Is Thales (HO) Halal?

PAR Industrials France $48.9B
✓ HALAL
Confidence: 95/100
Thales (HO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 15.8% against the AAOIFI threshold of 30%, Thales comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), 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 15.8%
/ 30%
9.6%
/ 30%
8.9%
/ 30%
0.6%
/ 5%
✓ HALAL
DJIM 15.8%
/ 33%
9.6%
/ 33%
8.9%
/ 33%
0.6%
/ 5%
✓ HALAL
MSCI 19.6%
/ 33%
11.9%
/ 33%
11.0%
/ 33%
0.6%
/ 5%
✓ HALAL
S&P 15.8%
/ 33%
9.6%
/ 33%
8.9%
/ 33%
0.6%
/ 5%
✓ HALAL
FTSE 19.6%
/ 33%
11.9%
/ 33%
11.0%
/ 50%
0.6%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
29.2
Forward: 19.5
EPS
$8.14
Dividend Yield
164.0%
Payout: 46.7%
P/B Ratio
6.1
EV/EBITDA
16.8
EV: $50.5B
Revenue
$22.1B
Growth: 7.1%
Beta
0.1
Low volatility
Current Ratio
0.8

Profitability

Gross Margin 26.4%
Operating Margin 10.5%
Net Margin 7.6%
Return on Equity (ROE) 21.1%
Return on Assets (ROA) 3.4%

Cash Flow & Balance Sheet

Operating Cash Flow$3.3B
Free Cash Flow$2.6B
Total Debt$6.1B
Debt-to-Equity76.7
Current Ratio0.8
Total Assets$39.2B

Price & Trading

Last CloseEUR 241.60
50-Day MAEUR 251.87
200-Day MAEUR 244.31
Avg Volume314K
Beta0.1
52-Week Range
EUR 207.00
EUR 279.30

About Thales (HO)

CEO
Mr. Patrice Caine
Employees
84,958
Sector
Industrials
Industry
Aerospace & Defense
Country
France
Exchange
PAR
Market Cap
$48.9B
Currency
EUR

Thales S.A. provides various solutions in the defence and security, aerospace and space, and digital identity and security markets worldwide. The company offers advance air defence systems, combat systems, defence onboard electronics c4isr solutions, command and control solutions, mission and surveillance systems, airborne optronics, and airspace protection solutions; collaborative combat, intelligence, connectivity and cloud, country and force protection, military vehicle, collaborative artillery, and augmented soldier solutions; robotics and drones; above-water combat, unmanned maritime, and underwater warfare systems; naval support and services; and joint systems. It also provides mission-critical and radio communications; cyber defence and electronic warfare solutions; protection systems; unmanned aerial vehicle systems; digital transformation services; and Geonav IoT for real-time indoor/outdoor precise navigations. In addition, it offers digital identity and security solutions comprising banking and payment, data protection, digital identity, identity and access management, biometric, mobile, software monetization, secure IoT solutions, and IoT connecting and security solutions. Further, it provides air traffic management solutions; flight decks and avionics equipment and functions; in-flight entertainment, connectivity, and services; drone and navigation solutions; support and services for civil aviation; connectivity solutions; antennas; and solutions for internal and external aircraft lighting. It offers lasers; microwave and imaging sub-systems; microelectronic solutions; mobile satellite, environmental testing and evaluation laboratory, and training and simulation services; cryogenic technology and coolers; silicon security solutions; and designs, operates, and delivers satellite-based technologies. The company was formerly known as Thomson-CSF and changed its name to Thales S.A. in 2000. Thales S.A. was founded in 1893 and is based in Meudon, France.

Purification Calculator

As a halal stock with 0.60% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is Thales (HO) halal to invest in?

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

Thales's debt ratio is 15.8% 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 19.6%.

Does Thales require dividend purification?

Yes, Thales has an impermissible income ratio of 0.60%, which means 0.60% 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 Thales's key financial metrics?

Thales has a market capitalization of $48.9B, trailing P/E ratio of 29.2, and revenue of $22.1B. The company maintains a gross margin of 26.4% and a net margin of 7.6%. Return on equity stands at 21.1%.

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.