Is FRANKLIN ELECTRIC CO INC (FELE) Halal?

NASDAQ Industrials United States $4.0B
✓ HALAL
Confidence: 95/100
FRANKLIN ELECTRIC CO INC (FELE) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.5% against the AAOIFI threshold of 30%, FRANKLIN ELECTRIC CO INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), 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 5.5%
/ 30%
2.3%
/ 30%
5.8%
/ 30%
3.02%
/ 5%
✓ HALAL
DJIM 5.5%
/ 33%
2.3%
/ 33%
5.8%
/ 33%
3.02%
/ 5%
✓ HALAL
MSCI 12.0%
/ 33%
5.1%
/ 33%
12.7%
/ 33%
3.02%
/ 5%
✓ HALAL
S&P 5.5%
/ 33%
2.3%
/ 33%
5.8%
/ 33%
3.02%
/ 5%
✓ HALAL
FTSE 12.0%
/ 33%
5.1%
/ 33%
12.7%
/ 50%
3.02%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
28.1
Forward: 17.6
EPS
$3.22
Dividend Yield
124.0%
Payout: 32.9%
P/B Ratio
3.0
EV/EBITDA
12.3
EV: $4.1B
Revenue
$2.1B
Growth: 4.3%
Beta
1.1
Average volatility
Current Ratio
2.8

Profitability

Gross Margin 35.5%
Operating Margin 10.3%
Net Margin 6.9%
Return on Equity (ROE) 11.5%
Return on Assets (ROA) 9.1%

Cash Flow & Balance Sheet

Operating Cash Flow$239M
Free Cash Flow$194M
Total Debt$234M
Debt-to-Equity17.6
Current Ratio2.8
Total Assets$1.9B

Price & Trading

Last Close$91.98
50-Day MA$98.18
200-Day MA$95.50
Avg Volume354K
Beta1.1
52-Week Range
$78.87
$111.53

About FRANKLIN ELECTRIC CO INC (FELE)

CEO
Mr. Joseph A. Ruzynski
Employees
6,500
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NASDAQ
Market Cap
$4.0B
Currency
USD

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Water Systems, Energy Systems, and Distribution segments. The Water Systems segment offers motors, pumps, water treatment systems, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater in a range of residential, agricultural, municipal, and industrial applications; and electronic drives and controls for the motors, which control functionality and provide protection from various hazards, such as electrical surges, over-heating, and dry wells or dry tanks. Its Energy Systems segment produces and markets pumps, motors, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in energy system applications; and components between the tanks and the dispensers, including submersible pumps, station hardware, piping, and corrosion control systems. This segment serves other energy markets, such as power reliability systems, including intelligent electronic devices that are designed for online monitoring for the power utility, hydroelectric, rail, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells its products to wholesale and retail distributors, specialty distributors, and industrial and petroleum equipment distributors, as well as to oil and utility companies, and original equipment manufacturers. The company was founded in 1944 and is headquartered in Fort Wayne, Indiana.

Purification Calculator

As a halal stock with 3.02% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is FRANKLIN ELECTRIC CO INC (FELE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), FRANKLIN ELECTRIC CO 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 FRANKLIN ELECTRIC CO INC's debt ratio?

FRANKLIN ELECTRIC CO INC's debt ratio is 5.5% 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 12.0%.

Does FRANKLIN ELECTRIC CO INC require dividend purification?

Yes, FRANKLIN ELECTRIC CO INC has an impermissible income ratio of 3.02%, which means 3.02% 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 FRANKLIN ELECTRIC CO INC's key financial metrics?

FRANKLIN ELECTRIC CO INC has a market capitalization of $4.0B, trailing P/E ratio of 28.1, and revenue of $2.1B. The company maintains a gross margin of 35.5% and a net margin of 6.9%. Return on equity stands at 11.5%.

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.