Is TECOGEN INC. (TGEN) Halal?

NYSE Industrials United States $77M
✓ HALAL
Confidence: 95/100
TECOGEN INC. (TGEN) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 4.2% against the AAOIFI threshold of 30%, TECOGEN 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 December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 4.2%
/ 30%
6.1%
/ 30%
7.2%
/ 30%
0.91%
/ 5%
✓ HALAL
DJIM 4.2%
/ 33%
6.1%
/ 33%
7.2%
/ 33%
0.91%
/ 5%
✓ HALAL
MSCI 12.0%
/ 33%
17.4%
/ 33%
20.7%
/ 33%
0.91%
/ 5%
✓ HALAL
S&P 4.2%
/ 33%
6.1%
/ 33%
7.2%
/ 33%
0.91%
/ 5%
✓ HALAL
FTSE 12.0%
/ 33%
17.4%
/ 33%
20.7%
/ 50%
0.91%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.30
P/B Ratio
3.5
EV/EBITDA
-10.7
EV: $67M
Revenue
$23M
Growth: -12.5%
Beta
1.3
High volatility
Current Ratio
3.1

Profitability

Gross Margin 36.3%
Operating Margin -56.9%
Net Margin -30.5%
Return on Equity (ROE) -52.2%
Return on Assets (ROA) -13.1%

Cash Flow & Balance Sheet

Operating Cash Flow$4M
Free Cash Flow$3M
Total Debt$4M
Debt-to-Equity13.1
Current Ratio3.1
Total Assets$31M

Price & Trading

Last Close$2.62
50-Day MA$3.50
200-Day MA$6.49
Avg Volume485K
Beta1.3
52-Week Range
$1.81
$12.07

About TECOGEN INC. (TGEN)

CEO
Dr. Abinand Rangesh Ph.D.
Employees
119
Sector
Industrials
Industry
Electrical Equipment & Parts
Country
United States
Exchange
NYSE
Market Cap
$77M
Currency
USD

Tecogen Inc., together with its subsidiaries, designs, manufactures, markets, and maintains cogeneration products for multi-family residential, commercial, recreational, and industrial use in the United States. It operates in three segments: Products, Services, and Energy Production. The Products segment designs, manufactures, and sells industrial and commercial cogeneration systems to hospitals and nursing homes, schools and universities, health clubs and spas, hotels and motels, office and retail buildings, food and beverage processors, multi-unit residential buildings, laundries, ice rinks, swimming pools, factories, municipal buildings, indoor agriculture, military installations, and indoor growing facilities; and refrigeration compressors for cold storage, wineries, dairies, ice rinks, and food processing industries. Its Services segment provides operations and maintenance services; and parts sales, and installation services. The Energy Production segment installs, operates, and maintains distributed own generation electricity systems and sells the energy generated by such systems in the form of electricity, heat, hot water, and cooling to its customers under long-term energy sales agreements. The company also offers natural gas-powered cogeneration systems for water and space heating, and/or air conditioning. Its product portfolio includes InVerde e+ and TecoPower cogeneration units for the supply electricity and hot water; Tecochill, an air-conditioning and refrigeration chiller, and hybrid-drive air-cooled and gas engine-driven chiller to produce chilled water and hot water; Tecofrost, a gas engine-driven refrigeration compressor to circulate refrigerant and provide hot water as a byproduct; and Ultera, an emissions control technology. It sells its products through in-house marketing, as well as independent sales agents and representatives. Tecogen Inc. was incorporated in 2000 and is headquartered in North Billerica, Massachusetts.

Purification Calculator

As a halal stock with 0.91% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is TECOGEN INC. (TGEN) halal to invest in?

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

TECOGEN INC.'s debt ratio is 4.2% 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 TECOGEN INC. require dividend purification?

Yes, TECOGEN INC. has an impermissible income ratio of 0.91%, which means 0.91% 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 TECOGEN INC.'s key financial metrics?

TECOGEN INC. has a market capitalization of $77M, and revenue of $23M. The company maintains a gross margin of 36.3% and a net margin of -30.5%. Return on equity stands at -52.2%.

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.