Is Consolidated Water Co. Ltd. (CWCO) Halal?

NASDAQ Utilities Cayman Islands $512M
✓ HALAL
Confidence: 95/100
Consolidated Water Co. Ltd. (CWCO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.6% against the AAOIFI threshold of 30%, Consolidated Water Co. Ltd. comfortably passes the key financial ratio tests. The company operates in the Utilities sector (Utilities - Regulated Water), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.6%
/ 30%
17.7%
/ 30%
7.8%
/ 30%
1.56%
/ 5%
✓ HALAL
DJIM 0.6%
/ 33%
17.7%
/ 33%
7.8%
/ 33%
1.56%
/ 5%
✓ HALAL
MSCI 1.4%
/ 33%
40.8%
/ 33%
18.1%
/ 33%
1.56%
/ 5%
✗ NOT HALAL
S&P 0.6%
/ 33%
17.7%
/ 33%
7.8%
/ 33%
1.56%
/ 5%
✓ HALAL
FTSE 1.4%
/ 33%
40.8%
/ 33%
18.1%
/ 50%
1.56%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
27.7
Forward: 20.8
EPS
$1.16
Dividend Yield
174.0%
Payout: 45.7%
P/B Ratio
2.3
EV/EBITDA
15.8
EV: $397M
Revenue
$132M
Growth: 4.4%
Beta
0.5
Low volatility
Current Ratio
6.1

Profitability

Gross Margin 36.6%
Operating Margin 9.1%
Net Margin 13.9%
Return on Equity (ROE) 8.7%
Return on Assets (ROA) 4.6%

Cash Flow & Balance Sheet

Operating Cash Flow$42M
Free Cash Flow$33M
Total Debt$3M
Debt-to-Equity1.3
Current Ratio6.1
Total Assets$258M

Price & Trading

Last Close$32.31
50-Day MA$35.99
200-Day MA$33.86
Avg Volume112K
Beta0.5
52-Week Range
$22.69
$39.12

About Consolidated Water Co. Ltd. (CWCO)

CEO
Mr. Frederick W. McTaggart
Employees
293
Sector
Utilities
Industry
Utilities - Regulated Water
Country
Cayman Islands
Exchange
NASDAQ
Market Cap
$512M
Currency
USD

Consolidated Water Co. Ltd., together with its subsidiaries, supplies potable water, treats wastewater and water for reuse, and provides water-related products and services in the Cayman Islands, the Bahamas, the United States, and the British Virgin Islands. It operates through Retail, Bulk, Services, and Manufacturing segments. The company produces potable water from seawater utilizing reverse osmosis technology and supplies water to end-users, including residential, commercial, and government customers, as well as government-owned utilities. It is also involved in design, construction, and sale of water production and treatment plants, as well as management and operation of water production plants, and treatment and reuse infrastructure for third parties; provision of water related consulting services; and production and supply of bulk water. In addition, the company manufactures and services a range of specialized and custom water-related products and systems applicable to commercial, municipal, and industrial water production, supply, and treatment; reverse osmosis desalination, membrane separation, and filtration equipment; and piping systems, vessels, and custom-fabricated components. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.

Purification Calculator

As a halal stock with 1.56% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Consolidated Water Co. Ltd. (CWCO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Consolidated Water Co. Ltd. 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 Consolidated Water Co. Ltd.'s debt ratio?

Consolidated Water Co. Ltd.'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 1.4%.

Does Consolidated Water Co. Ltd. require dividend purification?

Yes, Consolidated Water Co. Ltd. has an impermissible income ratio of 1.56%, which means 1.56% 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 Consolidated Water Co. Ltd.'s key financial metrics?

Consolidated Water Co. Ltd. has a market capitalization of $512M, trailing P/E ratio of 27.7, and revenue of $132M. The company maintains a gross margin of 36.6% 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.