What is A. O. Smith Corporation's Shariah compliance score?

A. O. Smith Corporation (AOS) has a Shariah compliance score of 96/100 (Grade: A+, Excellent) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does A. O. Smith Corporation pass AAOIFI screening?

A. O. Smith Corporation (AOS) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (AOS: 2.3%), (3) interest-bearing deposits below 30% (AOS: 2.3%), and (4) prohibited income below 5% (AOS: 0.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for A. O. Smith Corporation stock?

A. O. Smith Corporation (AOS) has a non-permissible income ratio of 0.00%. Muslim investors should purify this percentage of any dividends received and capital gains realized from AOS shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen A. O. Smith Corporation for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for A. O. Smith Corporation (AOS) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about AOS's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

AOS: Is A. O. Smith Corporation Halal?

A. O. Smith Corporation

NYSEIndustrialsUS

$58.85

-2.78%

Market Cap: 8.2B

Compliance Status

Halal

Screened on Jul 20, 2026 · AAOIFI Standard 21

A+

Excellent

96Score

Is A. O. Smith Corporation (AOS) halal? Halal. Based on AAOIFI screening, A. O. Smith Corporation passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 96/100 (Grade: A+).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

2.3% of 30.0% limit

What this means for you

You can own AOS

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

No purification owed

Based on the latest screening, none of its income comes from prohibited sources.

About A. O. Smith Corporation

A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World. The company's product portfolio is extensive, featuring residential and commercial water heaters (gas, heat pump, and electric models), boilers, storage tanks, and various water treatment systems. These products cater to a wide range of applications, including homes, apartments, and condominiums, as well as commercial entities such as restaurants, hotels, office buildings, laundries, car washes, small businesses, hospitals, and schools. Specific offerings include diverse water treatment products like point-of-entry water softeners, well water purification systems, whole-home filtration units, portable filtration bottles, point-of-use carbon filters, and reverse osmosis systems, designed for residential, restaurant, hotel, and office use. A. O. Smith also supplies food and beverage filtration products, expansion tanks, commercial solar water heating installations, and heaters for swimming pools and spas, along with associated components. Advanced heating solutions further encompass heat pumps, electric wall-hung units, gas tankless heaters, combi-boilers, and integrated heat pump and solar water heaters. Products are primarily sold under established brands such as A. O. Smith, State, and Lochinvar, in addition to specialized water softener brands. The company leverages various distribution channels, including independent wholesale plumbing distributors, retail outlets like hardware and home center chains, and manufacturer representative firms. Its Aquasana-branded products are sold directly to consumers through e-commerce platforms and other online retailers. Founded in 1874, A. O. Smith Corporation maintains its corporate headquarters in Milwaukee, Wisconsin.

Sector: Industrials · Industry: Industrial - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 20, 2026

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

Is A. O. Smith Corporation (AOS) halal to invest in?

Based on AAOIFI Standard 21 screening, A. O. Smith Corporation (AOS) is rated Halal with a compliance grade of A+ (Excellent). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did A. O. Smith Corporation get a A+ compliance rating?

A. O. Smith Corporation (AOS) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 2.3% (limit 30%); interest-bearing deposits of 2.3% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change A. O. Smith Corporation's Shariah verdict?

A. O. Smith Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is A. O. Smith Corporation re-screened for Shariah compliance?

A. O. Smith Corporation (AOS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 20, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.