Is HARMONIC INC. (HLIT) Halal?

NASDAQ Technology United States $1.1B
✓ HALAL
Confidence: 95/100
HARMONIC INC. (HLIT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 12.7% against the AAOIFI threshold of 30%, HARMONIC INC. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Communication Equipment), 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 12.7%
/ 30%
11.8%
/ 30%
8.3%
/ 30%
1.21%
/ 5%
✓ HALAL
DJIM 12.7%
/ 33%
11.8%
/ 33%
8.3%
/ 33%
1.21%
/ 5%
✓ HALAL
MSCI 18.5%
/ 33%
17.3%
/ 33%
12.2%
/ 33%
1.21%
/ 5%
✓ HALAL
S&P 12.7%
/ 33%
11.8%
/ 33%
8.3%
/ 33%
1.21%
/ 5%
✓ HALAL
FTSE 18.5%
/ 33%
17.3%
/ 33%
12.2%
/ 50%
1.21%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
938.0
Forward: 12.9
EPS
$0.01
P/B Ratio
2.7
EV/EBITDA
37.1
EV: $1.0B
Revenue
$361M
Growth: -55.8%
Beta
1.0
Average volatility
Current Ratio
2.5

Profitability

Gross Margin 48.5%
Operating Margin 3.8%
Net Margin -12.0%
Return on Equity (ROE) 0.3%
Return on Assets (ROA) 1.4%

Cash Flow & Balance Sheet

Operating Cash Flow$108M
Free Cash Flow$97M
Total Debt$133M
Debt-to-Equity34.8
Current Ratio2.5
Total Assets$718M

Price & Trading

Last Close$9.40
50-Day MA$9.97
200-Day MA$9.77
Avg Volume1.1M
Beta1.0
52-Week Range
$7.80
$12.18

About HARMONIC INC. (HLIT)

CEO
Mr. Nimrod Ben-Natan
Employees
534
Sector
Technology
Industry
Communication Equipment
Country
United States
Exchange
NASDAQ
Market Cap
$1.1B
Currency
USD

Harmonic Inc., together with its subsidiaries, provides broadband access solutions worldwide. The company provides software-based broadband access solution, including cOS software-based broadband access solutions to broadband operators, an end-to-end solution consisting of virtualized cloud-native software; hardware products include Oyster, Ripple and SeaStar DAA nodes; Reef and Wave PHY shelf products; pebble remote PHY Devices; and fin, pearl and pier OLT modules and devices; and cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers. It also provides technical support and professional services, such as maintenance and support, consulting, implementation, integration services, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training, as well as SaaS-related support and deployment. It sells its products through its direct sales force, as well as through independent resellers and systems integrators. It also serves cable and telco operators. The company was incorporated in 1988 and is headquartered in San Jose, California.

Purification Calculator

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Frequently Asked Questions

Is HARMONIC INC. (HLIT) halal to invest in?

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

HARMONIC INC.'s debt ratio is 12.7% 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 18.5%.

Does HARMONIC INC. require dividend purification?

Yes, HARMONIC INC. has an impermissible income ratio of 1.21%, which means 1.21% 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 HARMONIC INC.'s key financial metrics?

HARMONIC INC. has a market capitalization of $1.1B, trailing P/E ratio of 938.0, and revenue of $361M. The company maintains a gross margin of 48.5% and a net margin of -12.0%. Return on equity stands at 0.3%.

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.