Energy Recovery Current Valuation vs. Return On Asset

ERII Stock  USD 17.86  0.28  1.59%   
Based on the key profitability measurements obtained from Energy Recovery's financial statements, Energy Recovery is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Energy Recovery's ability to earn profits and add value for shareholders. As of now, Energy Recovery's EV To Sales is decreasing as compared to previous years. The Energy Recovery's current Sales General And Administrative To Revenue is estimated to increase to 0.33, while Price To Sales Ratio is projected to decrease to 7.87. As of now, Energy Recovery's Income Tax Expense is increasing as compared to previous years. The Energy Recovery's current Net Income Applicable To Common Shares is estimated to increase to about 29 M, while Accumulated Other Comprehensive Income is projected to decrease to (46.2 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.6785
Way Down
Slightly volatile
For Energy Recovery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Energy Recovery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Energy Recovery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Energy Recovery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Energy Recovery over time as well as its relative position and ranking within its peers.
  

Energy Recovery's Revenue Breakdown by Earning Segment

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For more detail on how to invest in Energy Stock please use our How to Invest in Energy Recovery guide.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Energy Recovery. If investors know Energy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Energy Recovery listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.414
Earnings Share
0.35
Revenue Per Share
2.346
Quarterly Revenue Growth
0.313
Return On Assets
0.0458
The market value of Energy Recovery is measured differently than its book value, which is the value of Energy that is recorded on the company's balance sheet. Investors also form their own opinion of Energy Recovery's value that differs from its market value or its book value, called intrinsic value, which is Energy Recovery's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Energy Recovery's market value can be influenced by many factors that don't directly affect Energy Recovery's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Energy Recovery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Energy Recovery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Energy Recovery's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Energy Recovery Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Energy Recovery's current stock value. Our valuation model uses many indicators to compare Energy Recovery value to that of its competitors to determine the firm's financial worth.
Energy Recovery is rated as one of the top companies in current valuation category among its peers. It is rated # 2 in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Energy Recovery is about  20,548,633,821 . The Energy Recovery's current Return On Assets is estimated to increase to 0.09. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Energy Recovery's earnings, one of the primary drivers of an investment's value.

Energy Recovery's Earnings Breakdown by Geography

Energy Current Valuation vs. Competition

Energy Recovery is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 4.43 Billion. Energy Recovery totals roughly 941.13 Million in current valuation claiming about 21% of equities under Industrials industry.

Energy Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Energy Recovery

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
941.13 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Energy Recovery

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0458
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Energy Return On Asset Comparison

Energy Recovery is currently under evaluation in return on asset category among its peers.

Energy Recovery Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Energy Recovery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Energy Recovery will eventually generate negative long term returns. The profitability progress is the general direction of Energy Recovery's change in net profit over the period of time. It can combine multiple indicators of Energy Recovery, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-44 K-46.2 K
Operating Income19.1 M20 M
Income Before Tax22.7 M23.8 M
Total Other Income Expense Net-101 K-96 K
Net Income21.5 M22.6 M
Income Tax Expense1.2 M1.3 M
Net Income Applicable To Common Shares27.7 M29 M
Net Income From Continuing Ops21.5 M22.6 M
Non Operating Income Net Other1.4 M1.5 M
Interest Income3.8 M3.9 M
Net Interest Income3.8 M3.9 M
Change To Netincome8.6 MM
Net Income Per Share 0.38  0.40 
Income Quality 1.21  1.27 
Net Income Per E B T 0.95  0.87 

Energy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Energy Recovery. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Energy Recovery position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Energy Recovery's important profitability drivers and their relationship over time.

Use Energy Recovery in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Energy Recovery position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Energy Recovery will appreciate offsetting losses from the drop in the long position's value.

Energy Recovery Pair Trading

Energy Recovery Pair Trading Analysis

The ability to find closely correlated positions to Energy Recovery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Energy Recovery when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Energy Recovery - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Energy Recovery to buy it.
The correlation of Energy Recovery is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Energy Recovery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Energy Recovery moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Energy Recovery can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Energy Recovery position

In addition to having Energy Recovery in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Power Assets Thematic Idea Now

Power Assets
Power Assets Theme
Large capitalization equities showing high long-term performance indicators and above average return expectations based on Macroaxis rating system. The Power Assets theme has 49 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Power Assets Theme or any other thematic opportunities.
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When determining whether Energy Recovery offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Energy Recovery's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Energy Recovery Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Energy Recovery Stock:
Check out Investing Opportunities.
For more detail on how to invest in Energy Stock please use our How to Invest in Energy Recovery guide.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project Energy Recovery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Energy Recovery at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Energy Recovery's income statement, its balance sheet, and the statement of cash flows.
Potential Energy Recovery investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Energy Recovery investors may work on each financial statement separately, they are all related. The changes in Energy Recovery's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Energy Recovery's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.