Is Nestle (NESN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 28.0% / 30% | 2.9% / 30% | 4.2% / 30% | 0.33% / 5% | ✓ HALAL |
| DJIM | 28.0% / 33% | 2.9% / 33% | 4.2% / 33% | 0.33% / 5% | ✓ HALAL |
| MSCI | 45.5% / 33% | 4.7% / 33% | 6.9% / 33% | 0.33% / 5% | ✗ NOT HALAL |
| S&P | 28.0% / 33% | 2.9% / 33% | 4.2% / 33% | 0.33% / 5% | ✓ HALAL |
| FTSE | 45.5% / 33% | 4.7% / 33% | 6.9% / 50% | 0.33% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 45.8% | |
| Operating Margin | 14.9% | |
| Net Margin | 10.1% | |
| Return on Equity (ROE) | 26.5% | |
| Return on Assets (ROA) | 6.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $15.9B |
| Free Cash Flow | $11.0B |
| Total Debt | $57.9B |
| Debt-to-Equity | 175.0 |
| Current Ratio | 0.8 |
| Total Assets | $127.2B |
Price & Trading
| Last Close | CHF 76.20 |
| 50-Day MA | CHF 78.10 |
| 200-Day MA | CHF 76.98 |
| Avg Volume | 4.1M |
| Beta | 0.5 |
|
52-Week Range
CHF 69.90
| |
About Nestle (NESN)
Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. It operates through Zone North America; Zone Europe; Zone Asia, Oceania and Africa; Zone Latin America; Zone Greater China; Nestlé Health Science; and Nespresso segments. It offers water under the Acqua Panna, Nestlé Pure Life, Perrier, S.Pellegrino, Sanpellegrino, and other local brands; and chocolate and confectionery products under the Aero, Baci Perugina, KitKat, Milkybar, Smarties, and other local brands; family nutrition products, including early childhood, kids and teenagers, and maternal and adult products; cereals; dairy and drink products; food services, such as coffee, beverages, and food; healthcare nutrition products comprising lifestyle and medical nutrition products; plant-based products; and recipes. The company also provides coffee products under the Blue Bottle Coffee, Nescafé, Nescafé Dolce Gusto, Nespresso, and Starbucks Coffee At Home brands; culinary, chilled, and frozen food products under the DiGiorno, Garden Gourmet, Maggi, Thomy, and other local brands; ice cream products under the Antica Gelateria Del Corso, Drumstick, Extrême, Häagen-Dazs, Maxibon, and Mövenpick brands; and pet care products under the Cat Chow, Dentalife, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE, Purina Pro Plan, Purina Pro Plan Veterinary Diets, and other local brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.
Purification Calculator
As a halal stock with 0.33% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Nestle (NESN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Nestle 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 Nestle's debt ratio?
Nestle's debt ratio is 28.0% 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 45.5%.
Does Nestle require dividend purification?
Yes, Nestle has an impermissible income ratio of 0.33%, which means 0.33% 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 Nestle's key financial metrics?
Nestle has a market capitalization of $196.4B, trailing P/E ratio of 21.8, and revenue of $89.9B. The company maintains a gross margin of 45.8% and a net margin of 10.1%. Return on equity stands at 26.5%.
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.