Is Nestle Malaysia (4707) Halal?

KLS Consumer Defensive Malaysia $23.2B
✓ HALAL
Confidence: 95/100
Nestle Malaysia (4707) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.9% against the AAOIFI threshold of 30%, Nestle Malaysia comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Packaged Foods), 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 3.9%
/ 30%
0.0%
/ 30%
2.0%
/ 30%
0.0%
/ 5%
✓ HALAL
DJIM 3.9%
/ 33%
0.0%
/ 33%
2.0%
/ 33%
0.0%
/ 5%
✓ HALAL
MSCI 26.4%
/ 33%
0.2%
/ 33%
13.5%
/ 33%
0.0%
/ 5%
✓ HALAL
S&P 3.9%
/ 33%
0.0%
/ 33%
2.0%
/ 33%
0.0%
/ 5%
✓ HALAL
FTSE 26.4%
/ 33%
0.2%
/ 33%
13.5%
/ 50%
0.0%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
45.2
Forward: 35.9
EPS
$2.19
Dividend Yield
363.0%
Payout: 93.2%
P/B Ratio
40.3
EV/EBITDA
25.5
EV: $24.2B
Revenue
$6.9B
Growth: 14.2%
Beta
0.1
Low volatility
Current Ratio
0.5

Profitability

Gross Margin 30.4%
Operating Margin 10.3%
Net Margin 7.5%
Return on Equity (ROE) 91.3%
Return on Assets (ROA) 13.0%

Cash Flow & Balance Sheet

Operating Cash Flow$1.0B
Free Cash Flow$882M
Total Debt$963M
Debt-to-Equity166.9
Current Ratio0.5
Total Assets$3.6B

Price & Trading

Last CloseMYR 98.00
50-Day MAMYR 108.36
200-Day MAMYR 101.43
Avg Volume100K
Beta0.1
52-Week Range
MYR 68.80
MYR 122.20

About Nestle Malaysia (4707)

CEO
Mr. Juan Jose Aranols Campillo
Sector
Consumer Defensive
Industry
Packaged Foods
Country
Malaysia
Exchange
KLS
Market Cap
$23.2B
Currency
MYR

Nestlé (Malaysia) Berhad manufactures and sells food and beverage products in Malaysia and internationally. The company markets and sells ice-cream, powdered milk and drinks, liquid milk and juices, instant coffee and other beverages, chocolate confectionery products, instant noodles, culinary products, cereals, and related products. It also trades and deals in nutrition products. The company offers its products primarily under the Milo, Nescafé, Maggi, KitKat, Nestum, DRUMSTICK, MAT KOOL, Nestlé Gold Corn Flakes, Honey Stars, Koko Krunch, Original Fitnesse, NESTLÉ OMEGA PLUS, NESTLÉ ENERCAL COMPLETE, NESTLÉ CRUNCH, LACTOGROW PROBIO, Cerelac, LACTOGROW Aktif, NESTLÉ EVERYDAY, NESPRAY and La Cremeria brands. The company was founded in 1912 and is headquartered in Petaling Jaya, Malaysia. Nestlé (Malaysia) Berhad (KLSE:NESTLE) operates as a subsidiary of Nestlé S.A.

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Frequently Asked Questions

Is Nestle Malaysia (4707) halal to invest in?

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

Nestle Malaysia's debt ratio is 3.9% 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 26.4%.

What are Nestle Malaysia's key financial metrics?

Nestle Malaysia has a market capitalization of $23.2B, trailing P/E ratio of 45.2, and revenue of $6.9B. The company maintains a gross margin of 30.4% and a net margin of 7.5%. Return on equity stands at 91.3%.

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.