Is EDAP TMS SA (EDAP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 9.0% / 30% | 19.3% / 30% | 13.1% / 30% | 1.24% / 5% | ✓ HALAL |
| DJIM | 9.0% / 33% | 19.3% / 33% | 13.1% / 33% | 1.24% / 5% | ✓ HALAL |
| MSCI | 16.2% / 33% | 34.7% / 33% | 23.6% / 33% | 1.24% / 5% | ✗ NOT HALAL |
| S&P | 9.0% / 33% | 19.3% / 33% | 13.1% / 33% | 1.24% / 5% | ✓ HALAL |
| FTSE | 16.2% / 33% | 34.7% / 33% | 23.6% / 50% | 1.24% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 42.5% | |
| Operating Margin | -26.2% | |
| Net Margin | -41.5% | |
| Return on Equity (ROE) | -94.5% | |
| Return on Assets (ROA) | -18.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$14M |
| Free Cash Flow | -$18M |
| Total Debt | $14M |
| Debt-to-Equity | 142.9 |
| Current Ratio | 1.5 |
| Total Assets | $86M |
Price & Trading
| Last Close | $3.77 |
| 50-Day MA | $4.19 |
| 200-Day MA | $2.68 |
| Avg Volume | 69K |
| Beta | -0.2 |
|
52-Week Range
$1.21
| |
About EDAP TMS SA (EDAP)
EDAP TMS S.A., together with its subsidiaries, develops, manufactures, promotes, and distributes minimally-invasive medical devices for urology based upon proprietary ultrasound technology in Asia, France, the United States, and internationally. The company operates through High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution segments. The HIFU segment develops, manufactures, markets, and distributes non-invasive robotic HIFU systems for urology-related and other indications. This segment also offers Focal One, a HIFU robotic system to treat patients diagnosed with prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL segment manufactures and markets lithotripter for the treatment of urinary tract stones; and provides disposables, replacement parts, and services for lithotripters. This segment also sells spare parts and disposables, such as electrodes. The Distribution segment markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. It markets and sells its products through its direct marketing and sales channels, as well as through third-party distributors and agents. The company serves academic, public, and private hospitals as well as urology clinics. EDAP TMS S.A. was incorporated in 1979 and is based in Vaulx-en-Velin, France.
Purification Calculator
As a halal stock with 1.24% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is EDAP TMS SA (EDAP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), EDAP TMS SA 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 EDAP TMS SA's debt ratio?
EDAP TMS SA's debt ratio is 9.0% 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 16.2%.
Does EDAP TMS SA require dividend purification?
Yes, EDAP TMS SA has an impermissible income ratio of 1.24%, which means 1.24% 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 EDAP TMS SA's key financial metrics?
EDAP TMS SA has a market capitalization of $139M, and revenue of $64M. The company maintains a gross margin of 42.5% and a net margin of -41.5%. Return on equity stands at -94.5%.
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.