Is Hitachi (6501) Halal?

TSE Industrials Japan $21.3T
✓ HALAL
Confidence: 95/100
Hitachi (6501) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.5% against the AAOIFI threshold of 30%, Hitachi comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Conglomerates), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.5%
/ 30%
5.4%
/ 30%
16.0%
/ 30%
0.33%
/ 5%
✓ HALAL
DJIM 5.5%
/ 33%
5.4%
/ 33%
16.0%
/ 33%
0.33%
/ 5%
✓ HALAL
MSCI 9.1%
/ 33%
8.9%
/ 33%
26.3%
/ 33%
0.33%
/ 5%
✓ HALAL
S&P 5.5%
/ 33%
5.4%
/ 33%
16.0%
/ 33%
0.33%
/ 5%
✓ HALAL
FTSE 9.1%
/ 33%
8.9%
/ 33%
26.3%
/ 50%
0.33%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
28.2
Forward: 26.5
EPS
$166.95
Dividend Yield
95.0%
Payout: 26.9%
P/B Ratio
3.4
EV/EBITDA
13.3
EV: $21.1T
Revenue
$9.8T
Growth: 10.1%
Beta
0.4
Low volatility
Current Ratio
1.1

Profitability

Gross Margin 29.7%
Operating Margin 11.7%
Net Margin 8.0%

Cash Flow & Balance Sheet

Operating Cash Flow$1.2T
Free Cash Flow$780.6B
Total Debt$1.2T
Debt-to-Equity16.1
Current Ratio1.1
Total Assets$13.3T

Price & Trading

Last CloseJPY 4,779.00
50-Day MAJPY 5,065.36
200-Day MAJPY 4,616.03
Avg Volume15.2M
Beta0.4
52-Week Range
JPY 2,590.00
JPY 6,039.00

About Hitachi (6501)

CEO
Mr. Toshiaki Tokunaga
Employees
282,743
Sector
Industrials
Industry
Conglomerates
Country
Japan
Exchange
TSE
Market Cap
$21.3T
Currency
JPY

Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through Digital Systems & Services, Green Energy & Mobility, Connective Industries, and Others segments. The company offers system integration, consulting, cloud services, storage, servers, software, and ATMs; finance solutions, social infrastructure information systems, public IT solutions, industrial internet of things, digital engineering, control system, and cloud services; and IT products, such as data management and storage. It also provides power grids, clean, nuclear, renewable energy, and railway systems, such as rolling stock, signaling, supervision, telecommunications, and ticketing and payment solutions; automotive automation, including automotive assembly, glass applications, press automation, powertrain, paint and sealer applications, and tyre and wheel systems; and emobility solutions, as well as elevators and escalators, home appliances, air conditioners, industry and distribution solution, water and environment solutions, and industrial machinery. In addition, the company offers semiconductor manufacturing equipment; electron microscopes and atomic force microscopes; analytical systems, such as spectrophotometers, thermal analysis and chromatography systems, x-ray fluorescence analyzers, silicon drift detectors, potentiometric titrator, laser induced breakdown spectroscopy, and magnetic induction devices; clinical analyzers, and treatment and diagnostics solutions; and property management and other services. The company serves semiconductors, automotive , electrical, chemical and pharmaceuticals, healthcare, life-sciences, ICT, metals and mining, engineering and manufacturing, oils and petrochemicals, nonmetal materials, energy and batteries, environment, recycling, food and beverage, utilities, and other industries. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.

Purification Calculator

As a halal stock with 0.33% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is Hitachi (6501) halal to invest in?

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

Hitachi's debt ratio is 5.5% 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 9.1%.

Does Hitachi require dividend purification?

Yes, Hitachi has an impermissible income ratio of 0.33%, which means 0.33% 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 Hitachi's key financial metrics?

Hitachi has a market capitalization of $21.3T, trailing P/E ratio of 28.2, and revenue of $9.8T. The company maintains a gross margin of 29.7% and a net margin of 8.0%.

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.