Is SOLAREDGE TECHNOLOGIES, INC. (SEDG) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 20.6% / 30% | 24.5% / 30% | 19.7% / 30% | 1.39% / 5% | ✓ HALAL |
| DJIM | 20.6% / 33% | 24.5% / 33% | 19.7% / 33% | 1.39% / 5% | ✓ HALAL |
| MSCI | 19.1% / 33% | 22.6% / 33% | 18.2% / 33% | 1.39% / 5% | ✓ HALAL |
| S&P | 20.6% / 33% | 24.5% / 33% | 19.7% / 33% | 1.39% / 5% | ✓ HALAL |
| FTSE | 19.1% / 33% | 22.6% / 33% | 18.2% / 50% | 1.39% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.4% | |
| Operating Margin | -9.3% | |
| Net Margin | -34.2% | |
| Return on Equity (ROE) | -74.7% | |
| Return on Assets (ROA) | -6.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $104M |
| Free Cash Flow | $81M |
| Total Debt | $416M |
| Debt-to-Equity | 94.6 |
| Current Ratio | 2.2 |
| Total Assets | $2.2B |
Price & Trading
| Last Close | $50.27 |
| 50-Day MA | $38.08 |
| 200-Day MA | $32.96 |
| Avg Volume | 3.3M |
| Beta | 1.6 |
|
52-Week Range
$11.00
| |
About SOLAREDGE TECHNOLOGIES, INC. (SEDG)
SolarEdge Technologies, Inc., together with its subsidiaries, operates as an energy technology company in the United States, Europe, and internationally. The company offers power optimizers and DC-to-AC inverters; Storage Solutions, such as home battery 400V and CSS-OD solution; EV chargers for residential and commercial applications; SolarEdge ONE, an energy optimization system; and cloud-based monitoring platform. It also provides mySolarEdge app, which enables system owners to track their real-time system production and household energy consumption; SolarEdge Go app, a mobile application for SolarEdge installers, integrating installation, management, and service capabilities; designer platform, a web-based tool; and mapper application for registering the physical layout of new PV sites. In addition, the company offers SetApp application to activate and configure SolarEdge inverters; grid services; and pre-sales support, ongoing trainings, and technical support before, during, and after installation based on its operation structure. It serves solar installers, solar distributors, and electrical equipment wholesalers, as well as providers of PV systems to residential and commercial end users through distributors and electrical equipment wholesalers, and directly to solar installers and engineering, procurement, and construction firms, or EPCs. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya Pituach, Israel.
Purification Calculator
As a halal stock with 1.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SOLAREDGE TECHNOLOGIES, INC. (SEDG) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SOLAREDGE 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 SOLAREDGE TECHNOLOGIES, INC.'s debt ratio?
SOLAREDGE TECHNOLOGIES, INC.'s debt ratio is 20.6% 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 19.1%.
Does SOLAREDGE TECHNOLOGIES, INC. require dividend purification?
Yes, SOLAREDGE TECHNOLOGIES, INC. has an impermissible income ratio of 1.39%, which means 1.39% 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 SOLAREDGE TECHNOLOGIES, INC.'s key financial metrics?
SOLAREDGE TECHNOLOGIES, INC. has a market capitalization of $3.1B, and revenue of $1.2B. The company maintains a gross margin of 15.4% and a net margin of -34.2%. Return on equity stands at -74.7%.
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.