What is Energy Recovery, Inc.'s Shariah compliance score?

Energy Recovery, Inc. (ERII) has a Shariah compliance score of 63/100 (Grade: B, Acceptable). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Energy Recovery, Inc. pass AAOIFI screening?

Energy Recovery, Inc. (ERII) is rated Doubtful under AAOIFI Shariah screening, which is neither a clear pass nor a clear fail. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. ERII's debt-to-market-cap is 2.3%.

How much purification is needed for Energy Recovery, Inc.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Energy Recovery, Inc. (ERII) using the latest financial data.

Where can I screen Energy Recovery, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Energy Recovery, Inc. (ERII) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

ERIIDoubtfulB

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Compliance Status

Doubtful

Screened on Oct 13, 2026 · AAOIFI Standard 21

Acceptable

63Score

Is Energy Recovery, Inc. (ERII) halal? Doubtful. Based on AAOIFI screening, Energy Recovery, Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 63/100 (Grade: B).

Quote this verdict

HalalScreener rates Energy Recovery, Inc. (ERII) Doubtful, 63/100, grade B under AAOIFI Standard 21, screened Oct 13, 2026. Source: https://halalscreener.app/en/stock/ERII

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

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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

What this means for you

You may own ERII, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purification amount is Pro

We have screened ERII's prohibited income, but the exact share you would need to purify is part of Pro.

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ERII: Is Energy Recovery, Inc. Halal?

Energy Recovery, Inc.

NASDAQIndustrialsUS

$6.65

Market Cap: 339.4M

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About Energy Recovery, Inc.

Energy Recovery, Inc. (ERII) is a global technology firm that engineers, manufactures, and distributes cutting-edge solutions predominantly for the seawater reverse osmosis (SWRO) desalination and industrial wastewater treatment industries. The company manages its operations through two distinct divisions: Water and Emerging Technologies. Its extensive product range includes advanced energy recovery devices, high-pressure feed and recirculation pumps, and hydraulic turbochargers and boosters. Beyond hardware, ERII also offers crucial support services such as spare parts, repair, field technical assistance, and commissioning. Furthermore, the company develops specialized solutions aimed at minimizing energy consumption in natural gas processing and in refrigeration systems that employ carbon dioxide. These various offerings are commercialized under recognized brand names including ERI, Ultra PX, PX, Pressure Exchanger, PX PowerTrain, VorTeq, IsoBoost, AT, and AquaBold. Its diverse customer base encompasses large engineering, procurement, and construction (EPC) companies, direct end-users, industry consultants, original equipment manufacturers (OEMs), and aftermarket clients. Founded in 1992, Energy Recovery, Inc. is headquartered in San Leandro, California.

Sector: Industrials · Industry: Industrial - Pollution & Treatment Controls

Why This Stock Is Doubtful

Interest-bearing deposits are close to the 30% limit.

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 13, 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

Doubtfulnow
since Sep 2026
Halal
until the change above
Not Halal
until the change above
Halal
until the change above
Not Halal
until the change above
Halal
until the change above

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

Fiscal: Q2 2026Data source: EDGAR

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Frequently Asked Questions

Is Energy Recovery, Inc. (ERII) halal to invest in?

Energy Recovery, Inc. (ERII) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.

Why did Energy Recovery, Inc. get a B compliance rating?

Energy Recovery, Inc. (ERII) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 2.3% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Energy Recovery, Inc.'s Shariah verdict?

Energy Recovery, 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 Energy Recovery, Inc. re-screened for Shariah compliance?

Energy Recovery, Inc. (ERII) 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 13, 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.