Is AXT INC (AXTI) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 2.8% / 30% | 1.3% / 30% | 1.4% / 30% | 3.27% / 5% | ✓ HALAL |
| DJIM | 2.8% / 33% | 1.3% / 33% | 1.4% / 33% | 3.27% / 5% | ✓ HALAL |
| MSCI | 14.7% / 33% | 6.7% / 33% | 7.6% / 33% | 3.27% / 5% | ✓ HALAL |
| S&P | 2.8% / 33% | 1.3% / 33% | 1.4% / 33% | 3.27% / 5% | ✓ HALAL |
| FTSE | 14.7% / 33% | 6.7% / 33% | 7.6% / 50% | 3.27% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 12.7% | |
| Operating Margin | -16.6% | |
| Net Margin | -24.1% | |
| Return on Equity (ROE) | -7.9% | |
| Return on Assets (ROA) | -3.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$12M |
| Free Cash Flow | -$18M |
| Total Debt | $50M |
| Debt-to-Equity | 20.9 |
| Current Ratio | 2.7 |
| Total Assets | $339M |
Price & Trading
| Last Close | $58.51 |
| 50-Day MA | $34.40 |
| 200-Day MA | $13.70 |
| Avg Volume | 8.4M |
| Beta | 1.8 |
|
52-Week Range
$1.13
| |
About AXT INC (AXTI)
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company provides indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also offers semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, laser machining, cutting and drilling, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers. In addition, the company provides germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it offers 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
Purification Calculator
As a halal stock with 3.27% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is AXT INC (AXTI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), AXT INC 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 AXT INC's debt ratio?
AXT INC's debt ratio is 2.8% 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 14.7%.
Does AXT INC require dividend purification?
Yes, AXT INC has an impermissible income ratio of 3.27%, which means 3.27% 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 AXT INC's key financial metrics?
AXT INC has a market capitalization of $3.4B, and revenue of $99M. The company maintains a gross margin of 12.7% and a net margin of -24.1%. Return on equity stands at -7.9%.
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.