Is Shoals Technologies Group, Inc. (SHLS) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 18.3% / 30% | 0.8% / 30% | 15.8% / 30% | 0.06% / 5% | ✓ HALAL |
| DJIM | 18.3% / 33% | 0.8% / 33% | 15.8% / 33% | 0.06% / 5% | ✓ HALAL |
| MSCI | 19.4% / 33% | 0.8% / 33% | 16.7% / 33% | 0.06% / 5% | ✓ HALAL |
| S&P | 18.3% / 33% | 0.8% / 33% | 15.8% / 33% | 0.06% / 5% | ✓ HALAL |
| FTSE | 19.4% / 33% | 0.8% / 33% | 16.7% / 50% | 0.06% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 35.0% | |
| Operating Margin | 16.1% | |
| Net Margin | 7.1% | |
| Return on Equity (ROE) | 5.8% | |
| Return on Assets (ROA) | 5.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $17M |
| Free Cash Flow | -$16M |
| Total Debt | $175M |
| Debt-to-Equity | 29.8 |
| Current Ratio | 2.0 |
| Total Assets | $904M |
Price & Trading
| Last Close | $6.47 |
| 50-Day MA | $8.12 |
| 200-Day MA | $7.60 |
| Avg Volume | 4.7M |
| Beta | 1.8 |
|
52-Week Range
$2.92
| |
About Shoals Technologies Group, Inc. (SHLS)
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components in the United States and internationally. The company designs, manufactures, and sells various products used by the solar and battery storage industries, including solar big lead assembly (BLA) solutions; homeruns, interconnection, and extension solutions; combiners and re-combiners; load break disconnects and transition solutions; wireless performance monitoring; and battery energy storage solutions (BESS). It also offers original equipment manufacturer (OEM) components; and technical support services during installation and the transition to operations and maintenance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.
Purification Calculator
As a halal stock with 0.06% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Shoals Technologies Group, Inc. (SHLS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Shoals Technologies Group, 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 Shoals Technologies Group, Inc.'s debt ratio?
Shoals Technologies Group, Inc.'s debt ratio is 18.3% 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 19.4%.
Does Shoals Technologies Group, Inc. require dividend purification?
Yes, Shoals Technologies Group, Inc. has an impermissible income ratio of 0.06%, which means 0.06% 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 Shoals Technologies Group, Inc.'s key financial metrics?
Shoals Technologies Group, Inc. has a market capitalization of $1.1B, trailing P/E ratio of 33.1, and revenue of $475M. The company maintains a gross margin of 35.0% and a net margin of 7.1%. Return on equity stands at 5.8%.
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.