Is ESTEE LAUDER COMPANIES INC (EL) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 28.2% / 30% | 8.7% / 30% | 4.6% / 30% | 0.8% / 5% | ✓ HALAL |
| DJIM | 28.2% / 33% | 8.7% / 33% | 4.6% / 33% | 0.8% / 5% | ✓ HALAL |
| MSCI | 47.6% / 33% | 14.7% / 33% | 7.7% / 33% | 0.8% / 5% | ✗ NOT HALAL |
| S&P | 28.2% / 33% | 8.7% / 33% | 4.6% / 33% | 0.8% / 5% | ✓ HALAL |
| FTSE | 47.6% / 33% | 14.7% / 33% | 7.7% / 50% | 0.8% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 74.3% | |
| Operating Margin | 14.3% | |
| Net Margin | -1.2% | |
| Return on Equity (ROE) | -4.3% | |
| Return on Assets (ROA) | 4.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.3B |
| Free Cash Flow | $670M |
| Total Debt | $9.5B |
| Debt-to-Equity | 232.9 |
| Current Ratio | 1.4 |
| Total Assets | $19.9B |
Price & Trading
| Last Close | $69.75 |
| 50-Day MA | $101.90 |
| 200-Day MA | $94.91 |
| Avg Volume | 4.0M |
| Beta | 1.1 |
|
52-Week Range
$48.37
| |
About ESTEE LAUDER COMPANIES INC (EL)
The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. The company offers skin care products, including moisturizers, serums, cleansers, toners, eye care, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as foundations, powders, concealers and setting sprays, lipsticks, lip liners and lip glosses, mascaras, and eyeshadows and eyeliners, as well as compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising parfum, eau de parfum, eau de toilette, eau de cologne, and body spray, as well as lotions, creams, powders, candles and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair colour products, as well as sells ancillary products and services. The company offers its products under the La Mer, Jo Malone London, TOM FORD, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, KILIAN PARIS, BALMAIN Beauty, Estée Lauder, Clinique, M·A·C, The Ordinary, Aveda, Bobbi Brown Cosmetics, Too Faced, Dr.Jart+, Bumble and bumble, Editions de Parfums Frédéric Malle, Smashbox, Darphin Paris, Lab Series, NIOD, Aramis, and GLAMGLOW brands. It sells its products through department stores, duty-free retailers, specialty multi retailers, online pure players, upscale perfumeries and pharmacies, and top-tier salons and spas, as well as direct-to-consumer businesses across freestanding stores, and brand websites and third-party online platforms. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.
Purification Calculator
As a halal stock with 0.80% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ESTEE LAUDER COMPANIES INC (EL) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ESTEE LAUDER COMPANIES 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 ESTEE LAUDER COMPANIES INC's debt ratio?
ESTEE LAUDER COMPANIES INC's debt ratio is 28.2% 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 47.6%.
Does ESTEE LAUDER COMPANIES INC require dividend purification?
Yes, ESTEE LAUDER COMPANIES INC has an impermissible income ratio of 0.80%, which means 0.80% 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 ESTEE LAUDER COMPANIES INC's key financial metrics?
ESTEE LAUDER COMPANIES INC has a market capitalization of $24.3B, and revenue of $14.3B. The company maintains a gross margin of 74.3% and a net margin of -1.2%. Return on equity stands at -4.3%.
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.