Is ETR (Entergy Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ETR 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 ETR.

Entergy Corporation is a major US utility company that produces and distributes electricity and natural gas. It primarily serves customers across Arkansas, Louisiana, Mississippi, and Texas, operating both nuclear and non-nuclear power generation facilities. For Muslim investors, Entergy Corporation currently holds a doubtful Shariah compliance status. Although its primary utility operations are perfectly permissible, the stock fails the critical AAOIFI financial screening due to excessive leverage. The primary concern from an Islamic finance perspective is the company's debt-to-market cap ratio, which stands at 58.8%, well above the 33% maximum limit. However, Entergy does maintain compliant levels of interest income at 2.45% of revenue and holds minimal cash and securities relative to its market cap at just 3.7%. Investors interested in the utilities sector should monitor Entergy's balance sheet for significant debt reduction. Until the company's leverage falls below the 33% threshold, Islamic investors should look for cleaner alternatives within the regulated electric industry. Entergy Corporation operates in the Utilities sector under the Regulated Electric industry and is headquartered in New Orleans, LA, US. The company is led by CEO Andrew S. Marsh and employs approximately 12,000 people.

ETR 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. ETR passed 3 of these 4 screens.

ETR 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.