Is TDK (6762) Halal?

TSE Technology Japan $4.0T
✓ HALAL
Confidence: 95/100
TDK (6762) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 14.3% against the AAOIFI threshold of 30%, TDK comfortably passes the key financial ratio tests. The company operates in the Technology sector (Electronic Components), 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 14.3%
/ 30%
18.2%
/ 30%
13.7%
/ 30%
1.23%
/ 5%
✓ HALAL
DJIM 14.3%
/ 33%
18.2%
/ 33%
13.7%
/ 33%
1.23%
/ 5%
✓ HALAL
MSCI 17.2%
/ 33%
21.9%
/ 33%
16.5%
/ 33%
1.23%
/ 5%
✓ HALAL
S&P 14.3%
/ 33%
18.2%
/ 33%
13.7%
/ 33%
1.23%
/ 5%
✓ HALAL
FTSE 17.2%
/ 33%
21.9%
/ 33%
16.5%
/ 50%
1.23%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
23.2
Forward: 19.7
EPS
$90.96
Dividend Yield
161.0%
Payout: 35.2%
P/B Ratio
1.9
EV/EBITDA
9.1
EV: $3.8T
Revenue
$2.2T
Growth: 16.2%
Beta
0.2
Low volatility
Current Ratio
1.5

Profitability

Gross Margin 30.8%
Operating Margin 12.3%
Net Margin 7.8%
Return on Equity (ROE) 9.5%
Return on Assets (ROA) 3.7%

Cash Flow & Balance Sheet

Operating Cash Flow$445.8B
Free Cash Flow$220.5B
Total Debt$608.4B
Debt-to-Equity33.0
Current Ratio1.5
Total Assets$3.5T

Price & Trading

Last CloseJPY 2,096.50
50-Day MAJPY 2,149.00
200-Day MAJPY 2,089.30
Avg Volume12.9M
Beta0.2
52-Week Range
JPY 1,165.00
JPY 2,757.50

About TDK (6762)

CEO
Mr. Noboru Saito
Employees
108,292
Sector
Technology
Industry
Electronic Components
Country
Japan
Exchange
TSE
Market Cap
$4.0T
Currency
JPY

TDK Corporation, together with its subsidiaries, engages in the manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Others segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric material products, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries and power supplies. The Other segment offers mechatronics production equipment and camera module micro actuators for smartphones and other products. It also engages in the provision of insurance and real estate agency services; research and development of semiconductor products; and development, manufacture, and sale of rechargeable battery cells. Its products are used in information and communication technology, automotive, micromobility, industrial and energy, consumer electronics/home appliances, and medical and healthcare applications. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

Purification Calculator

As a halal stock with 1.23% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is TDK (6762) halal to invest in?

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

TDK's debt ratio is 14.3% 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 17.2%.

Does TDK require dividend purification?

Yes, TDK has an impermissible income ratio of 1.23%, which means 1.23% 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 TDK's key financial metrics?

TDK has a market capitalization of $4.0T, trailing P/E ratio of 23.2, and revenue of $2.2T. The company maintains a gross margin of 30.8% and a net margin of 7.8%. 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.