ERII (Energy Recovery) GF Value Rank: 4 (As of Jul. 06, 2026) — Near Median


ERII Energy Recovery Inc ERII
66 GF Score
Price $8.90
GF Value $14.61
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Energy Recovery GF Value Rank?

Energy Recovery ERII +0.68% 66 GF Value Rank is 4 as of Jul. 06, 2026, which is at its 10-year median of 4.00. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.61 (Significantly Undervalued). The stock has 5 warning signs investors should review.

Energy Recovery has the GF Value Rank of 4.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Energy Recovery GF Value Rank Related Terms

ERII vs ARQ, FTEK, BCHT: GF Value Rank Comparison

For the Pollution & Treatment Controls subindustry, Energy Recovery's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Energy Recovery's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Energy Recovery's GF Value Rank falls into.


ERII
66GF Score
Energy Recovery Inc ERII
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 4 mean?
Energy Recovery (ERII) has a GF Value Rank of 4 as of Jul. 06, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Energy Recovery and its competitors. This is near median its historical median of 4.00. Over the past decade, Energy Recovery's GF Value Rank has ranged from 1.00 to 10.00.
Is Energy Recovery's GF Value Rank too high?
Energy Recovery's current GF Value Rank of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. 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 GF Value Rank compare to ARQ and FTEK?
Energy Recovery's GF Value Rank of 4 can be compared against companies in the Industrial Products industry. Historically, Energy Recovery's own GF Value Rank has ranged from 1.00 to 10.00 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 GF Value Rank for an Industrial Products company?
A good GF Value Rank depends on the Industrial Products industry context. However, GF Value Rank 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 GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Energy Recovery and its competitors. Energy Recovery's current GF Value Rank is 4, which is near median its own 10-year median of 4.00. 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 $14.61, compared to a current price of $8.90 — trading 39.1% below its estimated fair value. The current GF Value Rank is 4, which is near median its 10-year median of 4.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For Energy Recovery (ERII), the current GF Value Rank is 4 as of Jul. 06, 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 $8.90 is trading 39.1% below its estimated GF Value™ of $14.61. GuruFocus considers Energy Recovery to be Significantly Undervalued.

Key valuation signals for ERII:

  • GF Value Rank: 4 (near median its 10-year median of 4.00)
  • GF Value™: $14.61 vs. price of $8.90 (39.1% below fair value)
  • GF Score™: 66/100 with 5 warning signs

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 Business Description

Other Exchanges 5E2:Germany
Address 1717 Doolittle Drive, San Leandro, CA, USA, 94577
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

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GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$8.90
Price
$14.61
GF Value