Is AeroVironment Inc (AVAV) Halal?

NASDAQ Industrials United States $9.3B
✓ HALAL
Confidence: 95/100
AeroVironment Inc (AVAV) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.6% against the AAOIFI threshold of 30%, AeroVironment Inc comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from April 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.6%
/ 30%
0.4%
/ 30%
3.4%
/ 30%
2.11%
/ 5%
✓ HALAL
DJIM 0.6%
/ 33%
0.4%
/ 33%
3.4%
/ 33%
2.11%
/ 5%
✓ HALAL
MSCI 5.7%
/ 33%
3.6%
/ 33%
35.0%
/ 33%
2.11%
/ 5%
✗ NOT HALAL
S&P 0.6%
/ 33%
0.4%
/ 33%
3.4%
/ 33%
2.11%
/ 5%
✓ HALAL
FTSE 5.7%
/ 33%
3.6%
/ 33%
35.0%
/ 50%
2.11%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-4.35
P/B Ratio
2.1
EV/EBITDA
62.2
EV: $9.4B
Revenue
$821M
Growth: 143.4%
Beta
1.3
High volatility
Current Ratio
5.5

Profitability

Gross Margin 25.0%
Operating Margin -5.1%
Net Margin -13.9%
Return on Equity (ROE) -8.7%
Return on Assets (ROA) -1.3%

Cash Flow & Balance Sheet

Operating Cash Flow-$1M
Free Cash Flow-$24M
Total Debt$64M
Debt-to-Equity19.3
Current Ratio5.5
Total Assets$1.1B

Price & Trading

Last Close$195.91
50-Day MA$253.90
200-Day MA$275.86
Avg Volume1.9M
Beta1.3
52-Week Range
$102.25
$417.86

About AeroVironment Inc (AVAV)

CEO
Mr. Wahid Nawabi
Employees
1,456
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NASDAQ
Market Cap
$9.3B
Currency
USD

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates in two segments, Autonomous Systems; and Space, Cyber and Directed Energy. The company provides uncrewed aircraft systems (UAS), which include small and medium UAS, and kinesis command and control software; and counter-UAS and precision strike, a loitering munitions solution that deliver actionable intelligence and precision firepower modern warfighters, including precision strike, radio frequency and kinetic C-UAS, and electronic warfare systems. It also offers autonomy, AI, and platform technologies; unmanned maritime; uncrewed ground systems; and high-altitude pseudo-satellites. The company provides digital beamforming technology, a multi-band/beam software defined antenna tile that allows simultaneous communication with multiple satellites; laser communications, a data transmission systems for space operations; space-qualified hardware for line of sight stabilization and control electronics in low, medium, and geostationary earth orbit, as well as cislunar orbits; phased array antenna technology to supports hypersonic telemetry and tracking, and other missile testing; and directed energy solution. It also offers cyber solution for national security and defense operations; and HaloCortex OSINT, an AI-powered OSINT analysis platform to provide insights and solve department of defense and commercial challenges. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

Purification Calculator

As a halal stock with 2.11% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Industrials

Frequently Asked Questions

Is AeroVironment Inc (AVAV) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), AeroVironment Inc is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is AeroVironment Inc's debt ratio?

AeroVironment Inc's debt ratio is 0.6% 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 5.7%.

Does AeroVironment Inc require dividend purification?

Yes, AeroVironment Inc has an impermissible income ratio of 2.11%, which means 2.11% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are AeroVironment Inc's key financial metrics?

AeroVironment Inc has a market capitalization of $9.3B, and revenue of $821M. The company maintains a gross margin of 25.0% and a net margin of -13.9%. Return on equity stands at -8.7%.

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.