Is POWER INTEGRATIONS INC (POWI) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.0% / 30% | 9.8% / 30% | 0.7% / 30% | 2.43% / 5% | ✓ HALAL |
| DJIM | 0.0% / 33% | 9.8% / 33% | 0.7% / 33% | 2.43% / 5% | ✓ HALAL |
| MSCI | 0.0% / 33% | 32.3% / 33% | 2.4% / 33% | 2.43% / 5% | ✓ HALAL |
| S&P | 0.0% / 33% | 9.8% / 33% | 0.7% / 33% | 2.43% / 5% | ✓ HALAL |
| FTSE | 0.0% / 33% | 32.3% / 33% | 2.4% / 50% | 2.43% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 54.5% | |
| Operating Margin | 19.5% | |
| Net Margin | 5.0% | |
| Return on Equity (ROE) | 3.1% | |
| Return on Assets (ROA) | 1.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $112M |
| Free Cash Flow | $87M |
| Debt-to-Equity | 2.8 |
| Current Ratio | 6.5 |
| Total Assets | $772M |
Price & Trading
| Last Close | $50.05 |
| 50-Day MA | $46.77 |
| 200-Day MA | $44.70 |
| Avg Volume | 926K |
| Beta | 1.4 |
|
52-Week Range
$30.86
| |
About POWER INTEGRATIONS INC (POWI)
Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.
Purification Calculator
As a halal stock with 2.43% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is POWER INTEGRATIONS INC (POWI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), POWER INTEGRATIONS 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 POWER INTEGRATIONS INC's debt ratio?
POWER INTEGRATIONS INC's debt ratio is 0.0% 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 0.0%.
Does POWER INTEGRATIONS INC require dividend purification?
Yes, POWER INTEGRATIONS INC has an impermissible income ratio of 2.43%, which means 2.43% 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 POWER INTEGRATIONS INC's key financial metrics?
POWER INTEGRATIONS INC has a market capitalization of $2.7B, trailing P/E ratio of 126.9, and revenue of $444M. The company maintains a gross margin of 54.5% and a net margin of 5.0%. Return on equity stands at 3.1%.
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.