Is Merck KGaA (MRK) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 21.4% / 30% | 5.7% / 30% | 8.2% / 30% | 0.78% / 5% | ✓ HALAL |
| DJIM | 21.4% / 33% | 5.7% / 33% | 8.2% / 33% | 0.78% / 5% | ✓ HALAL |
| MSCI | 19.9% / 33% | 5.2% / 33% | 7.7% / 33% | 0.78% / 5% | ✓ HALAL |
| S&P | 21.4% / 33% | 5.7% / 33% | 8.2% / 33% | 0.78% / 5% | ✓ HALAL |
| FTSE | 19.9% / 33% | 5.2% / 33% | 7.7% / 50% | 0.78% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 58.9% | |
| Operating Margin | 17.6% | |
| Net Margin | 12.4% | |
| Return on Equity (ROE) | 8.9% | |
| Return on Assets (ROA) | 4.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $4.6B |
| Free Cash Flow | $2.4B |
| Total Debt | $10.3B |
| Debt-to-Equity | 41.8 |
| Current Ratio | 1.5 |
| Total Assets | $51.6B |
Price & Trading
| Last Close | EUR 106.90 |
| 50-Day MA | EUR 119.76 |
| 200-Day MA | EUR 115.43 |
| Avg Volume | 338K |
| Beta | 0.7 |
|
52-Week Range
EUR 100.70
| |
About Merck KGaA (MRK)
Merck KGaA operates as a science and technology company in Europe, North America, Latin America, Middle East and Africa, and the Asia Pacific. The Life Science segment offers products, solutions, and services to academic, research and diagnostic labs, biotech, and pharmaceutical companies, as well as the industrial sector; reagents, consumables, devices, instruments, software, and services for research, production, and testing to lab water instruments, microbiology and biomonitoring products, test assays, analytical reagents, and flow cytometry kits and instruments. This segment also provides traditional and novel therapies, such as ration devices, chromatography resins, single-use systems, process chemicals, and excipients for bioprocessing; contract development, manufacturing and testing services, which supports customers from preclinical phases to commercialization. The Healthcare segment discovers, develops, manufactures, and markets prescription drugs and biopharmaceuticals to the therapeutic areas of oncology, rare diseases, neurology and immunology, fertility, cardiovascular, and metabolic and endocrinological disorders. The Electronics segment offers advanced dielectric and metallic materials; photoresist, anti-reflective coating, and material lithography products; clean and selective etch chemistries; materials for chemical-mechanical planarization; high-purity gases for semiconductor manufacturing; and develops and installs delivery equipment for handling of specialty chemicals and gases for semiconductor manufacturing; develops modulating, creating, engineering, and guiding light; and material solutions in liquid crystals, OLED materials, and photoresists. It has in-licensing agreement with Abbisko Therapeutics Co. Ltd., China on drug candidates for the treatment of tenosynovial giant cell tumor. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA is a subsidiary of E. Merck KG.
Purification Calculator
As a halal stock with 0.78% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Merck KGaA (MRK) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Merck KGaA 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 Merck KGaA's debt ratio?
Merck KGaA's debt ratio is 21.4% 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 19.9%.
Does Merck KGaA require dividend purification?
Yes, Merck KGaA has an impermissible income ratio of 0.78%, which means 0.78% 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 Merck KGaA's key financial metrics?
Merck KGaA has a market capitalization of $45.7B, trailing P/E ratio of 17.5, and revenue of $21.2B. The company maintains a gross margin of 58.9% and a net margin of 12.4%. Return on equity stands at 8.9%.
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.