ERII (Energy Recovery) 1-Year Sharpe Ratio: -0.52 (As of Jul. 16, 2026)

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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
66 GF Score
Price $8.72
GF Value $14.43
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Energy Recovery 1-Year Sharpe Ratio?

Energy Recovery ERII +1.16% 66 1-Year Sharpe Ratio is -0.52 as of Jul. 16, 2026. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.43 (Significantly Undervalued). The stock has 5 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-16), Energy Recovery's 1-Year Sharpe Ratio is -0.52.

Energy Recovery  (NAS:ERII) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Energy Recovery 1-Year Sharpe Ratio Related Terms

ERII vs ARQ, FTEK, BCHT: 1-Year Sharpe Ratio Comparison

For the Pollution & Treatment Controls subindustry, Energy Recovery's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Energy Recovery's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Energy Recovery's 1-Year Sharpe Ratio falls into.


ERII
66GF Score
Energy Recovery Inc ERII
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Energy Recovery 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of -0.52 mean?
Energy Recovery (ERII) has a 1-Year Sharpe Ratio of -0.52 as of Jul. 16, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Energy Recovery and its competitors.
Is Energy Recovery's 1-Year Sharpe Ratio too high?
Energy Recovery's current 1-Year Sharpe Ratio is -0.52. 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 1-Year Sharpe Ratio compare to ARQ and FTEK?
Energy Recovery's 1-Year Sharpe Ratio of -0.52 can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Industrial Products company?
A good 1-Year Sharpe Ratio depends on the Industrial Products industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Energy Recovery and its competitors. Energy Recovery's current 1-Year Sharpe Ratio is -0.52. 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 $14.43, compared to a current price of $8.72 — trading 39.6% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.52. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current 1-Year Sharpe Ratio is -0.52 as of Jul. 16, 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 $8.72 is trading 39.6% below its estimated GF Value™ of $14.43. GuruFocus considers Energy Recovery to be Significantly Undervalued.

Key valuation signals for ERII:

  • 1-Year Sharpe Ratio: -0.52
  • GF Value™: $14.43 vs. price of $8.72 (39.6% 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

Get the complete analysis for ERII

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

$8.72
Price
$14.43
GF Value