has ranged from 3.94 to 3,049.53. According to the industry distribution chart, Energy Recovery ranks #649 out of 3054 companies in the Industrial Products industry, placing it in the top 21.3%.
Is Energy Recovery's Cash-to-Debt too high?
Energy Recovery's current Cash-to-Debt of 11.30 is 61% above median its 10-year median of 7.04. Over the past 10 years, this metric has ranged from a low of 3.94 to a high of 3,049.53. The Industrial Products industry median Cash-to-Debt is 1.14. Energy Recovery's value of 11.30 is 891.2% above this industry median. Based on the distribution chart, Energy Recovery ranks #649 out of 3054 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 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Cash-to-Debt compare to ARQ and SCWO?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #649 out of 3054 companies for Cash-to-Debt. This places Energy Recovery in the top 21% of its industry — outperforming the majority of peers. The industry median Cash-to-Debt is 1.14. Energy Recovery's value of 11.30 is 891.2% above this benchmark. Historically, Energy Recovery's own Cash-to-Debt has ranged from 3.94 to 3,049.53 over the past decade. While the company's 10-year median is 7.04 vs. the industry median of 1.14, 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-to-Debt for an Industrial Products company?
The median Cash-to-Debt among Industrial Products companies is 1.14, based on 3,054 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Cash-to-Debt of 11.30 is 891.2% 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median Cash-to-Debt is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Cash-to-Debt is 11.30, which is 61% above median its own 10-year median of 7.04. 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 $12.53, compared to a current price of $7.63 — trading 39.1% below its estimated fair value. The current Cash-to-Debt is 11.30, which is 61% above median its 10-year median of 7.04 and 891.2% above the Industrial Products industry median of 1.14. Energy Recovery's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Energy Recovery (ERII), the current Cash-to-Debt is 11.30 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 39.1% below its estimated GF Value™ of $12.53.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Cash-to-Debt: 11.30 (61% above median its 10-year median of 7.04)
GF Value™: $12.53 vs. price of $7.63 (39.1% below fair value)
Industry Position: 891.2% above the Industrial Products median (#649 of 3054)
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.
65GF Score
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