Is ELTEK LTD (ELTK) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 9.7% / 30% | 27.9% / 30% | 19.5% / 30% | 1.57% / 5% | ✓ HALAL |
| DJIM | 9.7% / 33% | 27.9% / 33% | 19.5% / 33% | 1.57% / 5% | ✓ HALAL |
| MSCI | 10.0% / 33% | 28.7% / 33% | 20.0% / 33% | 1.57% / 5% | ✓ HALAL |
| S&P | 9.7% / 33% | 27.9% / 33% | 19.5% / 33% | 1.57% / 5% | ✓ HALAL |
| FTSE | 10.0% / 33% | 28.7% / 33% | 20.0% / 50% | 1.57% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.4% | |
| Operating Margin | 0.9% | |
| Net Margin | 1.6% | |
| Return on Equity (ROE) | 1.9% | |
| Return on Assets (ROA) | 2.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $5M |
| Free Cash Flow | -$5M |
| Total Debt | $6M |
| Debt-to-Equity | 13.7 |
| Current Ratio | 2.8 |
| Total Assets | $60M |
Price & Trading
| Last Close | $8.24 |
| 50-Day MA | $8.89 |
| 200-Day MA | $9.84 |
| Avg Volume | 19K |
| Beta | 0.7 |
|
52-Week Range
$7.65
| |
About ELTEK LTD (ELTK)
Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, North America, India, the Netherlands, rest of Europe, and internationally. It offers a range of custom designed PCBs, including complex rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high-density circuit boards; and flexible and flex rigid PCBs, and multi-layered boards, as well as act as a supplier for the importation of PCBs. In addition, it provides training and consulting services. The company primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. It markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. is a subsidiary of Nistec Golan Ltd.
Purification Calculator
As a halal stock with 1.57% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ELTEK LTD (ELTK) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ELTEK LTD 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 ELTEK LTD's debt ratio?
ELTEK LTD's debt ratio is 9.7% 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 10.0%.
Does ELTEK LTD require dividend purification?
Yes, ELTEK LTD has an impermissible income ratio of 1.57%, which means 1.57% 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 ELTEK LTD's key financial metrics?
ELTEK LTD has a market capitalization of $56M, trailing P/E ratio of 69.5, and revenue of $47M. The company maintains a gross margin of 15.4% and a net margin of 1.6%. Return on equity stands at 1.9%.
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.