Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Energy RecoveryERII -1.39%66 Net-Net Working Capital is $2.04 as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.45 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,362 Industrial Products companies, Energy Recovery ranks better than 73.05% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Energy Recovery's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $2.04.
The industry rank for Energy Recovery's Net-Net Working Capital or its related term are showing as below:
ERII's Price-to-Net-Net-Working-Capital is ranked better than 73.05% of 1362
companies
in the Industrial Products industry
Industry Median: 8.12
vs ERII: 4.19
Energy Recovery (NAS:ERII) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Energy Recovery Net-Net Working Capital Related Terms
Energy Recovery Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Net-Net Working Capital 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: Net-Net Working Capital Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $2.04 mean?
Energy Recovery (ERII) has a Net-Net Working Capital of $2.04 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Energy Recovery According to the industry distribution chart, Energy Recovery ranks #367 out of 1362 companies in the Industrial Products industry, placing it in the top 26.9%.
Is Energy Recovery's Net-Net Working Capital too high?
Energy Recovery's current Net-Net Working Capital is $2.04. The Industrial Products industry median Net-Net Working Capital is 8.12. Energy Recovery's value of $2.04 is 74.9% below this industry median. Based on the distribution chart, Energy Recovery ranks #367 out of 1362 companies in the Industrial Products industry, which is above the industry midpoint. 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 Net-Net Working Capital compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #367 out of 1362 companies for Net-Net Working Capital. This puts Energy Recovery in the upper half of its industry. The industry median Net-Net Working Capital is 8.12. Energy Recovery's value of $2.04 is 74.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Industrial Products company?
The median Net-Net Working Capital among Industrial Products companies is 8.12, based on 1,362 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Net-Net Working Capital of $2.04 is 74.9% below 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Energy Recovery For the Industrial Products industry, the median Net-Net Working Capital is 8.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Net-Net Working Capital is $2.04. 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 $14.45, compared to a current price of $8.54 — trading 40.9% below its estimated fair value. The current Net-Net Working Capital is $2.04 and 74.9% below the Industrial Products industry median of 8.12. 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 Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Energy Recovery (ERII), the current Net-Net Working Capital is $2.04 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 $8.54 is trading 40.9% below its estimated GF Value™ of $14.45.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Net-Net Working Capital: $2.04
GF Value™: $14.45 vs. price of $8.54 (40.9% below fair value)
Industry Position: 74.9% below the Industrial Products median (#367 of 1362)
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
Get the complete analysis for ERII
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ERII has been successfully added to your 
