Is Nintendo (7974) Halal?

TSE Communication Services Japan $10.6T
✓ HALAL
Confidence: 83/100
Nintendo (7974) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.0% against the AAOIFI threshold of 30%, Nintendo comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Electronic Gaming & Multimedia), 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 0.0%
/ 30%
20.4%
/ 30%
0.6%
/ 30%
4.82%
/ 5%
✓ HALAL
DJIM 0.0%
/ 33%
20.4%
/ 33%
0.6%
/ 33%
4.82%
/ 5%
✓ HALAL
MSCI 0.0%
/ 33%
60.6%
/ 33%
1.9%
/ 33%
4.82%
/ 5%
✗ NOT HALAL
S&P 0.0%
/ 33%
20.4%
/ 33%
0.6%
/ 33%
4.82%
/ 5%
✓ HALAL
FTSE 0.0%
/ 33%
60.6%
/ 33%
1.9%
/ 50%
4.82%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
29.1
Forward: 27.1
EPS
$317.00
Dividend Yield
196.0%
Payout: 40.1%
P/B Ratio
3.6
EV/EBITDA
24.2
EV: $8.4T
Revenue
$1.2T
Growth: 86.3%
Beta
0.2
Low volatility
Current Ratio
4.0

Profitability

Gross Margin 40.5%
Operating Margin 19.2%
Net Margin 18.9%
Return on Equity (ROE) 14.1%
Return on Assets (ROA) 5.8%

Cash Flow & Balance Sheet

Operating Cash Flow$12.1B
Free Cash Flow-$6.9B
Current Ratio4.0
Total Assets$3.4T

Price & Trading

Last CloseJPY 8,990.00
50-Day MAJPY 9,367.30
200-Day MAJPY 11,893.10
Avg Volume10.7M
Beta0.2
52-Week Range
JPY 8,326.00
JPY 14,795.00

About Nintendo (7974)

CEO
Mr. Shuntaro Furukawa
Employees
8,205
Sector
Communication Services
Industry
Electronic Gaming & Multimedia
Country
Japan
Exchange
TSE
Market Cap
$10.6T
Currency
JPY

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It offers home console gaming hardware, software, accessories, and other products. The company also provides various services, such as Nintendo Switch Online; and services and content. In addition, it offers develop IP, including video content and mobile apps. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

Purification Calculator

As a halal stock with 4.82% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Communication Services

Frequently Asked Questions

Is Nintendo (7974) halal to invest in?

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

Nintendo's debt ratio is 0.0% 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 0.0%.

Does Nintendo require dividend purification?

Yes, Nintendo has an impermissible income ratio of 4.82%, which means 4.82% 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 Nintendo's key financial metrics?

Nintendo has a market capitalization of $10.6T, trailing P/E ratio of 29.1, and revenue of $1.2T. The company maintains a gross margin of 40.5% and a net margin of 18.9%. Return on equity stands at 14.1%.

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.