Is Kontoor Brands, Inc. (KTB) Halal?

NYSE Consumer Cyclical United States $3.7B
✓ HALAL
Confidence: 95/100
Kontoor Brands, Inc. (KTB) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 18.7% against the AAOIFI threshold of 30%, Kontoor Brands, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Apparel Manufacturing), 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 18.7%
/ 30%
7.9%
/ 30%
5.7%
/ 30%
0.43%
/ 5%
✓ HALAL
DJIM 18.7%
/ 33%
7.9%
/ 33%
5.7%
/ 33%
0.43%
/ 5%
✓ HALAL
MSCI 47.9%
/ 33%
20.2%
/ 33%
14.8%
/ 33%
0.43%
/ 5%
✗ NOT HALAL
S&P 18.7%
/ 33%
7.9%
/ 33%
5.7%
/ 33%
0.43%
/ 5%
✓ HALAL
FTSE 47.9%
/ 33%
20.2%
/ 33%
14.8%
/ 50%
0.43%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
16.4
Forward: 9.5
EPS
$4.05
Dividend Yield
319.0%
Payout: 51.6%
P/B Ratio
6.5
EV/EBITDA
9.3
EV: $4.9B
Revenue
$3.2B
Growth: 45.6%
Beta
1.1
Average volatility
Current Ratio
1.8

Profitability

Gross Margin 46.6%
Operating Margin 17.0%
Net Margin 7.2%
Return on Equity (ROE) 47.1%
Return on Assets (ROA) 13.9%

Cash Flow & Balance Sheet

Operating Cash Flow$456M
Free Cash Flow$431M
Total Debt$1.3B
Debt-to-Equity229.1
Current Ratio1.8
Total Assets$2.6B

Price & Trading

Last Close$67.32
50-Day MA$66.28
200-Day MA$70.15
Avg Volume850K
Beta1.1
52-Week Range
$50.00
$87.00

About Kontoor Brands, Inc. (KTB)

CEO
Mr. Scott H. Baxter
Employees
10,600
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Country
United States
Exchange
NYSE
Market Cap
$3.7B
Currency
USD

Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, primarily under the Wrangler, Lee, and Helly Hansen brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Musto, Chic, and Rock & Republic brand names. The company sells its products through mass merchants, outdoor and sporting goods stores, specialty stores, department stores, company-operated stores, business-to-business through workwear and uniform businesses, and online, including digital marketplaces, as well as through wholesale and direct-to-consumer channels. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

Purification Calculator

As a halal stock with 0.43% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is Kontoor Brands, Inc. (KTB) halal to invest in?

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

Kontoor Brands, Inc.'s debt ratio is 18.7% 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 47.9%.

Does Kontoor Brands, Inc. require dividend purification?

Yes, Kontoor Brands, Inc. has an impermissible income ratio of 0.43%, which means 0.43% 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 Kontoor Brands, Inc.'s key financial metrics?

Kontoor Brands, Inc. has a market capitalization of $3.7B, trailing P/E ratio of 16.4, and revenue of $3.2B. The company maintains a gross margin of 46.6% and a net margin of 7.2%. Return on equity stands at 47.1%.

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.