Fervo Energy Company (FRVO) - Not Halal (Non-Compliant)
Fervo Energy Company (FRVO) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
- Sector
- Utilities
- Industry
- Utilities - Renewable
- Result
- Pass
- Reason
- The sector "Utilities" and industry "Utilities - Renewable" are not in the excluded categories.
Financial Ratios
- Debt Ratio
- Value: 12.6% | Threshold: 30% | Result: Pass
- Cash & Interest-bearing Securities Ratio
- Value: 78.5% | Threshold: 30% | Result: Fail
- Non-Permissible Income Ratio
- Value: 3037.7% | Threshold: 5% | Result: Fail
Dividend Purification
Purification percentage: 100.00%.Based on the company's financial statements, approximately 100.00% of dividend income should be donated to charity for purification. This is derived from identified interest income (3037.68% of total income). Some scholars may differ on the exact calculation method.
About Fervo Energy Company
Fervo Energy Company builds, owns, and operates geothermal power facilities in the United States. Fervo Energy Company was incorporated in 2017 and is headquartered in Houston, Texas.
Frequently Asked Questions
Is Fervo Energy Company (FRVO) stock halal to invest in?
According to AAOIFI Shariah screening standards, Fervo Energy Company (FRVO) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Fervo Energy Company have any interest income?
Fervo Energy Company's interest income ratio is 78.5% of total revenue. AAOIFI standards require this to be below 30%.
What guidelines are used to determine if FRVO stock is Shariah-compliant?
FRVO is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.

