Is Epsilon Energy Ltd. (EPSN) Halal?

NASDAQ Energy United States $187M
✓ HALAL
Confidence: 95/100
Epsilon Energy Ltd. (EPSN) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, Epsilon Energy Ltd. comfortably passes the key financial ratio tests. The company operates in the Energy sector (Oil & Gas E&P), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
3.8%
/ 30%
3.4%
/ 30%
1.56%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
3.8%
/ 33%
3.4%
/ 33%
1.56%
/ 5%
✓ HALAL
MSCI 0.4%
/ 33%
5.4%
/ 33%
4.9%
/ 33%
1.56%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
3.8%
/ 33%
3.4%
/ 33%
1.56%
/ 5%
✓ HALAL
FTSE 0.4%
/ 33%
5.4%
/ 33%
4.9%
/ 50%
1.56%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.25
Dividend Yield
399.0%
Payout: 92.6%
P/B Ratio
1.5
EV/EBITDA
6.9
EV: $231M
Revenue
$32M
Growth: 65.7%
Beta
-0.0
Low volatility
Current Ratio
1.3

Profitability

Gross Margin 71.2%
Operating Margin 43.9%
Net Margin -11.2%
Return on Equity (ROE) -5.2%
Return on Assets (ROA) 6.2%

Cash Flow & Balance Sheet

Operating Cash Flow$17M
Free Cash Flow-$20M
Total Debt$476,911
Debt-to-Equity41.0
Current Ratio1.3
Total Assets$120M

Price & Trading

Last Close$6.04
50-Day MA$5.19
200-Day MA$5.50
Avg Volume200K
Beta-0.0
52-Week Range
$4.20
$8.50

About Epsilon Energy Ltd. (EPSN)

CEO
Mr. Jason P. Stabell
Employees
27
Sector
Energy
Industry
Oil & Gas E&P
Country
United States
Exchange
NASDAQ
Market Cap
$187M
Currency
USD

Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, exploration, development, gathering, and production of natural oil and gas reserves. The company operates through Upstream and Gathering System segments. It has natural gas production in the Appalachian Basin in Pennsylvania; oil, natural gas liquids, and natural gas production in the Powder River Basin in Wyoming, the Permian Basin in Texas and New Mexico, and the Western Canadian Sedimentary Basin in Alberta. Epsilon Energy Ltd. was incorporated in 2005 and is based in Houston, Texas.

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 Epsilon Energy Ltd. (EPSN) halal to invest in?

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

Epsilon Energy Ltd.'s debt ratio is 0.3% 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 0.4%.

Does Epsilon Energy Ltd. require dividend purification?

Yes, Epsilon Energy 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 Epsilon Energy Ltd.'s key financial metrics?

Epsilon Energy Ltd. has a market capitalization of $187M, and revenue of $32M. The company maintains a gross margin of 71.2% and a net margin of -11.2%. Return on equity stands at -5.2%.

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.