Energy RecoveryERII -1.19%71 Current Ratio is 9.28 as of Mar. 2026, which is 14% above its 10-year median of 8.15. GuruFocus rates ERII with a GF Score™ of 71/100 and a GF Value™ of $14.81 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 3,081 Industrial Products companies, Energy Recovery ranks better than 96.4% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Energy Recovery's current ratio for the quarter that ended in Mar. 2026 was 9.28.
Energy Recovery has a current ratio of 9.28. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Energy Recovery's Current Ratio or its related term are showing as below:
ERII'
s Current Ratio Range Over the Past 10 Years
Min: 4.03 Med: 8.15 Max: 12.45
Current: 9.28
During the past 13 years, Energy Recovery's highest Current Ratio was 12.45. The lowest was 4.03. And the median was 8.15.
ERII's Current Ratio is ranked better than 96.4% of 3081
companies
in the Industrial Products industry
Industry Median: 1.96
vs ERII: 9.28
Energy Recovery (NAS:ERII) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Energy Recovery Current Ratio Related Terms
Energy Recovery Current Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Current 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 Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Current Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Current 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 Current Ratio of 9.28 as of Mar. 2026. This is 14% above median its historical median of 8.15. Over the past decade, Energy Recovery's Current Ratio has ranged from 4.03 to 12.45. According to the industry distribution chart, Energy Recovery ranks #111 out of 3081 companies in the Industrial Products industry, placing it in the top 3.6%.
Is Energy Recovery's Current Ratio too high?
Energy Recovery's current Current Ratio of 9.28 is 14% above median its 10-year median of 8.15. Over the past 10 years, this metric has ranged from a low of 4.03 to a high of 12.45. The Industrial Products industry median Current Ratio is 1.96. Energy Recovery's value of 9.28 is 373.5% above this industry median. Based on the distribution chart, Energy Recovery ranks #111 out of 3081 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 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Current Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #111 out of 3081 companies for Current Ratio. This places Energy Recovery in the top 4% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Energy Recovery's value of 9.28 is 373.5% above this benchmark. Historically, Energy Recovery's own Current Ratio has ranged from 4.03 to 12.45 over the past decade. While the company's 10-year median is 8.15 vs. the industry median of 1.96, 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 Current Ratio for an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,081 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Current Ratio of 9.28 is 373.5% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Current Ratio is 9.28, which is 14% above median its own 10-year median of 8.15. 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 $14.81, compared to a current price of $8.77 — trading 40.8% below its estimated fair value. The current Current Ratio is 9.28, which is 14% above median its 10-year median of 8.15 and 373.5% above the Industrial Products industry median of 1.96. Energy Recovery's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current Current Ratio is 9.28 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 $8.77 is trading 40.8% below its estimated GF Value™ of $14.81.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Current Ratio: 9.28 (14% above median its 10-year median of 8.15)
GF Value™: $14.81 vs. price of $8.77 (40.8% below fair value)
Industry Position: 373.5% above the Industrial Products median (#111 of 3081)
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.
71GF Score
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