Is Forgent Power Solutions, Inc. (FPS) Halal?

NYSE Industrials United States $9.4B
✓ HALAL
Confidence: 95/100
Forgent Power Solutions, Inc. (FPS) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 6.5% against the AAOIFI threshold of 30%, Forgent Power Solutions, Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Electrical Equipment & Parts), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.5%
/ 30%
1.1%
/ 30%
1.6%
/ 30%
0.74%
/ 5%
✓ HALAL
DJIM 6.5%
/ 33%
1.1%
/ 33%
1.6%
/ 33%
0.74%
/ 5%
✓ HALAL
MSCI 41.0%
/ 33%
7.2%
/ 33%
10.4%
/ 33%
0.74%
/ 5%
✗ NOT HALAL
S&P 6.5%
/ 33%
1.1%
/ 33%
1.6%
/ 33%
0.74%
/ 5%
✓ HALAL
FTSE 41.0%
/ 33%
7.2%
/ 33%
10.4%
/ 50%
0.74%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.03
P/B Ratio
18.5
EV/EBITDA
55.2
EV: $8.0B
Revenue
$753M
Growth: 69.0%
Current Ratio
1.7

Profitability

Gross Margin 34.6%
Operating Margin 6.8%
Net Margin 1.5%

Cash Flow & Balance Sheet

Operating Cash Flow$45M
Free Cash Flow-$39M
Total Debt$630M
Debt-to-Equity120.2
Current Ratio1.7
Total Assets$1.5B

Price & Trading

Last Close$30.06
50-Day MA$33.54
200-Day MA$33.54
Avg Volume4.1M
52-Week Range
$25.95
$37.53

About Forgent Power Solutions, Inc. (FPS)

CEO
Mr. Gary John Niederpruem
Employees
2,000
Sector
Industrials
Industry
Electrical Equipment & Parts
Country
United States
Exchange
NYSE
Market Cap
$9.4B
Currency
USD

Forgent Power Solutions, Inc designs and manufactures electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities. The company's products include automatic transfer switches (ATS), gear eHouses, generator connection cabinets, low voltage switchgear, low voltage transformers, medium voltage switchgear, medium voltage VPI transformers, padmount transformers, panelboards, paralleling switchgear, PDU transformers, power distribution units, power skids, remote power panels, substation transformers, switchboards, tap boxes, and UPS eHouses. It also provides maintenance, testing, repair, modernization, start-up and commissioning and aftermarket retrofit services. It serves technology, power, utility and industrial companies. The company was founded in 2023 and is based in Dayton, Minnesota.

Purification Calculator

As a halal stock with 0.74% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Industrials

Frequently Asked Questions

Is Forgent Power Solutions, Inc. (FPS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Forgent Power Solutions, 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 Forgent Power Solutions, Inc.'s debt ratio?

Forgent Power Solutions, Inc.'s debt ratio is 6.5% 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 41.0%.

Does Forgent Power Solutions, Inc. require dividend purification?

Yes, Forgent Power Solutions, Inc. has an impermissible income ratio of 0.74%, which means 0.74% 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 Forgent Power Solutions, Inc.'s key financial metrics?

Forgent Power Solutions, Inc. has a market capitalization of $9.4B, and revenue of $753M. The company maintains a gross margin of 34.6% and a net margin of 1.5%.

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.