Is ESCO TECHNOLOGIES INC (ESE) Halal?
Shariah Screening — 5 Standards
Based on financial data from September 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 3.3% / 30% | 1.5% / 30% | 5.0% / 30% | 0.25% / 5% | ✓ HALAL |
| DJIM | 3.3% / 33% | 1.5% / 33% | 5.0% / 33% | 0.25% / 5% | ✓ HALAL |
| MSCI | 9.6% / 33% | 4.2% / 33% | 14.3% / 33% | 0.25% / 5% | ✓ HALAL |
| S&P | 3.3% / 33% | 1.5% / 33% | 5.0% / 33% | 0.25% / 5% | ✓ HALAL |
| FTSE | 9.6% / 33% | 4.2% / 33% | 14.3% / 50% | 0.25% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 41.9% | |
| Operating Margin | 8.8% | |
| Net Margin | 26.0% | |
| Return on Equity (ROE) | 8.9% | |
| Return on Assets (ROA) | 5.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $242M |
| Free Cash Flow | $190M |
| Total Debt | $230M |
| Debt-to-Equity | 22.1 |
| Current Ratio | 1.3 |
| Total Assets | $2.4B |
Price & Trading
| Last Close | $277.63 |
| 50-Day MA | $259.08 |
| 200-Day MA | $217.07 |
| Avg Volume | 210K |
| Beta | 1.2 |
|
52-Week Range
$134.78
| |
About ESCO TECHNOLOGIES INC (ESE)
ESCO Technologies Inc. provides engineered components and systems for aviation, navy, defense, and industrial customers. The Aerospace & Defense segment designs and manufactures specialty filtration products, including hydraulic filter elements and fluid control devices used in commercial and defense aerospace applications; miniature electro-explosive devices for military aircraft ejection seats and missile arming devices; manufactures and sells mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries; designs, develops and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and provides mission-critical signature and power management solutions. The Utility Solutions Group segment develops, manufactures, and delivers diagnostic testing solutions; and designs and manufactures decision support tools for the renewable energy industry, primarily wind and solar. The RF Test & Measurement segment designs and manufactures products and systems to measure and control RF energy for research and development, regulatory compliance, and medical and security applications; and turnkey systems, such as RF test facilities and measurement systems, acoustic test enclosures, RF and magnetically shielded rooms, and secure communication facilities. This segment also supplies RF absorptive materials, filters, antennas, field probes, test cells, proprietary measurement software, and other test accessories; and offers calibration and product tests, feedthrough capacitors, high current power, telephone, data and control line filters, and high-altitude electromagnetic protection filters. It distributes its products through distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in Saint Louis, Missouri.
Purification Calculator
As a halal stock with 0.25% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ESCO TECHNOLOGIES INC (ESE) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ESCO TECHNOLOGIES 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 ESCO TECHNOLOGIES INC's debt ratio?
ESCO TECHNOLOGIES INC's debt ratio is 3.3% 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 9.6%.
Does ESCO TECHNOLOGIES INC require dividend purification?
Yes, ESCO TECHNOLOGIES INC has an impermissible income ratio of 0.25%, which means 0.25% 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 ESCO TECHNOLOGIES INC's key financial metrics?
ESCO TECHNOLOGIES INC has a market capitalization of $7.2B, trailing P/E ratio of 58.2, and revenue of $1.1B. The company maintains a gross margin of 41.9% and a net margin of 26.0%. Return on equity stands at 8.9%.
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.