Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Energy Recovery's
Operating Income
for the
three
months ended in Mar. 2026 was $-11.7 Mil. Energy Recovery's Interest Expense for the
three
months ended in Mar. 2026 was $0.0 Mil.
GuruFocus does not calculate 's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Energy Recovery Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Energy Recovery's Interest Coverage or its related term are showing as below:
ERII's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.835 * Ranked among companies with meaningful Interest Coverage only.
Energy Recovery (NAS:ERII) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Energy Recovery Interest Coverage Related Terms
Energy Recovery Interest Coverage Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Interest Coverage 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: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ERII vs ARQ, FTEK, BCHT: Interest Coverage Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Energy Recovery's interest coverage with the available data.
* 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.
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:
Interest Coverage: N/A
GF Value™: $14.81 vs. price of $8.77 (40.8% 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.
71GF Score
Get the complete analysis for ERII
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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