Is IDT CORP (IDT) Halal?

NYSE Communication Services United States $1.2B
✓ HALAL
Confidence: 95/100
IDT CORP (IDT) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.1% against the AAOIFI threshold of 30%, IDT CORP comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Telecom Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from July 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.1%
/ 30%
19.7%
/ 30%
3.3%
/ 30%
0.5%
/ 5%
✓ HALAL
DJIM 0.1%
/ 33%
19.7%
/ 33%
3.3%
/ 33%
0.5%
/ 5%
✓ HALAL
MSCI 0.2%
/ 33%
40.5%
/ 33%
6.8%
/ 33%
0.5%
/ 5%
✗ NOT HALAL
S&P 0.1%
/ 33%
19.7%
/ 33%
3.3%
/ 33%
0.5%
/ 5%
✓ HALAL
FTSE 0.2%
/ 33%
40.5%
/ 33%
6.8%
/ 50%
0.5%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
14.6
Forward: 12.1
EPS
$3.25
Dividend Yield
53.0%
Payout: 7.4%
P/B Ratio
3.5
EV/EBITDA
8.1
EV: $973M
Revenue
$1.2B
Growth: 5.7%
Beta
0.7
Low volatility
Current Ratio
1.9

Profitability

Gross Margin 36.9%
Operating Margin 8.8%
Net Margin 6.5%
Return on Equity (ROE) 26.3%
Return on Assets (ROA) 11.2%

Cash Flow & Balance Sheet

Operating Cash Flow$127M
Free Cash Flow$106M
Total Debt$1M
Debt-to-Equity0.4
Current Ratio1.9
Total Assets$626M

Price & Trading

Last Close$48.01
50-Day MA$49.12
200-Day MA$54.90
Avg Volume153K
Beta0.7
52-Week Range
$45.35
$71.12

About IDT CORP (IDT)

CEO
Mr. Samuel Jonas
Employees
1,915
Sector
Communication Services
Industry
Telecom Services
Country
United States
Exchange
NYSE
Market Cap
$1.2B
Currency
USD

IDT Corporation, together with its subsidiaries, provides communications and payment services in the United States, the United Kingdom, and internationally. It operates in four segments: National Retail Solutions, Fintech, Net2phone, and Traditional Communications. The company operates point of sale, a terminal-based platform which provides independent retailers with store management software, electronic payment processing, and other ancillary merchant services; and marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services, as well as net2phone solutions comprising unified communications as a service; contact center as a service under the uContact brand; net2phone AI, which delivers customer experiences across sales, support, and administrative tasks; and net2phone Coach, a workforce intelligence and coaching platform. In addition, the company provides IDT Digital Payments, which enables businesses, entrepreneurs, and developers to offer prepaid digital offerings, including mobile airtime top-up, mobile data bundles, digital gift cards, and eSIMs through its Zendit platform; and BOSS Revolution, which offers international long-distance voice calling to immigrant communities. Further, it provides IDT Global, a wholesale provider of international voice, SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a mobile self-service portal paired with dedicated account managers backed by customer support. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.

Purification Calculator

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Frequently Asked Questions

Is IDT CORP (IDT) halal to invest in?

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

IDT CORP's debt ratio is 0.1% 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 0.2%.

Does IDT CORP require dividend purification?

Yes, IDT CORP has an impermissible income ratio of 0.50%, which means 0.50% 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 IDT CORP's key financial metrics?

IDT CORP has a market capitalization of $1.2B, trailing P/E ratio of 14.6, and revenue of $1.2B. The company maintains a gross margin of 36.9% and a net margin of 6.5%. Return on equity stands at 26.3%.

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.