The Short Answer
Franklin Electric stock (FELE) has a qualitative business verdict that is HALAL and passes the known filing-based financial ratios, but the overall screen remains incomplete. Franklin Electric manufactures products and systems for moving and managing water and fuel.
Industrial manufacturing of pumps, motors and fluid-handling equipment is generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 11.23%, liquidity/assets of 4.23% and receivables-plus-cash/assets of 18.95%; gross interest income and activity classification remain incomplete.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
224.185 / 1,996.565
84.5 / 1,996.565
378.259 / 1,996.565
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 11.23%, liquidity/assets is 4.23% and receivables-plus-cash/assets is 18.95%; gross interest income and activity remain unavailable.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios are below the examined MSCI limits; this is not an index-membership claim and activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Franklin Electric manufactures water and fuel pumping systems, motors, drives and controls for residential, agricultural, commercial and industrial customers. The general-purpose equipment activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for downstream end uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; fuel, agricultural and customer end-use allocation remains qualitative.
Purification
The filing does not separately disclose gross interest income; ZakatInvest does not infer a purification amount or prescribe a fixed scholar-approved percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Franklin Electric's March 31, 2026 Form 10-Q.
- Interest-bearing debt combines $89.779 million of current maturities and short-term borrowings with $134.406 million of long-term debt; reported lease liabilities are operating leases and are excluded.
- Cash and cash equivalents are $80.400 million; the filing separately identifies $4.1 million of marketable securities as excess pension-plan assets and it is included conservatively; net accounts receivable are $297.859 million.
- First-quarter net sales are $500.437 million. Other income/expense is reported net and does not provide a separately reproducible gross interest-income numerator.
- Water and fuel pumping, motors and controls are retained as qualitative analysis; no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Franklin Electric's Business Activity
Franklin Electric operates through three segments:
- Water Systems: Submersible and surface pumping systems, motors, drives, controls, and water-treatment equipment
- Fueling Systems: Pumping systems, piping, monitoring, and equipment for fuel-handling applications
- Distribution: Distribution of water-systems products to professional installers
These are general-purpose industrial-manufacturing and distribution businesses — moving and managing water and fuel. This is permissible at the activity level.
Concerns to Be Aware Of
1. Minor Interest Income
The filing reports other income/expense net but does not separately disclose gross interest income. ZakatInvest does not infer a purification amount or prescribe a fixed scholar-approved percentage.
2. Acquisition Activity
Franklin Electric is a periodic acquirer that expands its distribution footprint. Acquisition activity can affect leverage and goodwill, so the financial screen should be re-verified following material transactions.
3. End-Market Cyclicality
Revenue can be sensitive to agricultural, residential-construction, and groundwater end-market cycles. These are business considerations rather than Sharia screen concerns.
Filing-Based Ratios (March 31, 2026)
Using Franklin Electric's latest Form 10-Q (USD millions):
- Debt / total assets: 11.23%
- Cash + securities / total assets: 4.23%
- Receivables + cash / total assets: 18.95%
- Gross interest income: Not separately disclosed
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Known financial ratios pass; activity and gross interest income remain incomplete.
- MSCI-style: Known financial ratios pass; this is not an index-membership claim.
- Malaysia-style: Known debt and liquidity ratios pass; this is not an official classification.
Bottom Line
Franklin Electric (FELE) has a generally permissible water-and-fuel-pumping business and passes the known filing-based ratios. Because gross interest income and a universal prohibited-revenue numerator are not disclosed, the overall result remains incomplete rather than a universal halal certification; consult the methodology you follow.
For Muslim investors seeking industrial exposure, FELE sits alongside other halal-screened names like Xylem (XYL) and Watts Water (WTS).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →