Is ESAB Corp (ESAB) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 20.1% / 30% | 2.8% / 30% | 6.8% / 30% | 0.98% / 5% | ✓ HALAL |
| DJIM | 20.1% / 33% | 2.8% / 33% | 6.8% / 33% | 0.98% / 5% | ✓ HALAL |
| MSCI | 28.2% / 33% | 3.9% / 33% | 9.5% / 33% | 0.98% / 5% | ✓ HALAL |
| S&P | 20.1% / 33% | 2.8% / 33% | 6.8% / 33% | 0.98% / 5% | ✓ HALAL |
| FTSE | 28.2% / 33% | 3.9% / 33% | 9.5% / 50% | 0.98% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 36.9% | |
| Operating Margin | 16.8% | |
| Net Margin | 8.0% | |
| Return on Equity (ROE) | 12.9% | |
| Return on Assets (ROA) | 6.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $261M |
| Free Cash Flow | $213M |
| Total Debt | $1.3B |
| Debt-to-Equity | 60.8 |
| Current Ratio | 1.9 |
| Total Assets | $4.8B |
Price & Trading
| Last Close | $92.45 |
| 50-Day MA | $116.47 |
| 200-Day MA | $116.93 |
| Avg Volume | 469K |
| Beta | 1.2 |
|
52-Week Range
$89.70
| |
About ESAB Corp (ESAB)
ESAB Corporation engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment. It offers its products through independent distributors and direct salespeople. It operates in Europe, Asia Pacific, South America, and the Middle East. ESAB Corporation was founded in 1904 and is headquartered in North Bethesda, Maryland.
Purification Calculator
As a halal stock with 0.98% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ESAB Corp (ESAB) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ESAB Corp 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 ESAB Corp's debt ratio?
ESAB Corp's debt ratio is 20.1% 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 28.2%.
Does ESAB Corp require dividend purification?
Yes, ESAB Corp has an impermissible income ratio of 0.98%, which means 0.98% 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 ESAB Corp's key financial metrics?
ESAB Corp has a market capitalization of $5.7B, trailing P/E ratio of 22.3, and revenue of $2.8B. The company maintains a gross margin of 36.9% and a net margin of 8.0%. Return on equity stands at 12.9%.
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.