Is NIO (NIO) Halal?

NASDAQ Consumer Cyclical China $13.4B
✗ NOT HALAL
Confidence: 90/100
NIO (NIO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 279.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. NIO operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 279.8%
/ 30%
182.8%
/ 30%
98.3%
/ 30%
1.3%
/ 5%
✗ NOT HALAL
DJIM 279.8%
/ 33%
182.8%
/ 33%
98.3%
/ 33%
1.3%
/ 5%
✗ NOT HALAL
MSCI 31.4%
/ 33%
20.5%
/ 33%
11.0%
/ 33%
1.3%
/ 5%
✓ HALAL
S&P 279.8%
/ 33%
182.8%
/ 33%
98.3%
/ 33%
1.3%
/ 5%
✗ NOT HALAL
FTSE 31.4%
/ 33%
20.5%
/ 33%
11.0%
/ 50%
1.3%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.99
P/B Ratio
21.8
EV/EBITDA
-2.2
EV: $16.8B
Beta
1.2
Average volatility
Current Ratio
1.0

Profitability

Gross Margin 13.7%
Operating Margin 2.3%
Net Margin -17.8%
Return on Equity (ROE) -118.7%
Return on Assets (ROA) -7.3%

Cash Flow & Balance Sheet

Operating Cash Flow-$7.8B
Free Cash Flow-$17.0B
Total Debt$33.8B
Debt-to-Equity206.7
Current Ratio1.0
Total Assets$107.6B

Price & Trading

Last Close$5.56
50-Day MA$5.07
200-Day MA$5.41
Avg Volume47.6M
Beta1.2
52-Week Range
$3.02
$8.02

About NIO (NIO)

CEO
Mr. Bin Li
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Country
China
Exchange
NASDAQ
Market Cap
$13.4B
Currency
USD

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China, Europe, and internationally. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery-swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for power valet service. In addition, it provides repair, maintenance, and bodywork services through its service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and maintenance; courtesy vehicle; data packages; and auto financing and financial leasing services. Further, the company is involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of electric powertrains, battery packs, and components; and sales and after-sales management activities. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is based in Shanghai, China.

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Frequently Asked Questions

Is NIO (NIO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NIO is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NIO's debt ratio?

NIO's debt ratio is 279.8% 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 31.4%.

What are NIO's key financial metrics?

NIO has a market capitalization of $13.4B. The company maintains a gross margin of 13.7% and a net margin of -17.8%. Return on equity stands at -118.7%.

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.