Is Murata (6981) Halal?

TSE Technology Japan $6.8T
✓ HALAL
Confidence: 95/100
Murata (6981) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.9% against the AAOIFI threshold of 30%, Murata 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 0.9%
/ 30%
9.8%
/ 30%
4.3%
/ 30%
1.68%
/ 5%
✓ HALAL
DJIM 0.9%
/ 33%
9.8%
/ 33%
4.3%
/ 33%
1.68%
/ 5%
✓ HALAL
MSCI 2.0%
/ 33%
22.3%
/ 33%
9.7%
/ 33%
1.68%
/ 5%
✓ HALAL
S&P 0.9%
/ 33%
9.8%
/ 33%
4.3%
/ 33%
1.68%
/ 5%
✓ HALAL
FTSE 2.0%
/ 33%
22.3%
/ 33%
9.7%
/ 50%
1.68%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
36.2
Forward: 23.7
EPS
$103.36
Dividend Yield
160.0%
Payout: 58.1%
P/B Ratio
2.6
EV/EBITDA
14.2
EV: $6.3T
Revenue
$1.7T
Growth: 4.3%
Beta
0.8
Low volatility
Current Ratio
5.0

Profitability

Gross Margin 41.8%
Operating Margin 8.1%
Net Margin 10.7%
Return on Equity (ROE) 7.3%
Return on Assets (ROA) 5.5%

Cash Flow & Balance Sheet

Operating Cash Flow$451.9B
Free Cash Flow$259.1B
Total Debt$60.0B
Debt-to-Equity2.3
Current Ratio5.0
Total Assets$3.0T

Price & Trading

Last CloseJPY 3,723.00
50-Day MAJPY 3,538.02
200-Day MAJPY 2,913.72
Avg Volume8.8M
Beta0.8
52-Week Range
JPY 1,825.50
JPY 4,322.00

About Murata (6981)

CEO
Mr. Norio Nakajima
Employees
74,428
Sector
Technology
Industry
Electronic Components
Country
Japan
Exchange
TSE
Market Cap
$6.8T
Currency
JPY

Murata Manufacturing Co., Ltd. develops, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. It operates through three segments: Components, Devices & Modules, and Other. The company offers capacitors; inductors; high frequency device and communication modules, including surface acoustic wave filters, RF modules, multilayer resin substrates, and connectivity modules; lithium-ion secondary batteries; and sensors; antennas and related products; baluns; and batteries. It also offers Femtet, a CAE software; capacitors; cell fractionation filters; connectivity modules; connectors; couplers; digital panel meters; filters; front-end modules; inductors; ionizers; micro mechatronics; watch batteries; noise suppression products; and optical devices. In addition, the company provides phase shifters, power products, printed circuit products, resistors, RF switches, RFID products, sensors, sound components, thermistors, timing devices, and transformers. It offers its products for use in communications equipment, mobility, data center and enterprise computing, industrial, wellness, personal electronics, and environment/energy applications. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.

Purification Calculator

As a halal stock with 1.68% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is Murata (6981) halal to invest in?

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

Murata's debt ratio is 0.9% 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 2.0%.

Does Murata require dividend purification?

Yes, Murata has an impermissible income ratio of 1.68%, which means 1.68% 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 Murata's key financial metrics?

Murata has a market capitalization of $6.8T, trailing P/E ratio of 36.2, and revenue of $1.7T. The company maintains a gross margin of 41.8% and a net margin of 10.7%. Return on equity stands at 7.3%.

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.