Is NATHANS FAMOUS, INC. (NATH) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 13.6% / 30% | 6.8% / 30% | 3.6% / 30% | 0.45% / 5% | ✓ HALAL |
| DJIM | 13.6% / 33% | 6.8% / 33% | 3.6% / 33% | 0.45% / 5% | ✓ HALAL |
| MSCI | 104.6% / 33% | 52.0% / 33% | 27.4% / 33% | 0.45% / 5% | ✗ NOT HALAL |
| S&P | 13.6% / 33% | 6.8% / 33% | 3.6% / 33% | 0.45% / 5% | ✓ HALAL |
| FTSE | 104.6% / 33% | 52.0% / 33% | 27.4% / 50% | 0.45% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 30.6% | |
| Operating Margin | 14.9% | |
| Net Margin | 13.6% | |
| Return on Assets (ROA) | 39.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $25M |
| Free Cash Flow | $25M |
| Total Debt | $56M |
| Current Ratio | 2.7 |
| Total Assets | $53M |
Price & Trading
| Last Close | $100.49 |
| 50-Day MA | $100.35 |
| 200-Day MA | $102.14 |
| Avg Volume | 55K |
| Beta | 0.3 |
|
52-Week Range
$88.00
| |
About NATHANS FAMOUS, INC. (NATH)
Nathan's Famous, Inc., along with its subsidiaries, operates in the foodservice industry both in the United States and internationally. It operates through three segments: Branded Product Program; Product licensing; and Restaurant operations. The company owns and franchises restaurants under the Nathan's Famous brand name and sells products bearing the Nathan's Famous trademarks through various distribution channels. It also has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded beef hot dogs, crinkle-cut french fries, and sausages in refrigerated consumer packages, which are resold through retail channels such as supermarkets, grocery stores, mass merchandisers, and club stores. In addition, the company has license agreements to manufacture Nathan's Famous branded hot dog and sausage products in bulk for use in the foodservice industry, supply Nathan's Famous natural casing and skinless hot dogs in bulk for use in the Nathan's Famous restaurant system, manufacture proprietary spices, produce and distribute pickles, and produce and sell french fries and onion rings for retail sale. Further, the company produces and sells miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, corn dog nuggets, other hors d'oeuvres, and bottled mustard through club stores, supermarkets, and other retail food stores. Additionally, it sells Nathan's products directly to foodservice operators or various foodservice distributors and provides Arthur Treacher's branded fish fillets. Nathan's Famous, Inc. was founded in 1916 and is headquartered in Jericho, New York.
Purification Calculator
As a halal stock with 0.45% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is NATHANS FAMOUS, INC. (NATH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), NATHANS FAMOUS, 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 NATHANS FAMOUS, INC.'s debt ratio?
NATHANS FAMOUS, INC.'s debt ratio is 13.6% 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 104.6%.
Does NATHANS FAMOUS, INC. require dividend purification?
Yes, NATHANS FAMOUS, INC. has an impermissible income ratio of 0.45%, which means 0.45% 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 NATHANS FAMOUS, INC.'s key financial metrics?
NATHANS FAMOUS, INC. has a market capitalization of $412M, trailing P/E ratio of 19.4, and revenue of $148M. The company maintains a gross margin of 30.6% and a net margin of 13.6%.
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.