Is Bridgestone (5108) Halal?

TSE Consumer Cyclical Japan $4.2T
✓ HALAL
Confidence: 95/100
Bridgestone (5108) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 16.4% against the AAOIFI threshold of 30%, Bridgestone comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Auto Parts), 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 16.4%
/ 30%
16.2%
/ 30%
23.4%
/ 30%
0.62%
/ 5%
✓ HALAL
DJIM 16.4%
/ 33%
16.2%
/ 33%
23.4%
/ 33%
0.62%
/ 5%
✓ HALAL
MSCI 12.7%
/ 33%
12.5%
/ 33%
18.1%
/ 33%
0.62%
/ 5%
✓ HALAL
S&P 16.4%
/ 33%
16.2%
/ 33%
23.4%
/ 33%
0.62%
/ 5%
✓ HALAL
FTSE 12.7%
/ 33%
12.5%
/ 33%
18.1%
/ 50%
0.62%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
27.9
Forward: 6.0
EPS
$119.07
Dividend Yield
391.0%
Payout: 96.6%
P/B Ratio
1.2
EV/EBITDA
5.3
EV: $4.4T
Beta
0.4
Low volatility
Current Ratio
2.6

Profitability

Gross Margin 38.5%
Operating Margin 15.7%
Net Margin 7.4%
Return on Equity (ROE) 8.6%
Return on Assets (ROA) 5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$548.8B
Free Cash Flow$211.6B
Total Debt$727.7B
Debt-to-Equity22.2
Current Ratio2.6
Total Assets$5.7T

Price & Trading

Last CloseJPY 3,323.00
50-Day MAJPY 3,523.66
200-Day MAJPY 3,402.88
Avg Volume5.0M
Beta0.4
52-Week Range
JPY 2,556.50
JPY 3,859.00

About Bridgestone (5108)

CEO
Yasuhiro Morita
Employees
115,716
Sector
Consumer Cyclical
Industry
Auto Parts
Country
Japan
Exchange
TSE
Market Cap
$4.2T
Currency
JPY

Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products in Japan, China, India, the Asia Pacific, the United States, the Americas, Europe, the Middle East, and Africa. The company offers passenger car, motorcycle, trucks, buses, construction and mining vehicles, agricultural machinery, and aircraft tires; automotive components; automotive maintenance and repair services; synthetic rubber; retreading materials; and raw materials for tires. It also provides hoses, rubber crawler MT pads, resin piping, seismic isolation rubber, rubber bearings for bridges, and block-type rubber-coated chain bridge collapse prevention device. In addition, the company offers golf equipment comprising golf balls and golf clubs; bicycles and power-assisted bicycles; and finance services, including lending, factoring and entrusted processing of accounting and payroll calculation. Further, it provides retail and service, fleet, aviation, industrial and construction machinery, agriculture mobility, mining, and building solutions. Additionally, it engages in shipping and warehousing activities. Bridgestone Corporation was incorporated in 1931 and is headquartered in Chuo, Japan.

Purification Calculator

As a halal stock with 0.62% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Consumer Cyclical

Frequently Asked Questions

Is Bridgestone (5108) halal to invest in?

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

Bridgestone's debt ratio is 16.4% 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 12.7%.

Does Bridgestone require dividend purification?

Yes, Bridgestone has an impermissible income ratio of 0.62%, which means 0.62% 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 Bridgestone's key financial metrics?

Bridgestone has a market capitalization of $4.2T, trailing P/E ratio of 27.9. The company maintains a gross margin of 38.5% and a net margin of 7.4%. Return on equity stands at 8.6%.

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.