Energy RecoveryERII +1.77%66 ROC (Joel Greenblatt) % is -48.62% as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.69 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 3,060 Industrial Products companies, Energy Recovery ranks better than 76.44% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Energy Recovery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -48.62%.
The historical rank and industry rank for Energy Recovery's ROC (Joel Greenblatt) % or its related term are showing as below:
ERII'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 22.65 Med: 30.86 Max: 84.03
Current: 28.09
During the past 13 years, Energy Recovery's highest ROC (Joel Greenblatt) % was 84.03%. The lowest was 22.65%. And the median was 30.86%.
ERII's ROC (Joel Greenblatt) % is ranked better than 76.44% of 3060
companies
in the Industrial Products industry
Industry Median: 11.7
vs ERII: 28.09
Energy Recovery's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -18.20% per year.
Energy Recovery (NAS:ERII) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Energy Recovery ROC (Joel Greenblatt) % Related Terms
Energy Recovery ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Energy Recovery's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Energy Recovery's ROC (Joel Greenblatt) % falls into.
Energy Recovery ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of -48.62% mean?
Energy Recovery (ERII) has a ROC (Joel Greenblatt) % of -48.62% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Energy Recovery and its competitors. Over the past decade, Energy Recovery's ROC (Joel Greenblatt) % has ranged from 22.65 to 84.03. According to the industry distribution chart, Energy Recovery ranks #721 out of 3060 companies in the Industrial Products industry, placing it in the top 23.6%.
Is Energy Recovery's ROC (Joel Greenblatt) % too high?
Energy Recovery's current ROC (Joel Greenblatt) % is -48.62%. Over the past 10 years, this metric has ranged from a low of 22.65 to a high of 84.03. Based on the distribution chart, Energy Recovery ranks #721 out of 3060 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 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's ROC (Joel Greenblatt) % compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #721 out of 3060 companies for ROC (Joel Greenblatt) %. This places Energy Recovery in the top 24% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.70. Historically, Energy Recovery's own ROC (Joel Greenblatt) % has ranged from 22.65 to 84.03 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.70, based on 3,060 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current ROC (Joel Greenblatt) % is -48.62%. 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 $14.69, compared to a current price of $9.18 — trading 37.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is -48.62%. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Energy Recovery (ERII), the current ROC (Joel Greenblatt) % is -48.62% 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 $9.18 is trading 37.5% below its estimated GF Value™ of $14.69.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
ROC (Joel Greenblatt) %: -48.62%
GF Value™: $14.69 vs. price of $9.18 (37.5% 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.
66GF Score
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