Energy RecoveryERII +2.38%66 3-Year RORE % is 3.67 as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.78 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,900 Industrial Products companies, Energy Recovery ranks worse than 51.93% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Energy Recovery's 3-Year RORE % for the quarter that ended in Mar. 2026 was 3.67%.
The industry rank for Energy Recovery's 3-Year RORE % or its related term are showing as below:
ERII's 3-Year RORE % is ranked worse than 51.93% of 2900
companies
in the Industrial Products industry
Industry Median: 5.34
vs ERII: 3.67
Energy Recovery (NAS:ERII) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Energy Recovery 3-Year RORE % Related Terms
Energy Recovery 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Energy Recovery's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Energy Recovery's 3-Year RORE % 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 the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Energy Recovery (ERII) has a 3-Year RORE % of 3.67 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Energy Recovery and its competitors. According to the industry distribution chart, Energy Recovery ranks #1506 out of 2900 companies in the Industrial Products industry, placing it in the top 51.9%.
Is Energy Recovery's 3-Year RORE % too high?
Energy Recovery's current 3-Year RORE % is 3.67. The Industrial Products industry median 3-Year RORE % is 5.34. Energy Recovery's value of 3.67 is 31.3% below this industry median. Based on the distribution chart, Energy Recovery ranks #1506 out of 2900 companies in the Industrial Products industry, which is below 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 3-Year RORE % compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1506 out of 2900 companies for 3-Year RORE %. This places Energy Recovery in the lower half of its industry. The industry median 3-Year RORE % is 5.34. Energy Recovery's value of 3.67 is 31.3% 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 3-Year RORE % for an Industrial Products company?
The median 3-Year RORE % among Industrial Products companies is 5.34, based on 2,900 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current 3-Year RORE % of 3.67 is 31.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median 3-Year RORE % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current 3-Year RORE % is 3.67. 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 $14.78, compared to a current price of $9.02 — trading 39% below its estimated fair value. The current 3-Year RORE % is 3.67 and 31.3% below the Industrial Products industry median of 5.34. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Energy Recovery (ERII), the current 3-Year RORE % is 3.67 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 $9.02 is trading 39% below its estimated GF Value™ of $14.78.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
3-Year RORE %: 3.67
GF Value™: $14.78 vs. price of $9.02 (39% below fair value)
Industry Position: 31.3% below the Industrial Products median (#1506 of 2900)
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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