Energy RecoveryERII -2.18%66 Debt-to-EBITDA is -0.21 as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.50 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,333 Industrial Products companies, Energy Recovery ranks better than 81.61% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Energy Recovery's Debt-to-EBITDA or its related term are showing as below:
ERII'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.01 Med: 0.47 Max: 0.88
Current: 0.31
During the past 13 years, the highest Debt-to-EBITDA Ratio of Energy Recovery was 0.88. The lowest was 0.01. And the median was 0.47.
ERII's Debt-to-EBITDA is ranked better than 81.61% of 2333
companies
in the Industrial Products industry
Industry Median: 1.7
vs ERII: 0.31
Energy Recovery (NAS:ERII) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Energy Recovery Debt-to-EBITDA Related Terms
Energy Recovery Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Debt-to-EBITDA 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.
ERII vs ARQ, FTEK, BCHT: Debt-to-EBITDA Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Energy Recovery (ERII) has a Debt-to-EBITDA of -0.21 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Energy Recovery. Over the past decade, Energy Recovery's Debt-to-EBITDA has ranged from 0.01 to 0.88. According to the industry distribution chart, Energy Recovery ranks #429 out of 2333 companies in the Industrial Products industry, placing it in the top 18.4%.
Is Energy Recovery's Debt-to-EBITDA too high?
Energy Recovery's current Debt-to-EBITDA is -0.21. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.88. Based on the distribution chart, Energy Recovery ranks #429 out of 2333 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 Debt-to-EBITDA compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #429 out of 2333 companies for Debt-to-EBITDA. This places Energy Recovery in the top 18% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.70. Historically, Energy Recovery's own Debt-to-EBITDA has ranged from 0.01 to 0.88 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,333 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Energy Recovery. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Debt-to-EBITDA is -0.21. 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 $14.50, compared to a current price of $8.73 — trading 39.8% below its estimated fair value. The current Debt-to-EBITDA is -0.21. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Energy Recovery (ERII), the current Debt-to-EBITDA is -0.21 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 $8.73 is trading 39.8% below its estimated GF Value™ of $14.50.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Debt-to-EBITDA: -0.21
GF Value™: $14.50 vs. price of $8.73 (39.8% below fair value)
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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