Energy Recovery Operating Margin vs. Net Income
| ERII Stock | USD 17.86 0.28 1.59% |
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 |
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.
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 Net Income vs. Operating Margin 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 below average in operating margin category among its peers. It is rated # 5 in net income category among its peers . 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 Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Energy Recovery |
| = | (0.07) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Energy Recovery |
| = | 21.5 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Energy Net Income Comparison
Energy Recovery is currently under evaluation in net income 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.
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells various solutions for the seawater reverse osmosis desalination and industrial wastewater treatment industries worldwide. The company was incorporated in 1992 and is headquartered in San Leandro, California. Energy Recovery operates under Pollution Treatment Controls classification in the United States and is traded on NASDAQ Exchange. It employs 222 people.
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.
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Use Investing Themes to Complement your Energy Recovery position
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Staples ETFs theme has 13 constituents at this time.
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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.