Is Advanced Drainage Systems, Inc. WMS stock halal to invest in?

Yes, as of August 2026, Advanced Drainage Systems, Inc. stock (WMS) 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. Advanced Drainage Systems, 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 99.19%. 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 Advanced Drainage Systems, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Advanced Drainage Systems, Inc. WMS reviewed for Shariah compliance?

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screening ensures the status shown for Advanced Drainage Systems, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, Advanced Drainage Systems, Inc. stock (WMS) 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. Advanced Drainage Systems, 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 Advanced Drainage Systems, Inc. WMS pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Advanced Drainage Systems, Inc. stock (WMS) 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). Advanced Drainage Systems, 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 Advanced Drainage Systems, Inc. WMS pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Advanced Drainage Systems, Inc. stock (WMS) 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. Advanced Drainage Systems, 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 Advanced Drainage Systems, Inc. WMS stock?

As of August 2026, the dividend purification factor for Advanced Drainage Systems, Inc. (WMS) is 99.19%. 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 Advanced Drainage Systems, 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 Advanced Drainage Systems, Inc. WMS pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Advanced Drainage Systems, Inc. stock (WMS) 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. Advanced Drainage Systems, 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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Advanced Drainage Systems, Inc.

NYSE

Shariah-Compliant

Not Shariah

WMS

About

Advanced Drainage Systems, Inc.

WMS

Advanced Drainage Systems, Inc. is a leading manufacturer and provider of innovative water management solutions in North America. The primary function of this asset is to produce and supply high-performance drainage products and services that tackle water flow and environmental challenges in both residential and commercial sectors. Notable features of its product line include an array of thermoplastic pipe products, chambers, fittings, and water treatment solutions, which are essential in agricultural, residential, commercial, and infrastructure markets. With a focus on sustainability, the company integrates recycled materials in its manufacturing processes to promote eco-friendly solutions. Advanced Drainage Systems, Inc. plays a significant role in the construction and environmental services sectors, supporting water conservation and stormwater management initiatives. Its broad distribution network and commitment to technological advancement make it a key player in addressing water management needs across diverse landscapes.

Sector:

Industrials

Industry:

Building Products & Equipment

Employees:

6000

Website:

https://www.adspipe.com

WMS

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Advanced Drainage Systems, Inc.

About

Advanced Drainage Systems, Inc.

WMS

Frequently asked questions

Is Advanced Drainage Systems, Inc. WMS stock halal to invest in?

How often is Advanced Drainage Systems, Inc. WMS reviewed for Shariah compliance?

Does Advanced Drainage Systems, Inc. WMS pass the AAOIFI Non Permissible Income criteria?

Does Advanced Drainage Systems, Inc. WMS pass the AAOIFI Interest Bearing Investments criteria?

Does Advanced Drainage Systems, Inc. WMS pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Advanced Drainage Systems, Inc. WMS stock?

Does Advanced Drainage Systems, Inc. WMS pass the AAOIFI Preference Share screen?

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