Is KLA Corporation (KLAC) Halal?

NYSE Technology United States $189.6B
✓ HALAL
Confidence: 95/100
KLA Corporation (KLAC) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 3.4% against the AAOIFI threshold of 30%, KLA Corporation 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 June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.4%
/ 30%
2.5%
/ 30%
1.4%
/ 30%
1.48%
/ 5%
✓ HALAL
DJIM 3.4%
/ 33%
2.5%
/ 33%
1.4%
/ 33%
1.48%
/ 5%
✓ HALAL
MSCI 37.9%
/ 33%
28.0%
/ 33%
15.1%
/ 33%
1.48%
/ 5%
✗ NOT HALAL
S&P 3.4%
/ 33%
2.5%
/ 33%
1.4%
/ 33%
1.48%
/ 5%
✓ HALAL
FTSE 37.9%
/ 33%
28.0%
/ 33%
15.1%
/ 50%
1.48%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
42.0
Forward: 30.3
EPS
$34.35
Dividend Yield
53.0%
Payout: 21.5%
P/B Ratio
34.6
EV/EBITDA
33.1
EV: $190.1B
Revenue
$12.2B
Growth: 7.2%
Beta
1.4
High volatility
Current Ratio
2.8

Profitability

Gross Margin 61.6%
Operating Margin 41.3%
Net Margin 35.8%
Return on Equity (ROE) 100.7%
Return on Assets (ROA) 21.1%

Cash Flow & Balance Sheet

Operating Cash Flow$4.1B
Free Cash Flow$3.7B
Total Debt$6.1B
Debt-to-Equity111.8
Current Ratio2.8
Total Assets$16.1B

Price & Trading

Last Close$1,451.13
50-Day MA$1,479.58
200-Day MA$1,163.06
Avg Volume1.1M
Beta1.4
52-Week Range
$551.33
$1,693.35

About KLA Corporation (KLAC)

CEO
Mr. Richard P. Wallace
Employees
15,000
Sector
Technology
Industry
Semiconductor Equipment & Materials
Country
United States
Exchange
NYSE
Market Cap
$189.6B
Currency
USD

KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. It offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; wafer inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. The company also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, it offers direct imaging, inspection, optical shaping, inkjet and additive printing, and computer-aided manufacturing and engineering solutions for the PCB market and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

Purification Calculator

As a halal stock with 1.48% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is KLA Corporation (KLAC) halal to invest in?

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

KLA Corporation's debt ratio is 3.4% 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 37.9%.

Does KLA Corporation require dividend purification?

Yes, KLA Corporation has an impermissible income ratio of 1.48%, which means 1.48% 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 KLA Corporation's key financial metrics?

KLA Corporation has a market capitalization of $189.6B, trailing P/E ratio of 42.0, and revenue of $12.2B. The company maintains a gross margin of 61.6% and a net margin of 35.8%. Return on equity stands at 100.7%.

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.