Is FORMFACTOR INC (FORM) Halal?

NASDAQ Technology United States $7.6B
✓ HALAL
Confidence: 95/100
FORMFACTOR INC (FORM) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.5% against the AAOIFI threshold of 30%, FORMFACTOR INC comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductor Equipment & Materials), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.5%
/ 30%
4.2%
/ 30%
1.9%
/ 30%
1.36%
/ 5%
✓ HALAL
DJIM 0.5%
/ 33%
4.2%
/ 33%
1.9%
/ 33%
1.36%
/ 5%
✓ HALAL
MSCI 2.6%
/ 33%
22.5%
/ 33%
10.2%
/ 33%
1.36%
/ 5%
✓ HALAL
S&P 0.5%
/ 33%
4.2%
/ 33%
1.9%
/ 33%
1.36%
/ 5%
✓ HALAL
FTSE 2.6%
/ 33%
22.5%
/ 33%
10.2%
/ 50%
1.36%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
141.9
Forward: 43.9
EPS
$0.69
P/B Ratio
7.3
EV/EBITDA
73.6
EV: $7.4B
Revenue
$785M
Growth: 13.6%
Beta
1.1
Average volatility
Current Ratio
4.5

Profitability

Gross Margin 39.2%
Operating Margin 13.6%
Net Margin 6.9%
Return on Equity (ROE) 5.5%
Return on Assets (ROA) 3.3%

Cash Flow & Balance Sheet

Operating Cash Flow$115M
Free Cash Flow$12M
Total Debt$32M
Debt-to-Equity3.1
Current Ratio4.5
Total Assets$1.2B

Price & Trading

Last Close$100.35
50-Day MA$89.24
200-Day MA$53.95
Avg Volume1.4M
Beta1.1
52-Week Range
$22.58
$110.09

About FORMFACTOR INC (FORM)

CEO
Dr. Michael D. Slessor Ph.D.
Employees
2,153
Sector
Technology
Industry
Semiconductor Equipment & Materials
Country
United States
Exchange
NASDAQ
Market Cap
$7.6B
Currency
USD

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, thermal systems, cryogenic systems, and related services in the United States, South Korea, Taiwan, China, Japan, Singapore, Europe, Malaysia, and internationally. The company operates in two segments: Probe Cards and Systems segments. The company provides probe cards to test various semiconductor device types, including systems- on-chip products, such as graphics, central, digital processing units, and other custom application-specific processing units; mobile application processors, microprocessors, and microcontrollers; network devices, which include switches and network processing units; dynamic random-access memory; radio-frequency amplifiers and filters; antenna-in-package devices; analog and mixed-signal integrated circuits; image sensors; co-packaged optical integrated circuits; NAND flash memory; NOR flash memory; and quantum computer processor devices. It also offers analytical probes, which are used for device characterization, electrical simulation model development, failure analysis, and prototype design debugging; probe stations, a critical tool for the development of new generations of semiconductor and electro-optical processes and designs; and thermal subsystems, which include thermal chucks and other test systems used in probe stations and other applications for precise temperature management. In addition, the company provides cryogenic systems, which includes the manufacture of precision cryogenic instruments and semiconductor test and measurement systems; and services and support, including installation services. Further, it offers on-site probe card maintenance and service training, seminars, and telephone support services. It markets and sells its products through direct sales force, manufacturers' representatives, and distributors. The company was incorporated in 1993 and is headquartered in Livermore, California.

Purification Calculator

As a halal stock with 1.36% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is FORMFACTOR INC (FORM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), FORMFACTOR 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 FORMFACTOR INC's debt ratio?

FORMFACTOR INC's debt ratio is 0.5% 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 2.6%.

Does FORMFACTOR INC require dividend purification?

Yes, FORMFACTOR INC has an impermissible income ratio of 1.36%, which means 1.36% 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 FORMFACTOR INC's key financial metrics?

FORMFACTOR INC has a market capitalization of $7.6B, trailing P/E ratio of 141.9, and revenue of $785M. The company maintains a gross margin of 39.2% and a net margin of 6.9%. Return on equity stands at 5.5%.

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.