Is Enphase Energy, Inc. (ENPH) Halal?

NASDAQ Technology United States $5.0B
✓ HALAL
Confidence: 95/100
Enphase Energy, Inc. (ENPH) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 23.0% against the AAOIFI threshold of 30%, Enphase Energy, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Solar), 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 23.0%
/ 30%
28.7%
/ 30%
4.4%
/ 30%
4.26%
/ 5%
✓ HALAL
DJIM 23.0%
/ 33%
28.7%
/ 33%
4.4%
/ 33%
4.26%
/ 5%
✓ HALAL
MSCI 34.5%
/ 33%
43.1%
/ 33%
6.5%
/ 33%
4.26%
/ 5%
✗ NOT HALAL
S&P 23.0%
/ 33%
28.7%
/ 33%
4.4%
/ 33%
4.26%
/ 5%
✓ HALAL
FTSE 34.5%
/ 33%
43.1%
/ 33%
6.5%
/ 50%
4.26%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
29.3
Forward: 14.1
EPS
$1.29
P/B Ratio
4.6
EV/EBITDA
19.6
EV: $4.7B
Revenue
$1.5B
Growth: -10.3%
Beta
1.4
High volatility
Current Ratio
2.1

Profitability

Gross Margin 30.4%
Operating Margin 6.3%
Net Margin 11.7%
Return on Equity (ROE) 17.9%
Return on Assets (ROA) 3.0%

Cash Flow & Balance Sheet

Operating Cash Flow$137M
Free Cash Flow$96M
Total Debt$1.2B
Debt-to-Equity114.4
Current Ratio2.1
Total Assets$3.5B

Price & Trading

Last Close$40.18
50-Day MA$42.84
200-Day MA$37.17
Avg Volume6.7M
Beta1.4
52-Week Range
$25.78
$63.70

About Enphase Energy, Inc. (ENPH)

CEO
Mr. Badrinarayanan Kothandaraman
Employees
2,872
Sector
Technology
Industry
Solar
Country
United States
Exchange
NASDAQ
Market Cap
$5.0B
Currency
USD

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories; IQ Battery and related accessories; IQ PowerPack 1500 and related accessories; IQ Combiner, IQ Gateway, and IQ Energy Router; cloud-based monitoring service; and electric vehicle charging solutions, as well as design, proposal, permitting, installation and solar appointment generation services, and Enphase Care services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

Purification Calculator

As a halal stock with 4.26% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Enphase Energy, Inc. (ENPH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Enphase Energy, 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 Enphase Energy, Inc.'s debt ratio?

Enphase Energy, Inc.'s debt ratio is 23.0% 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 34.5%.

Does Enphase Energy, Inc. require dividend purification?

Yes, Enphase Energy, Inc. has an impermissible income ratio of 4.26%, which means 4.26% 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 Enphase Energy, Inc.'s key financial metrics?

Enphase Energy, Inc. has a market capitalization of $5.0B, trailing P/E ratio of 29.3, and revenue of $1.5B. The company maintains a gross margin of 30.4% and a net margin of 11.7%. Return on equity stands at 17.9%.

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.