CFA Institute Research Challenge
hosted by
Southwest U.S. Research Challenge
The Graduate Team
The CFA Institute Research Challenge is a global competition that tests the equity research and valuation,
investment report writing, and presentation skills of university students. The following report was prepared
in compliance with the Official Rules of the CFA Institute Research Challenge, is submitted by a team of
university students as part of this annual educational initiative and should not be considered a professional
report.
Disclosures:
Ownership and material conflicts of interest
The author(s), or a member of their household, of this report does not hold a financial interest in the securities of this company.
The author(s), or a member of their household, of this report does not know of the existence of any conflicts of interest that might
bias the content or publication of this report.
Receipt of compensation
Compensation of the author(s) of this report is not based on investment banking revenue.
Position as an officer or a director
The author(s), or a member of their household, does not serve as an officer, director, or advisory board member of the subject
company.
Market making
The author(s) does not act as a market maker in the subject company’s securities.
Disclaimer
The information set forth herein has been obtained or derived from sources generally available to the public and believed by the
author(s) to be reliable, but the author(s) does not make any representation or warranty, express or implied, as to its accuracy or
completeness. The information is not intended to be used as the basis of any investment decisions by any person or entity. This
information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. This report
should not be considered to be a recommendation by any individual affiliated with CFA Societies Texas, CFA Society Louisiana,
CFA Institute, or the CFA Institute Research Challenge with regard to this company’s stock.
Energy Recovery, Inc.
Dec. 31, 2022
ERII
NASDAQ
Industrials
Industrial Manufacturing
$20.49
$2.94
85.65%
Source: Team Estimates, FactSet
Source: FactSet
Source: Factset
Source: Global Water Intelligence
Source: ERI Product Brochure
Source: Factset
Source: Damodaran Online
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: FactSet Source: FactSet
Source: FactSet
Source: Statista
Source: Garden City Group, LLC
Source: Company Website
Source: FactSet
Source: FactSet
Source: FAIRR
Source: FactSet
Source: FactSet Source: Company Website
Source: Damodaran Online
Source: FactSet
Source: FactSet
Source: Research Gate
Source: National Geographic
Source: Peter H. Gleick
Source: USGS
Source: FactSet
Source: Company Website
CHAIRMAN OF THE BOARD OF DIRECTORS, PRESIDENT AND CHIEF EXECUTIVE OFFICER
LEAD INDEPENDENT DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
Source: ERII 2021 Annual Report
Source: ERII 2022 Product Brochure
Source: ruhrpumpen.com
Source: FactSet
engages in the manufacture and provision of aftermarket service for comprehensive
flow control systems. It operates through the following segments: Flowserve Pumps Division and
Flow Control Division. The Flowserve Pumps Division segment provides pumps, pre-configured
industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and
related services. The Flow Control Division segment involves engineered and industrial valves,
control valves, actuators and controls and related services. The company was founded in 1790 and is
headquartered in Irving, TX.
, Ltd. engages in the manufacturing and sale of pumps and seals. It
operates through the following business divisions: Pump, Environment, and New Energy. The Pump
division manufactures and sells pumps, mechanical seals, and other pump related equipment. The
Environment division plans, produces, and markets environmental equipment and reusable waste
items. The New Energy division manufactures and sells wind power, small hydro power, and biomass
power generation equipment. It also oers installation works and supplies electricity. The company
was founded on August 1, 1919 and is headquartered in Osaka, Japan.
engages in the manufacture of industrial and building pumps, valves, and related
systems. It operates through the following segments: Pumps, Valves, and Service. The Pumps segment
covers single and multistage pumps, submersible pumps, and associated control and drive systems.
The Valves segment includes butterfly, globe, gate, control, diaphragm and ball valves, and associate
actuators and control systems. The Service segment is composed of installation, commissioning, start-
up, inspection, servicing, maintenance and repair of pumps, related systems and valves, modular
service concepts, and system analyses.
engages in the manufacture and sale of industrial machinery and equipment. It operates
through the following segments: Flow Equipment, Services, Chemtech, and Others. The Flow
Equipment segment provides pumps, agitators, compressors, grinders, screens and filters. The
Services segment oers parts as well as maintenance and repair solutions for pumps, turbines,
compressors, motors and generators. The Chemtech segment covers mass transfer, static mixing, and
polymer solutions for petrochemicals, refining, LNG, biopolymers, and biofuels.
Source: FactSet
Source: FactSet
Net income $18,354 $22,093 $10,913 $26,387 $14,269
Fiscal year end date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26
Fiscal year end date 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26
Enterprise Value Sensitivity Analysis
