Is Hammond Power Solutions, Inc. HPS.A stock halal to invest in?

Yes, as of August 2026, Hammond Power Solutions, Inc. stock (HPS.A) is 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. Hammond Power Solutions, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 100%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Hammond Power Solutions, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Hammond Power Solutions, Inc. HPS.A reviewed for Shariah compliance?

Tabadulat reviews Hammond Power Solutions, Inc. HPS.A 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screening ensures the status shown for Hammond Power Solutions, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Hammond Power Solutions, Inc. stock (HPS.A) passes 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. Hammond Power Solutions, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Hammond Power Solutions, Inc. stock (HPS.A) 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). Hammond Power Solutions, 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 Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Hammond Power Solutions, Inc. stock (HPS.A) 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. Hammond Power Solutions, 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 Hammond Power Solutions, Inc. HPS.A stock?

As of August 2026, the dividend purification factor for Hammond Power Solutions, Inc. (HPS.A) is 100%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Hammond Power Solutions, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Hammond Power Solutions, Inc. stock (HPS.A) 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. Hammond Power Solutions, 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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Hammond Power Solutions, Inc.

TSX

Shariah-Compliant

Not Shariah

HPS.A

About

Hammond Power Solutions, Inc.

HPS.A

Hammond Power Solutions Inc. specializes in the design and manufacture of dry-type electrical transformers for industrial and commercial use. Its primary purpose is to supply products that facilitate safe and efficient power distribution and electrical control in facilities. These transformers are crucial in managing voltage levels, ensuring compatibility between power systems and machinery, and enabling the safe operation of electrical devices. Hammond Power Solutions serves a diverse range of sectors, including mining, energy, transportation, and infrastructure, offering custom solutions tailored to unique industry needs. As a key player in the energy infrastructure market, the company contributes significantly to system reliability and efficiency improvements, addressing the growing demand for robust and sustainable electrical systems. Headquartered in Guelph, Ontario, Hammond Power Solutions has positioned itself as a leading manufacturer with a strong presence in North America and expanding operations globally, playing an essential role in modern infrastructure development and energy management.

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Employees:

2121

Website:

https://www.hammondpowersolutions.com

HPS.A

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Hammond Power Solutions, Inc.

About

Hammond Power Solutions, Inc.

HPS.A

Frequently asked questions

Is Hammond Power Solutions, Inc. HPS.A stock halal to invest in?

How often is Hammond Power Solutions, Inc. HPS.A reviewed for Shariah compliance?

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Non Permissible Income criteria?

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Interest Bearing Investments criteria?

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Hammond Power Solutions, Inc. HPS.A stock?

Does Hammond Power Solutions, Inc. HPS.A pass the AAOIFI Preference Share screen?

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