Can Muslims invest in SRE?

SRE passes some but not all shariah screens. Some scholars may permit investing with purification of non-compliant income, while others advise avoiding it. Consult a qualified scholar.

What shariah screening criteria were used for SRE?

SRE was screened using AAOIFI-based criteria: (1) Business activity — must not derive primary income from haram activities, (2) Debt-to-market-cap ratio must be ≤33%, (3) Interest income must be ≤5% of revenue, (4) Cash & interest-bearing securities must be ≤33% of market cap. SRE passed 3 of these 4 screens.

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Is SRE (Sempra) Halal or Haram?

Q: Is SRE (Sempra) stock halal?

Based on our AAOIFI-standard screening, SRE is classified as Doubtful. Sempra passes the core business activity and interest income screens, generating its revenue from permissible utility services. However, the stock is currently classified as Doubtful due to a significant breach in the debt screening, with its Debt-to-Market Cap ratio sitting at 59.8%, well above the 33% AAOIFI threshold.

New York Stock ExchangeUtilitiesDiversified Utilities$60.69B2026-04-29

SRE is Doubtful3/4 screens passed

Sempra passes the core business activity and interest income screens, generating its revenue from permissible utility services. However, the stock is currently classified as Doubtful due to a significant breach in the debt screening, with its Debt-to-Market Cap ratio sitting at 59.8%, well above the 33% AAOIFI threshold.

Price Chart (5D)

$90.88+1.97 (+2.21%)

2026-06-092026-06-02

SRE — Last 7 Days

Date	Open	High	Low	Close	Volume	Change
2026-06-09	89.60	91.06	89.10	90.87	3.3M	+1.42%
2026-06-08	91.48	91.68	88.98	89.00	3.6M	-2.71%
2026-06-05	90.46	92.12	90.46	91.42	3.0M	+1.06%
2026-06-04	89.54	90.61	89.03	90.34	2.3M	+0.89%
2026-06-03	89.79	91.25	89.20	89.53	4.5M	-0.29%
2026-06-02	87.66	89.65	87.66	89.55	4.2M	+2.16%
2026-06-01	88.22	89.37	87.10	87.13	3.0M	-1.24%

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Shariah Screening Details for SRE

Business Activity

Permissible

Sempra's core business of providing electric and natural gas utility services through SDG&E and SoCalGas is a permissible and essential economic activity under Islamic principles.

Debt / Market Cap

59.79%

Debt: $36.29BThreshold: ≤33%

Interest Income

0.75%

Interest: $103.0MThreshold: ≤5%

Cash & Securities

0.00%

Cash: $2.0MThreshold: ≤33%

About Sempra (SRE)

For Muslim investors using AAOIFI standards, Sempra currently holds a Doubtful status. While its core utility operations are perfectly halal and it easily passes the interest income and cash screens, the company carries excess leverage that violates Islamic finance guidelines.

The primary concern for halal portfolios is Sempra's heavy reliance on debt financing, a common issue in the capital-intensive utility sector. Its Debt-to-Market Cap ratio stands at a concerning 59.8%, far exceeding the strict 33% limit allowed for Shariah compliance.

Because the failure is purely financial rather than operational, investors should monitor Sempra's balance sheet over time. If the company manages to reduce its debt load or if its market capitalization increases significantly, it could potentially return to a compliant status.

CEO

Jeffrey Walker Martin

Employees

16,773

IPO Date

1998-06-29

Headquarters

San Diego, CA, US

Website

www.sempra.com

SRE Key Financial Statistics

Revenue

$13.71B

Net Income

$1.84B

EPS (Diluted)

$2.75

Stock Price

92.90

Beta

0.68

52-Week Range

72.99-101.04

Total Debt

$36.29B

Total Equity

$31.61B

Current Ratio

1.59

SRE Financial Health & Profitability

Profit Margins

Gross Margin29.1%

Operating Margin23.7%

Net Margin13.4%

Revenue Growth (YoY)

+5.8%

Prior year: $12.96B

Net Debt

$36.28B

Cash: $2.0M — Debt: $36.29B

Frequently Asked Questions About SRE

Is SRE (Sempra) stock halal to invest in?▾

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

What does Sempra do?▾

Sempra is a major energy-services holding company that operates critical utility infrastructure, including San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas). It supplies electricity and natural gas to millions of customers across Southern California, covering a massive geographic footprint. For Muslim investors using AAOIFI standards, Sempra currently holds a Doubtful status. While its core utility operations are perfectly halal and it easily passes the interest income and cash screens, the company carries excess leverage that violates Islamic finance guidelines. The primary concern for halal portfolios is Sempra's heavy reliance on debt financing, a common issue in the capital-intensive utility sector. Its Debt-to-Market Cap ratio stands at a concerning 59.8%, far exceeding the strict 33% limit allowed for Shariah compliance. Because the failure is purely financial rather than operational, investors should monitor Sempra's balance sheet over time. If the company manages to reduce its debt load or if its market capitalization increases significantly, it could potentially return to a compliant status. Sempra operates in the Utilities sector under the Diversified Utilities industry and is headquartered in San Diego, CA, US. The company is led by CEO Jeffrey Walker Martin and employs approximately 16,773 people.

What screening criteria were used for SRE?▾

SRE 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. SRE passed 3 of these 4 screens.

When was SRE last screened?▾

SRE 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.

Disclaimer

This shariah compliance assessment for SRE (Sempra) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-04-29.

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