Energy RecoveryERII -1.19%71 Quick Ratio is 7.50 as of Mar. 2026, which is 9% above its 10-year median of 6.86. 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 3,079 Industrial Products companies, Energy Recovery ranks better than 96.3% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Energy Recovery's quick ratio for the quarter that ended in Mar. 2026 was 7.50.
Energy Recovery has a quick ratio of 7.50. It generally indicates good short-term financial strength.
The historical rank and industry rank for Energy Recovery's Quick Ratio or its related term are showing as below:
ERII'
s Quick Ratio Range Over the Past 10 Years
Min: 3.61 Med: 6.86 Max: 11.48
Current: 7.5
During the past 13 years, Energy Recovery's highest Quick Ratio was 11.48. The lowest was 3.61. And the median was 6.86.
ERII's Quick Ratio is ranked better than 96.3% of 3079
companies
in the Industrial Products industry
Industry Median: 1.39
vs ERII: 7.50
Energy Recovery (NAS:ERII) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Energy Recovery Quick Ratio Related Terms
Energy Recovery Quick Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Quick Ratio 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 Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Energy Recovery's Quick 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 Quick Ratio of 7.50 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Energy Recovery and its competitors. This is near median its historical median of 6.86. Over the past decade, Energy Recovery's Quick Ratio has ranged from 3.61 to 11.48. According to the industry distribution chart, Energy Recovery ranks #114 out of 3079 companies in the Industrial Products industry, placing it in the top 3.7%.
Is Energy Recovery's Quick Ratio too high?
Energy Recovery's current Quick Ratio of 7.50 is near median its 10-year median of 6.86. Over the past 10 years, this metric has ranged from a low of 3.61 to a high of 11.48. The Industrial Products industry median Quick Ratio is 1.39. Energy Recovery's value of 7.50 is 439.6% above this industry median. Based on the distribution chart, Energy Recovery ranks #114 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 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Quick Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #114 out of 3079 companies for Quick Ratio. This places Energy Recovery in the top 4% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.39. Energy Recovery's value of 7.50 is 439.6% above this benchmark. Historically, Energy Recovery's own Quick Ratio has ranged from 3.61 to 11.48 over the past decade. While the company's 10-year median is 6.86 vs. the industry median of 1.39, 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 Quick Ratio for an Industrial Products company?
The median Quick Ratio among Industrial Products companies is 1.39, based on 3,079 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Quick Ratio of 7.50 is 439.6% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Quick Ratio is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Quick Ratio is 7.50, which is near median its own 10-year median of 6.86. 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 Quick Ratio is 7.50, which is near median its 10-year median of 6.86 and 439.6% above the Industrial Products industry median of 1.39. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current Quick Ratio is 7.50 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:
Quick Ratio: 7.50 (near median its 10-year median of 6.86)
GF Value™: $14.81 vs. price of $8.77 (40.8% below fair value)
Industry Position: 439.6% above the Industrial Products median (#114 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.
71GF Score
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