Is Shin-Etsu (4063) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.1% / 30% | 15.5% / 30% | 4.4% / 30% | 3.39% / 5% | ✓ HALAL |
| DJIM | 0.1% / 33% | 15.5% / 33% | 4.4% / 33% | 3.39% / 5% | ✓ HALAL |
| MSCI | 0.3% / 33% | 32.1% / 33% | 9.1% / 33% | 3.39% / 5% | ✓ HALAL |
| S&P | 0.1% / 33% | 15.5% / 33% | 4.4% / 33% | 3.39% / 5% | ✓ HALAL |
| FTSE | 0.3% / 33% | 32.1% / 33% | 9.1% / 50% | 3.39% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 35.2% | |
| Operating Margin | 25.3% | |
| Net Margin | 18.9% | |
| Return on Equity (ROE) | 11.5% | |
| Return on Assets (ROA) | 7.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $881.9B |
| Free Cash Flow | $439.1B |
| Total Debt | $16.8B |
| Debt-to-Equity | 5.4 |
| Current Ratio | 6.3 |
| Total Assets | $5.6T |
Price & Trading
| Last Close | JPY 6,291.00 |
| 50-Day MA | JPY 5,788.98 |
| 200-Day MA | JPY 4,965.47 |
| Avg Volume | 9.5M |
| Beta | 1.1 |
|
52-Week Range
JPY 3,425.00
| |
About Shin-Etsu (4063)
Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. The company operates through Infrastructure Materials, Functional Materials, Electronics Materials, and Processing & Specialized Services segments. It offers polyvinyl chloride resin, caustic soda, methanol, chloromethanes, and polyvinyl alcohol; and semiconductor silicon, rare earth magnets, semiconductor encapsulating materials, LED packaging materials, photoresists, photomask blanks, and synthetic quartz products. The company also sells silicones, cellulose derivatives, silicon metal, synthetic pheromones, vinyl chloride-vinyl acetate copolymer, liquid fluoroelastomers, pellicles, and silicon anode material for lithium-ion batteries. In addition, it is involved in the processed plastics; export of technologies and plants; export and import of products; and engineering activities. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.
Purification Calculator
As a halal stock with 3.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Shin-Etsu (4063) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Shin-Etsu 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 Shin-Etsu's debt ratio?
Shin-Etsu's debt ratio is 0.1% 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 0.3%.
Does Shin-Etsu require dividend purification?
Yes, Shin-Etsu has an impermissible income ratio of 3.39%, which means 3.39% 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 Shin-Etsu's key financial metrics?
Shin-Etsu has a market capitalization of $11.4T, trailing P/E ratio of 23.8, and revenue of $2.6T. The company maintains a gross margin of 35.2% and a net margin of 18.9%. Return on equity stands at 11.5%.
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.