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ERII vs KE

ERII
Energy Recovery, Inc.
NEUTRAL
Price
$10.72
Market Cap
$567.9M
Sector
Industrials
AI Confidence
90%
KE
Kimball Electronics, Inc.
NEUTRAL
Price
$25.94
Market Cap
$631.3M
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ERII
24.36
KE
26.74
Forward P/E
ERII
11.57
KE
17.53
P/B Ratio
ERII
2.75
KE
1.08
P/S Ratio
ERII
4.21
KE
0.43
EV/EBITDA
ERII
17.68
KE
7.3

Profitability

Gross Margin
ERII
65.14%
KE
7.8%
Operating Margin
ERII
46.49%
KE
3.83%
Profit Margin
ERII
17.01%
KE
1.65%
ROE
ERII
11.03%
KE
4.32%
ROA
ERII
6.47%
KE
3.63%

Growth

Revenue Growth
ERII
-0.3%
KE
-4.5%
Earnings Growth
ERII
20.1%
KE
7.1%

Financial Health

Debt/Equity
ERII
0.05
KE
0.3
Current Ratio
ERII
10.44
KE
2.21
Quick Ratio
ERII
8.75
KE
1.19

Dividends

Dividend Yield
ERII
--
KE
--
Payout Ratio
ERII
0.0%
KE
0.0%

AI Verdict

ERII NEUTRAL

ERII shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Mixed signals with both opportunities and risks present.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Low debt with D/E ratio of 0.05
Risks
Premium vs Graham Number ($6.22)
Declining revenue (-0.3%)
KE NEUTRAL

Kimball Electronics (KE) presents a mixed profile with a stable Piotroski F-Score of 4/9 and a clean balance sheet, but it currently trades at a premium to its Graham Number ($22.85) and Intrinsic Value ($17.12). While the company has seen a massive 92.6% price increase over the last year, this is not supported by organic growth, as revenue growth is negative (-4.50%). The company's primary strength lies in its low debt-to-equity ratio (0.30) and strong liquidity, but extremely thin profit margins (1.65%) leave little room for operational error.

Strengths
Strong liquidity with a Current Ratio of 2.21
Conservative leverage with Debt/Equity at 0.30
Positive earnings growth (7.10% YoY) despite revenue declines
Risks
Extremely thin profit margins (1.65%) and gross margins (7.80%)
Negative YoY and Q/Q revenue growth (-4.50%)
Current price ($25.94) exceeds both Graham and Intrinsic value estimates

Compare Another Pair

ERII vs KE: Head-to-Head Comparison

This page compares Energy Recovery, Inc. (ERII) and Kimball Electronics, Inc. (KE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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