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Energy RecoveryERII -3.10%66 Equity-to-Asset is 0.88 as of Mar. 2026, which is 4% above its 10-year median of 0.85. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.21 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 3,079 Industrial Products companies, Energy Recovery ranks better than 94.64% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Energy Recovery's Total Stockholders Equity for the quarter that ended in Mar. 2026 was $184.3 Mil. Energy Recovery's Total Assets for the quarter that ended in Mar. 2026 was $209.0 Mil.
Therefore, Energy Recovery's Equity to Asset Ratio for the quarter that ended in Mar. 2026 was 0.88.
The historical rank and industry rank for Energy Recovery's Equity-to-Asset or its related term are showing as below:
ERII'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.41 Med: 0.85 Max: 0.89
Current: 0.88
During the past 13 years, the highest Equity to Asset Ratio of Energy Recovery was 0.89. The lowest was 0.41. And the median was 0.85.
ERII's Equity-to-Asset is ranked better than 94.64% of 3079
companies
in the Industrial Products industry
Industry Median: 0.57
vs ERII: 0.88
Energy Recovery (NAS:ERII) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Energy Recovery Equity-to-Asset Related Terms
Energy Recovery Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Equity-to-Asset 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 ZONE, ARQ, FTEK: Equity-to-Asset Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Energy Recovery's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Equity-to-Asset of 0.88 as of Mar. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Energy Recovery and its competitors. This is near median its historical median of 0.85. Over the past decade, Energy Recovery's Equity-to-Asset has ranged from 0.41 to 0.89. According to the industry distribution chart, Energy Recovery ranks #165 out of 3079 companies in the Industrial Products industry, placing it in the top 5.4%.
Is Energy Recovery's Equity-to-Asset too high?
Energy Recovery's current Equity-to-Asset of 0.88 is near median its 10-year median of 0.85. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 0.89. The Industrial Products industry median Equity-to-Asset is 0.57. Energy Recovery's value of 0.88 is 54.4% above this industry median. Based on the distribution chart, Energy Recovery ranks #165 out of 3079 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 Equity-to-Asset compare to ZONE and ARQ?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #165 out of 3079 companies for Equity-to-Asset. This places Energy Recovery in the top 5% of its industry — outperforming the majority of peers. The industry median Equity-to-Asset is 0.57. Energy Recovery's value of 0.88 is 54.4% above this benchmark. Historically, Energy Recovery's own Equity-to-Asset has ranged from 0.41 to 0.89 over the past decade. While the company's 10-year median is 0.85 vs. the industry median of 0.57, 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 Equity-to-Asset for an Industrial Products company?
The median Equity-to-Asset among Industrial Products companies is 0.57, based on 3,079 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Equity-to-Asset of 0.88 is 54.4% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Equity-to-Asset is 0.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Equity-to-Asset is 0.88, which is near median its own 10-year median of 0.85. 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 $14.21, compared to a current price of $8.14 — trading 42.7% below its estimated fair value. The current Equity-to-Asset is 0.88, which is near median its 10-year median of 0.85 and 54.4% above the Industrial Products industry median of 0.57. 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 Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Energy Recovery (ERII), the current Equity-to-Asset is 0.88 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 $8.14 is trading 42.7% below its estimated GF Value™ of $14.21.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Equity-to-Asset: 0.88 (near median its 10-year median of 0.85)
GF Value™: $14.21 vs. price of $8.14 (42.7% below fair value)
Industry Position: 54.4% above the Industrial Products median (#165 of 3079)
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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