Is ES (Eversource Energy) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ES is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in ES.

Eversource Energy operates as a major public utility holding company serving the New England region. It provides essential infrastructure and services, including electric transmission, natural gas distribution, and regulated water services to hundreds of thousands of residential, commercial, and municipal customers. For Muslim investors, Eversource Energy is currently classified as Doubtful. While its core utility operations are completely halal and provide essential community services, the stock fails the AAOIFI financial screening criteria due to its highly leveraged capital structure, meaning it cannot be considered shariah-compliant at this time. The primary concern from an Islamic finance perspective is the company's debt-to-market capitalization ratio, which sits at an elevated 118.3%, well above the 33% maximum limit allowed by AAOIFI. On a positive note, its interest-bearing cash reserves and interest income are negligible, passing those respective screens with ease. Because utility companies are inherently capital-intensive and often carry high debt loads to fund infrastructure projects, this high leverage is common in the sector. Muslim investors should monitor Eversource Energy's balance sheet, as a significant reduction in debt or a substantial increase in market capitalization would be required to bring the stock into compliance. Eversource Energy operates in the Utilities sector under the Regulated Electric industry and is headquartered in Springfield, MA, US. The company is led by CEO Joseph R. Nolan Jr. and employs approximately 10,000 people.

ES was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ES passed 3 of these 4 screens.

ES was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.