Is AMERICAN ELECTRIC POWER CO INC (AEP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 69.4% / 30% | 0.6% / 30% | 4.1% / 30% | 1.67% / 5% | ✗ NOT HALAL |
| DJIM | 69.4% / 33% | 0.6% / 33% | 4.1% / 33% | 1.67% / 5% | ✗ NOT HALAL |
| MSCI | 43.3% / 33% | 0.4% / 33% | 2.6% / 33% | 1.67% / 5% | ✗ NOT HALAL |
| S&P | 69.4% / 33% | 0.6% / 33% | 4.1% / 33% | 1.67% / 5% | ✗ NOT HALAL |
| FTSE | 43.3% / 33% | 0.4% / 33% | 2.6% / 50% | 1.67% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 47.5% | |
| Operating Margin | 22.8% | |
| Net Margin | 16.4% | |
| Return on Equity (ROE) | 12.5% | |
| Return on Assets (ROA) | 3.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $6.9B |
| Free Cash Flow | -$1.6B |
| Total Debt | $49.5B |
| Debt-to-Equity | 154.2 |
| Current Ratio | 0.5 |
| Total Assets | $114.5B |
Price & Trading
| Last Close | $128.85 |
| 50-Day MA | $126.55 |
| 200-Day MA | $116.31 |
| Avg Volume | 3.6M |
| Beta | 0.6 |
|
52-Week Range
$97.46
| |
About AMERICAN ELECTRIC POWER CO INC (AEP)
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
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Frequently Asked Questions
Is AMERICAN ELECTRIC POWER CO INC (AEP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), AMERICAN ELECTRIC POWER CO INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is AMERICAN ELECTRIC POWER CO INC's debt ratio?
AMERICAN ELECTRIC POWER CO INC's debt ratio is 69.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 43.3%.
What are AMERICAN ELECTRIC POWER CO INC's key financial metrics?
AMERICAN ELECTRIC POWER CO INC has a market capitalization of $70.7B, trailing P/E ratio of 19.5, and revenue of $21.9B. The company maintains a gross margin of 47.5% and a net margin of 16.4%. Return on equity stands at 12.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.