Is Applied Materials (AMAT) Halal?
Shariah Screening — 5 Standards
Based on financial data from October 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 2.7% / 30% | 3.3% / 30% | 2.1% / 30% | 4.41% / 5% | ✓ HALAL |
| DJIM | 2.7% / 33% | 3.3% / 33% | 2.1% / 33% | 4.41% / 5% | ✓ HALAL |
| MSCI | 19.4% / 33% | 23.6% / 33% | 14.7% / 33% | 4.41% / 5% | ✓ HALAL |
| S&P | 2.7% / 33% | 3.3% / 33% | 2.1% / 33% | 4.41% / 5% | ✓ HALAL |
| FTSE | 19.4% / 33% | 23.6% / 33% | 14.7% / 50% | 4.41% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 48.7% | |
| Operating Margin | 29.9% | |
| Net Margin | 27.8% | |
| Return on Equity (ROE) | 38.9% | |
| Return on Assets (ROA) | 14.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $8.0B |
| Free Cash Flow | $5.7B |
| Total Debt | $7.0B |
| Debt-to-Equity | 33.1 |
| Current Ratio | 2.7 |
| Total Assets | $36.3B |
Price & Trading
| Last Close | $338.55 |
| 50-Day MA | $344.32 |
| 200-Day MA | $245.53 |
| Avg Volume | 7.5M |
| Beta | 1.6 |
|
52-Week Range
$123.74
| |
About Applied Materials (AMAT)
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.
Purification Calculator
As a halal stock with 4.41% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Applied Materials (AMAT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Applied Materials 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 Applied Materials's debt ratio?
Applied Materials's debt ratio is 2.7% 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 19.4%.
Does Applied Materials require dividend purification?
Yes, Applied Materials has an impermissible income ratio of 4.41%, which means 4.41% 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 Applied Materials's key financial metrics?
Applied Materials has a market capitalization of $267.6B, trailing P/E ratio of 34.6, and revenue of $28.4B. The company maintains a gross margin of 48.7% and a net margin of 27.8%. Return on equity stands at 38.9%.
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.