AWKNot HalalF
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Compliance Status

Not Halal

Screened on Oct 19, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is American Water Works Company, Inc. (AWK) halal? Not Halal. Based on AAOIFI screening, American Water Works Company, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

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HalalScreener rates American Water Works Company, Inc. (AWK) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/AWK

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

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

58.0% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding AWK

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

American Water Works Company, Inc.

AWK: Is American Water Works Company, Inc. Halal?

American Water Works Company, Inc.

NYSEUtilitiesUS

$134.94

+1.43%

Market Cap: 26.8B

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About American Water Works Company, Inc.

American Water Works Company, Inc. operates across the United States, delivering essential water and wastewater solutions via its various subsidiary companies. Its operations extend to around 1,700 communities situated across 14 states, catering to an active customer base of roughly 3.4 million. The firm caters to a broad spectrum of clients. These include individual households, commercial enterprises (such as food and beverage suppliers, property developers, and energy companies), and both public and private fire service customers. Industrial clients, like large-scale manufacturers, mining, and production facilities, also utilize its services. Furthermore, American Water Works supports public authorities, encompassing government facilities, schools, and universities, alongside other utility providers and community water and wastewater infrastructure. Beyond these, the company extends its water and wastewater provisions to numerous military installations. It also enters into agreements with municipal bodies, predominantly for the management and operation of their water and wastewater facilities, in addition to offering a range of supplementary services. The company's infrastructure is substantial, comprising approximately 80 surface water treatment plants, 480 groundwater treatment plants, and 160 wastewater treatment plants. Its vast network also includes 52,500 miles of mains for transmission, distribution, and collection, alongside 1,100 groundwater wells, 1,700 pumping stations for water and wastewater, 1,300 treated water storage facilities, and 76 dams. Overall, the company delivers drinking water, wastewater management, and ancillary services to roughly 14 million individuals across 24 states. Established in 1886, American Water Works Company, Inc. maintains its headquarters in Camden, New Jersey.

Sector: Utilities · Industry: Regulated Water

Why this does not pass

  • Interest-bearing debt is 58.0% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 19, 2026

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Utilities

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Frequently Asked Questions

Is American Water Works Company, Inc. (AWK) halal to invest in?
American Water Works Company, Inc. (AWK) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did American Water Works Company, Inc. get a F compliance rating?
American Water Works Company, Inc. (AWK) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 58.0% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change American Water Works Company, Inc.'s Shariah verdict?
American Water Works Company, Inc.'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 American Water Works Company, Inc. re-screened for Shariah compliance?
American Water Works Company, Inc. (AWK) 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: Oct 19, 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.