Investment Thesis
Energy Recovery (ERII) holds a strong competitive advantage in its operating markets. The company, over the long term, will benefit from the growth of SWRO as a method of water desalination. However, given the ongoing economic uncertainty and the company's reliance on few customers for large portions of revenue, the current valuation is too high. I will wait for a noticeable price drop before becoming an enthusiastic buyer.
Brief Company Description
Energy Recovery designs, engineers, manufactures, and sells energy recovery devices (ERDs) intended to "reduce waste, improve operational efficiencies, and