Energy RecoveryERII -1.19%71 Net Margin % is -126.22% as of Mar. 2026. 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 3,039 Industrial Products companies, Energy Recovery ranks better than 89.14% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Energy Recovery's Net Income for the
three
months ended in Mar. 2026 was $-12.3 Mil. Energy Recovery's Revenue for the
three
months ended in Mar. 2026 was $9.7 Mil. Therefore, Energy Recovery's net margin for the quarter that ended in Mar. 2026 was -126.22%.
The historical rank and industry rank for Energy Recovery's Net Margin % or its related term are showing as below:
ERII'
s Net Margin % Range Over the Past 10 Years
Min: 7.48 Med: 16.88 Max: 36.2
Current: 15.07
ERII's Net Margin % is ranked better than 89.14% of 3039
companies
in the Industrial Products industry
Industry Median: 4.53
vs ERII: 15.07
Energy Recovery (NAS:ERII) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Energy Recovery Net Margin % Related Terms
Energy Recovery Net Margin % Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Net Margin % distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Net Margin % 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 Net Margin % of -126.22% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Energy Recovery and its competitors. Over the past decade, Energy Recovery's Net Margin % has ranged from 7.48 to 36.20. According to the industry distribution chart, Energy Recovery ranks #330 out of 3039 companies in the Industrial Products industry, placing it in the top 10.9%.
Is Energy Recovery's Net Margin % too high?
Energy Recovery's current Net Margin % is -126.22%. Over the past 10 years, this metric has ranged from a low of 7.48 to a high of 36.20. Based on the distribution chart, Energy Recovery ranks #330 out of 3039 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 Net Margin % compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #330 out of 3039 companies for Net Margin %. This places Energy Recovery in the top 11% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.53. Historically, Energy Recovery's own Net Margin % has ranged from 7.48 to 36.20 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 Net Margin % for an Industrial Products company?
The median Net Margin % among Industrial Products companies is 4.53, based on 3,039 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Net Margin % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Net Margin % is -126.22%. 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 Net Margin % is -126.22%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Energy Recovery (ERII), the current Net Margin % is -126.22% 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:
Net Margin %: -126.22%
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
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