Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and …
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Competitive advantage assessment
Key strengths
Margins Consistently Above PeersGross margin at 65.1% (top 0%) and operating margin at 17.7% (top 6%) indicate strong pricing power.
Strong Interest Coverage & Conservative LeverageDebt serviceability is strong (score 0.90), with robust interest coverage.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Where ERII ranks in Pollution & Treatment Controls
Energy Recovery, Inc. ranks #2 of 20
scored companies in Pollution & Treatment Controls by moat score — the top 10%.
The widest moat in the group is Veralto Corp (VLTO)
at 82/100.
Moat scores for companies ranked near ERII in Pollution & Treatment Controls
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 79
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 84
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 78
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 91
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 70
· 15% of the moat score
Scale matters only when it converts into economics.
Energy Recovery, Inc. (ERII) scores 81 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 20 scored companies in Pollution & Treatment Controls, the top 10%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 19 companies in Pollution & Treatment Controls. Its strongest defense is Resilience (91/100) and its weakest is Scale & Market Position (70/100).
How does Energy Recovery, Inc. compare with other Pollution & Treatment Controls companies?
Energy Recovery, Inc. ranks #2 of 20 scored companies in Pollution & Treatment Controls by moat score. The widest moat in Pollution & Treatment Controls is Veralto Corp (VLTO) at 82/100. The companies ranked closest are Veralto Corp (VLTO) at 82 just above it and Federal Signal Corporation (FSS) at 77 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 19 companies in Pollution & Treatment Controls. The defenses are then weighted to produce the overall score out of 100.
Why is Energy Recovery, Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Energy Recovery, Inc.?
The Corporate Default template measures 6 defenses, and ERII scores: Pricing Power (82), Cost Advantage (79), Customer Stickiness (84), Capital Efficiency (78), Resilience (91), Scale & Market Position (70). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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