Is Newegg Commerce, Inc. (NEGG) Halal?

NASDAQ Consumer Cyclical United States $851M
✓ HALAL
Confidence: 95/100
Newegg Commerce, Inc. (NEGG) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 8.2% against the AAOIFI threshold of 30%, Newegg Commerce, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Internet Retail), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.2%
/ 30%
10.8%
/ 30%
7.5%
/ 30%
0.22%
/ 5%
✓ HALAL
DJIM 8.2%
/ 33%
10.8%
/ 33%
7.5%
/ 33%
0.22%
/ 5%
✓ HALAL
MSCI 17.9%
/ 33%
23.6%
/ 33%
16.4%
/ 33%
0.22%
/ 5%
✓ HALAL
S&P 8.2%
/ 33%
10.8%
/ 33%
7.5%
/ 33%
0.22%
/ 5%
✓ HALAL
FTSE 17.9%
/ 33%
23.6%
/ 33%
16.4%
/ 50%
0.22%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-1.18
P/B Ratio
6.9
EV/EBITDA
-40.9
EV: $808M
Revenue
$1.2B
Growth: 12.5%
Beta
4.4
High volatility
Current Ratio
1.3

Profitability

Gross Margin 11.3%
Operating Margin -1.1%
Net Margin -1.7%
Return on Equity (ROE) -19.7%
Return on Assets (ROA) -4.8%

Cash Flow & Balance Sheet

Operating Cash Flow-$821,000
Free Cash Flow-$4M
Total Debt$73M
Debt-to-Equity66.1
Current Ratio1.3
Total Assets$407M

Price & Trading

Last Close$41.13
50-Day MA$46.72
200-Day MA$51.37
Avg Volume70K
Beta4.4
52-Week Range
$3.32
$137.84

About Newegg Commerce, Inc. (NEGG)

CEO
Mr. Anthony K. Chow
Employees
762
Sector
Consumer Cyclical
Industry
Internet Retail
Country
United States
Exchange
NASDAQ
Market Cap
$851M
Currency
USD

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in the United States, Canada, and internationally. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; and software, virtual reality, gaming consoles, networking, digital games, home appliances, gaming desks/chairs, and TVs. It provides supply chain third-party services, such as Shipped by Newegg, offers warehousing and fulfillment services; Newegg Logistics, provides warehousing, inventory management, order processing, packing, and shipping; and Newegg Staffing, offers clerical, manufacturing, and logistics employee placement. In addition, the company operates B2C platforms, including Newegg.com, an online e-commerce platform; Newegg.ca, an e-commerce platform focusing on IT/CE products; and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. It sells its products under the Asus, MSI, HP, Lenovo, Acer, Microsoft, Samsung, LG, Gigabyte, Logitech, Intel, AMD, MSI, Corsair, ASRock, Western Digital, Seagate, G.Skill, Meta, PlayStation, Dyson, Netgear, Nintendo, H&R Block, and Adobe brands. The company was founded in 2001 and is headquartered in Diamond Bar, California. Newegg Commerce, Inc. is a subsidiary of Digital Grid (Hong Kong) Technology Co., Ltd.

Purification Calculator

As a halal stock with 0.22% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Newegg Commerce, Inc. (NEGG) halal to invest in?

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

Newegg Commerce, Inc.'s debt ratio is 8.2% 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 17.9%.

Does Newegg Commerce, Inc. require dividend purification?

Yes, Newegg Commerce, Inc. has an impermissible income ratio of 0.22%, which means 0.22% 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 Newegg Commerce, Inc.'s key financial metrics?

Newegg Commerce, Inc. has a market capitalization of $851M, and revenue of $1.2B. The company maintains a gross margin of 11.3% and a net margin of -1.7%. Return on equity stands at -19.7%.

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.