Is POSCO Holdings (003670) Halal?

KSC Industrials South Korea $18.6T
✓ HALAL
Confidence: 95/100
POSCO Holdings (003670) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 19.1% against the AAOIFI threshold of 30%, POSCO Holdings comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Electrical Equipment & Parts), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 19.1%
/ 30%
3.9%
/ 30%
2.4%
/ 30%
0.58%
/ 5%
✓ HALAL
DJIM 19.1%
/ 33%
3.9%
/ 33%
2.4%
/ 33%
0.58%
/ 5%
✓ HALAL
MSCI 46.1%
/ 33%
9.4%
/ 33%
5.9%
/ 33%
0.58%
/ 5%
✗ NOT HALAL
S&P 19.1%
/ 33%
3.9%
/ 33%
2.4%
/ 33%
0.58%
/ 5%
✓ HALAL
FTSE 46.1%
/ 33%
9.4%
/ 33%
5.9%
/ 50%
0.58%
/ 5%
✗ NOT HALAL

Financial Highlights

Dividend Yield
12.0%
EV/EBITDA
99.5
EV: $22.2T
Revenue
$2.9T
Growth: -22.9%
Beta
1.7
High volatility
Current Ratio
1.3

Profitability

Gross Margin 8.6%
Operating Margin -9.3%
Net Margin 1.1%
Return on Equity (ROE) 0.9%
Return on Assets (ROA) 0.1%

Cash Flow & Balance Sheet

Operating Cash Flow-$33.6B
Free Cash Flow-$1.5T
Total Debt$4.0T
Debt-to-Equity87.6
Current Ratio1.3
Total Assets$9.1T

Price & Trading

Last CloseKRW 200,000.00
50-Day MAKRW 215,832.00
200-Day MAKRW 180,177.00
Avg Volume508K
Beta1.7
52-Week Range
KRW 98,500.00
KRW 260,000.00

About POSCO Holdings (003670)

CEO
Mr. Eom Gi-chen
Sector
Industrials
Industry
Electrical Equipment & Parts
Country
South Korea
Exchange
KSC
Market Cap
$18.6T
Currency
KRW

Posco Future M Co., Ltd., together with its subsidiaries, engages in the refractory, industrial furnaces, and lime businesses in South Korea, Europe, Southeast Asia, China, the United States, and internationally. It operates through Refractories, Burned Lime/Carbon Materials, and Energy Materials segments. The company manufactures and sells various shaped refractories, such as magnesia carbon and magnesia chrome; unshaped refractories comprising castables, stamp materials, and tundish coating materials; magnesia clinkers; and functional refractories. It also provides refractory engineering services, and quicklime for ironmaking and steelmaking. In addition, the company produces carbon materials comprising coal tar, crude light oil, and oil; carbon products consisting of needle and pitch cokes, and activated carbon; and cathode active materials, precursors, and natural and artificial graphite anode active materials for lithium-ion batteries. Further, it engages in the production of light dolomite; construction and repair of refractories; maintenance of industrial furnaces; inspection of refractory materials; and investment business. The company was formerly known as Posco Chemical Co., Ltd. and changed its name to Posco Future M Co., Ltd. in March 2023. The company was founded in 1963 and is headquartered in Pohang, South Korea. Posco Future M Co., Ltd. operates as a subsidiary of POSCO Holdings Inc.

Purification Calculator

As a halal stock with 0.58% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Industrials

Frequently Asked Questions

Is POSCO Holdings (003670) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), POSCO Holdings is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is POSCO Holdings's debt ratio?

POSCO Holdings's debt ratio is 19.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 46.1%.

Does POSCO Holdings require dividend purification?

Yes, POSCO Holdings has an impermissible income ratio of 0.58%, which means 0.58% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are POSCO Holdings's key financial metrics?

POSCO Holdings has a market capitalization of $18.6T, and revenue of $2.9T. The company maintains a gross margin of 8.6% and a net margin of 1.1%. Return on equity stands at 0.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.