Is Eastern Cement (3080) Halal?

SAU Basic Materials Saudi Arabia $2.1B
✓ HALAL
Confidence: 95/100
Eastern Cement (3080) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, Eastern Cement comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Building Materials), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
18.0%
/ 30%
20.4%
/ 30%
0.26%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
18.0%
/ 33%
20.4%
/ 33%
0.26%
/ 5%
✓ HALAL
MSCI 0.2%
/ 33%
12.9%
/ 33%
14.6%
/ 33%
0.26%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
18.0%
/ 33%
20.4%
/ 33%
0.26%
/ 5%
✓ HALAL
FTSE 0.2%
/ 33%
12.9%
/ 33%
14.6%
/ 50%
0.26%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
9.2
Forward: 9.9
EPS
$2.60
Dividend Yield
657.0%
Payout: 61.5%
P/B Ratio
0.9
EV/EBITDA
5.3
EV: $2.0B
Revenue
$1.2B
Growth: 3.3%
Beta
0.1
Low volatility
Current Ratio
2.3

Profitability

Gross Margin 28.3%
Operating Margin 12.8%
Net Margin 17.8%
Return on Equity (ROE) 9.5%
Return on Assets (ROA) 5.9%

Cash Flow & Balance Sheet

Operating Cash Flow$368M
Free Cash Flow$123M
Total Debt$6M
Debt-to-Equity7.0
Current Ratio2.3
Total Assets$2.8B

Price & Trading

Last CloseSAR 24.34
50-Day MASAR 23.98
200-Day MASAR 25.76
Avg Volume101K
Beta0.1
52-Week Range
SAR 21.95
SAR 36.40

About Eastern Cement (3080)

CEO
Engineer Fahad Rashed Mohammed Al-Otaibi
Sector
Basic Materials
Industry
Building Materials
Country
Saudi Arabia
Exchange
SAU
Market Cap
$2.1B
Currency
SAR

Eastern Province Cement Company produces and sells clinker and cement in the Kingdom of Saudi Arabia and internationally. The company operates in two segments, Cement and Precast. The Cement segment engages in the manufacture and wholesale of ordinary, salt-resistant, and clinker cement. The Precast segment provides partitions, frames, and prefabricated buildings from prefabricated concrete. It is also involved in the operation of quarries, mining of gypsum and anhydrite, and wholesale of cement and gypsum. Eastern Province Cement Company was founded in 1982 and is headquartered in Dammam, the Kingdom of Saudi Arabia.

Purification Calculator

As a halal stock with 0.26% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Eastern Cement (3080) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Eastern Cement 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 Eastern Cement's debt ratio?

Eastern Cement's debt ratio is 0.3% 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 0.2%.

Does Eastern Cement require dividend purification?

Yes, Eastern Cement has an impermissible income ratio of 0.26%, which means 0.26% 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 Eastern Cement's key financial metrics?

Eastern Cement has a market capitalization of $2.1B, trailing P/E ratio of 9.2, and revenue of $1.2B. The company maintains a gross margin of 28.3% and a net margin of 17.8%. Return on equity stands at 9.5%.

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.