ERII (Energy Recovery) Momentum Rank: 2 (As of Aug. 21, 2026) — 71% Below Median

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Founder & CEO of GuruFocus
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.

ERII Energy Recovery Inc ERII
65 GF Score
Price $7.75
GF Value $12.87
Valuation Significantly Undervalued
! 6 Warning Signs
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What is Energy Recovery Momentum Rank?

Energy Recovery ERII -1.96% 65 Momentum Rank is 2 as of Aug. 21, 2026, which is 71% below its 10-year median of 7.00. GuruFocus rates ERII with a GF Score™ of 65/100 and a GF Value™ of $12.87 (Significantly Undervalued). The stock has 6 warning signs investors should review.

Energy Recovery has the Momentum Rank of 2.

Momentum Rank measures the strength and persistence of a stock's price movement over time, rated on a scale of 1 to 10.

For Momentum Rank, we considered the residual momentum concept that was widely studied by Blitz and his colleagues as well as by Nobel Prize laureates Fama and French. However, we did not find any significant differences in the performances of stocks with different ranks of residual momentum. Therefore, we use traditional momentum instead.

Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. The standardized momentum ratio is the average of the performances from 12 months ago to 1 month ago and 6 months ago to 1 month ago, divided by the beta of the stock over the past 12 months. To calculate the momentum ratio today, we would use the average of the two performance numbers.

For momentum, we found that stock price performance does not have a monotonic correlation with the momentum ratio. The stocks with the highest momentum ratios perform worse than those at about the 70th percentile. Therefore, for the momentum rank, we ranked the stocks at about the 70th percentile of the momentum ratio as the highest at 10.

A higher score reflects strong price momentum and indicates greater potential for superior performance. Conversely, a lower score indicates that momentum is either too high or too low, and stocks tend to underperform.

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

Energy Recovery Momentum Rank Related Terms

ERII vs ZONE, ARQ, FTEK: Momentum Rank Comparison

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

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

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


ERII
65GF Score
Energy Recovery Inc ERII
Momentum Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Momentum Rank →
What does a Momentum Rank of 2 mean?
Energy Recovery (ERII) has a Momentum Rank of 2 as of Aug. 21, 2026. Momentum Rank is determined using the standardized momentum ratio, measuring the speed and velocity of price changes in a stock. View historical data on Energy Recovery and its competitors. This is 71% below median its historical median of 7.00. Over the past decade, Energy Recovery's Momentum Rank has ranged from 2.00 to 10.00.
Is Energy Recovery's Momentum Rank too high?
Energy Recovery's current Momentum Rank of 2 is 71% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 10.00. Overall, Energy Recovery has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Momentum Rank compare to ZONE and ARQ?
Energy Recovery's Momentum Rank of 2 can be compared against companies in the Industrial Products industry. Historically, Energy Recovery's own Momentum Rank has ranged from 2.00 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 Momentum Rank for an Industrial Products company?
A good Momentum Rank depends on the Industrial Products industry context. However, Momentum 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 Momentum Rank mean?
A high Momentum Rank can signal that a stock is expensive relative to its fundamentals. Momentum Rank is determined using the standardized momentum ratio, measuring the speed and velocity of price changes in a stock. View historical data on Energy Recovery and its competitors. Energy Recovery's current Momentum Rank is 2, which is 71% below median its own 10-year median of 7.00. 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 $12.87, compared to a current price of $7.75 — trading 39.8% below its estimated fair value. The current Momentum Rank is 2, which is 71% below median its 10-year median of 7.00. Energy Recovery's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Momentum Rank calculated?
Momentum Rank is calculated from a company's financial statements. For Energy Recovery (ERII), the current Momentum Rank is 2 as of Aug. 21, 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 $7.75 is trading 39.8% below its estimated GF Value™ of $12.87. GuruFocus considers Energy Recovery to be Significantly Undervalued.

Key valuation signals for ERII:

  • Momentum Rank: 2 (71% below median its 10-year median of 7.00)
  • GF Value™: $12.87 vs. price of $7.75 (39.8% below fair value)
  • GF Score™: 65/100 with 6 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.
65GF Score

Get the complete analysis for ERII

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

$7.75
Price
$12.87
GF Value