Is Energy Recovery, Inc. (ERII) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.7% / 30% | 13.4% / 30% | 13.6% / 30% | 2.68% / 5% | ✓ HALAL |
| DJIM | 1.7% / 33% | 13.4% / 33% | 13.6% / 33% | 2.68% / 5% | ✓ HALAL |
| MSCI | 4.1% / 33% | 32.5% / 33% | 33.1% / 33% | 2.68% / 5% | ✓ HALAL |
| S&P | 1.7% / 33% | 13.4% / 33% | 13.6% / 33% | 2.68% / 5% | ✓ HALAL |
| FTSE | 4.1% / 33% | 32.5% / 33% | 33.1% / 50% | 2.68% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 65.1% | |
| Operating Margin | 46.5% | |
| Net Margin | 17.0% | |
| Return on Equity (ROE) | 11.0% | |
| Return on Assets (ROA) | 6.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $19M |
| Free Cash Flow | $17M |
| Total Debt | $9M |
| Debt-to-Equity | 4.6 |
| Current Ratio | 10.4 |
| Total Assets | $232M |
Price & Trading
| Last Close | $9.94 |
| 50-Day MA | $13.01 |
| 200-Day MA | $14.06 |
| Avg Volume | 577K |
| Beta | 1.1 |
|
52-Week Range
$9.35
| |
About Energy Recovery, Inc. (ERII)
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation pumps for use in water treatment industries, including seawater and brackish desalination, and wastewater treatment. It also provides PX G1300, which reduces energy consumption and operating costs of carbon dioxide-based refrigeration systems; and spare parts, as well as repair, field, and commissioning services. The company sells its products under the ERI, PX, PX Pressure Exchanger, Pressure Exchanger, Ultra High-Pressure PX, PX G1300, PX PowerTrain, PX G, AT, and Aquabold brands to supermarket chains, cold storage facilities, refrigeration system installers or OEMs, and other industrial users; and aftermarket customers consisting of desalination plant owners and operators. Energy Recovery, Inc. was incorporated in 1992 and is headquartered in San Leandro, California.
Purification Calculator
As a halal stock with 2.68% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Energy Recovery, Inc. (ERII) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Energy Recovery, 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 Energy Recovery, Inc.'s debt ratio?
Energy Recovery, Inc.'s debt ratio is 1.7% 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 4.1%.
Does Energy Recovery, Inc. require dividend purification?
Yes, Energy Recovery, Inc. has an impermissible income ratio of 2.68%, which means 2.68% 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 Energy Recovery, Inc.'s key financial metrics?
Energy Recovery, Inc. has a market capitalization of $523M, trailing P/E ratio of 23.5, and revenue of $135M. The company maintains a gross margin of 65.1% and a net margin of 17.0%. Return on equity stands at 11.0%.
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.