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

No, as of August 2026, Energy Recovery, Inc. stock (ERII) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Energy Recovery, Inc. currently does not meet the threshold for the non-permissible income screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Energy Recovery, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Energy Recovery, Inc. ERII reviewed for Shariah compliance?

Tabadulat reviews Energy Recovery, Inc. ERII for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Energy Recovery, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Energy Recovery, Inc. ERII pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Energy Recovery, Inc. stock (ERII) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Energy Recovery, Inc.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Energy Recovery, Inc. ERII pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Energy Recovery, Inc. stock (ERII) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Energy Recovery, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Energy Recovery, Inc. ERII pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Energy Recovery, Inc. stock (ERII) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Energy Recovery, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Energy Recovery, Inc. ERII stock?

Energy Recovery, Inc. (ERII) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Energy Recovery, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Energy Recovery, Inc. ERII pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Energy Recovery, Inc. stock (ERII) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Energy Recovery, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Energy Recovery, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

ERII

About

Energy Recovery, Inc.

ERII

Energy Recovery Inc. is a leading industrial company that focuses on the innovation and development of energy solutions aimed at enhancing efficiency in fluid processing systems. The company is renowned for its pressure exchanger technology, which is pivotal in desalination processes, substantially reducing energy consumption and operational costs for water treatment facilities. Beyond its core application in desalination, Energy Recovery Inc. extends its expertise to various other sectors such as oil and gas, chemical manufacturing, and industrial wastewater, offering products that improve system performance and sustainability. Energy Recovery Inc. plays a critical role in the market by enabling industries to minimize environmental impact while boosting economic value through superior energy efficiency. This intersection of sustainable practices and industrial advancement positions the company as a key contributor to the global effort in energy conservation and climate change mitigation.

Sector:

Industrials

Industry:

Pollution & Treatment Controls

Employees:

254

Website:

https://www.energyrecovery.com

ERII

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Energy Recovery, Inc.

About

Energy Recovery, Inc.

ERII

Frequently asked questions

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

How often is Energy Recovery, Inc. ERII reviewed for Shariah compliance?

Does Energy Recovery, Inc. ERII pass the AAOIFI Non Permissible Income criteria?

Does Energy Recovery, Inc. ERII pass the AAOIFI Interest Bearing Investments criteria?

Does Energy Recovery, Inc. ERII pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Energy Recovery, Inc. ERII stock?

Does Energy Recovery, Inc. ERII pass the AAOIFI Preference Share screen?

Can I buy Energy Recovery (ERII) stock on Tabadulat?

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