Is Legrand (LR) Halal?

PAR Industrials France $33.7B
✓ HALAL
Confidence: 95/100
Legrand (LR) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 18.3% against the AAOIFI threshold of 30%, Legrand comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Electrical Equipment & Parts), 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 18.3%
/ 30%
6.6%
/ 30%
3.4%
/ 30%
0.8%
/ 5%
✓ HALAL
DJIM 18.3%
/ 33%
6.6%
/ 33%
3.4%
/ 33%
0.8%
/ 5%
✓ HALAL
MSCI 37.5%
/ 33%
13.5%
/ 33%
7.0%
/ 33%
0.8%
/ 5%
✗ NOT HALAL
S&P 18.3%
/ 33%
6.6%
/ 33%
3.4%
/ 33%
0.8%
/ 5%
✓ HALAL
FTSE 37.5%
/ 33%
13.5%
/ 33%
7.0%
/ 50%
0.8%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
27.4
Forward: 20.4
EPS
$4.70
Dividend Yield
185.0%
Payout: 46.8%
P/B Ratio
4.6
EV/EBITDA
18.3
EV: $38.0B
Revenue
$9.5B
Growth: 3.7%
Beta
0.9
Average volatility
Current Ratio
1.9

Profitability

Gross Margin 50.8%
Operating Margin 19.0%
Net Margin 13.1%
Return on Equity (ROE) 16.8%
Return on Assets (ROA) 6.7%

Cash Flow & Balance Sheet

Operating Cash Flow$1.6B
Free Cash Flow$1.3B
Total Debt$6.6B
Debt-to-Equity90.0
Current Ratio1.9
Total Assets$17.6B

Price & Trading

Last CloseEUR 132.60
50-Day MAEUR 139.66
200-Day MAEUR 132.83
Avg Volume587K
Beta0.9
52-Week Range
EUR 82.94
EUR 157.35

About Legrand (LR)

CEO
Mr. Benoît Coquart
Employees
39,611
Sector
Industrials
Industry
Electrical Equipment & Parts
Country
France
Exchange
PAR
Market Cap
$33.7B
Currency
EUR

Legrand SA, together with its subsidiaries, manufactures, distributes, and sells electrical and digital building infrastructures in Europe, North and Central America, and internationally. The company offers energy distribution, protection, and management solutions, such as electric vehicle charging, residential and small commercial panels, switchboards and power cabinets, and UPS devices; and wiring devices, connected home and building control solutions, and guestroom solutions, as well as back, junction, DCL, and floor boxes. It also provides security, communication, and network solutions, including access security, digital home networks, emergency lighting, fire alarms, IT networks, intercom and door entry, and nurse call systems; conduits and cable management solutions comprising trunking, ducts, tubes, floor boxes, columns and feeders, and workstation solutions; industrial products, which comprises enclosures, connections, transformers and power supply, marking accessories and cable ties, motor control and protection, fuse protection, and industrial plugs and sockets, as well as control, button, and signaling products; installation accessories, including wiring accessories, extension cords, multi-outlet units, cable ties and fasteners, and connection boxes and terminals; and lighting products and accessories. The company's products are used in hotels, offices, data centers, shopping centers, health care, industrial, and residential buildings. It also exports its products to approximately 170 countries. Legrand SA was founded in 1865 and is headquartered in Limoges, France.

Purification Calculator

As a halal stock with 0.80% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Legrand (LR) halal to invest in?

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

Legrand's debt ratio is 18.3% 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 37.5%.

Does Legrand require dividend purification?

Yes, Legrand has an impermissible income ratio of 0.80%, which means 0.80% 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 Legrand's key financial metrics?

Legrand has a market capitalization of $33.7B, trailing P/E ratio of 27.4, and revenue of $9.5B. The company maintains a gross margin of 50.8% and a net margin of 13.1%. Return on equity stands at 16.8%.

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.