Energy RecoveryERII -1.19%71 FCF Yield % is 6.02 as of Jun. 24, 2026, which is 785% above its 10-year median of 0.68. 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 3,068 Industrial Products companies, Energy Recovery ranks better than 80.8% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Energy Recovery FCF Yield % Related Terms
Energy Recovery FCF Yield % Historical Data
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The historical data trend for Energy Recovery's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Energy Recovery's FCF Yield % 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 FCF Yield % of 6.02 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Energy Recovery and its competitors. This is 785% above median its historical median of 0.68. According to the industry distribution chart, Energy Recovery ranks #589 out of 3068 companies in the Industrial Products industry, placing it in the top 19.2%.
Is Energy Recovery's FCF Yield % too high?
Energy Recovery's current FCF Yield % of 6.02 is 785% above median its 10-year median of 0.68. The Industrial Products industry median FCF Yield % is 0.54. Energy Recovery's value of 6.02 is 1014.8% above this industry median. Based on the distribution chart, Energy Recovery ranks #589 out of 3068 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 FCF Yield % compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #589 out of 3068 companies for FCF Yield %. This places Energy Recovery in the top 19% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.54. Energy Recovery's value of 6.02 is 1014.8% above this benchmark. While the company's 10-year median is 0.68 vs. the industry median of 0.54, 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 FCF Yield % for an Industrial Products company?
The median FCF Yield % among Industrial Products companies is 0.54, based on 3,068 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current FCF Yield % of 6.02 is 1014.8% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median FCF Yield % is 0.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current FCF Yield % is 6.02, which is 785% above median its own 10-year median of 0.68. 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 FCF Yield % is 6.02, which is 785% above median its 10-year median of 0.68 and 1014.8% above the Industrial Products industry median of 0.54. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Energy Recovery (ERII), the current FCF Yield % is 6.02 as of Jun. 24, 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:
FCF Yield %: 6.02 (785% above median its 10-year median of 0.68)
GF Value™: $14.81 vs. price of $8.77 (40.8% below fair value)
Industry Position: 1014.8% above the Industrial Products median (#589 of 3068)
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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