Is NetApp, Inc. (NTAP) Halal?

NASDAQ Technology United States $20.3B
✓ HALAL
Confidence: 95/100
NetApp, Inc. (NTAP) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 17.4% against the AAOIFI threshold of 30%, NetApp, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Infrastructure), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from April 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 17.4%
/ 30%
19.2%
/ 30%
6.2%
/ 30%
1.7%
/ 5%
✓ HALAL
DJIM 17.4%
/ 33%
19.2%
/ 33%
6.2%
/ 33%
1.7%
/ 5%
✓ HALAL
MSCI 32.3%
/ 33%
35.5%
/ 33%
11.5%
/ 33%
1.7%
/ 5%
✗ NOT HALAL
S&P 17.4%
/ 33%
19.2%
/ 33%
6.2%
/ 33%
1.7%
/ 5%
✓ HALAL
FTSE 32.3%
/ 33%
35.5%
/ 33%
11.5%
/ 50%
1.7%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
17.2
Forward: 12.0
EPS
$5.96
Dividend Yield
203.0%
Payout: 34.9%
P/B Ratio
17.5
EV/EBITDA
11.4
EV: $19.9B
Revenue
$6.6B
Growth: 4.4%
Beta
1.3
High volatility
Current Ratio
1.4

Profitability

Gross Margin 70.5%
Operating Margin 25.2%
Net Margin 18.1%
Return on Equity (ROE) 112.6%
Return on Assets (ROA) 10.3%

Cash Flow & Balance Sheet

Operating Cash Flow$1.5B
Free Cash Flow$1.3B
Total Debt$3.5B
Debt-to-Equity236.1
Current Ratio1.4
Total Assets$10.8B

Price & Trading

Last Close$104.45
50-Day MA$100.63
200-Day MA$109.02
Avg Volume2.4M
Beta1.3
52-Week Range
$71.84
$126.66

About NetApp, Inc. (NTAP)

CEO
Mr. George Kurian
Employees
11,700
Sector
Technology
Industry
Software - Infrastructure
Country
United States
Exchange
NASDAQ
Market Cap
$20.3B
Currency
USD

NetApp, Inc. provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Hybrid Cloud and Public Cloud. The company offers data management software, such as NetApp ONTAP, ONTAP One, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, and NetApp SnapLock Data Compliance; and storage infrastructure solutions, including NetApp All-Flash FAS (AFF A-Series), NetApp All-Flash FAS with capacity flash (AFF C-Series), NetApp All-Flash SAN Array (ASA A-Series & C-Series), NetApp Fabric Attached Storage (FAS), NetApp E/EF series, and NetApp StorageGRID. It also provides cloud storage services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, and Google Cloud NetApp Volumes, as well as NetApp BlueXP, BlueXP Copy and Sync, BlueXP Backup and Recovery, BlueXP Classification, and BlueXP Ransomware Protection. In addition, the company offers operational services, such as NetApp Data Infrastructure Insights and Instaclustr; and professional and support services offerings include storage-as-a-service (STaaS), strategic consulting, professional, managed, and support services, as well as assessment, design, implementation, migration, and proactive support services to help customers optimize the performance and efficiency of their on-premises and hybrid multicloud storage environments. It serves various industries comprising energy, financial services, government, technology, internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications through a direct sales force and an ecosystem of partners, including the leading cloud providers. The company has a strategic alliance with Commvault Systems, Inc. to develop an integrated solution for enterprise data protection and cyber resilience. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

Purification Calculator

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Frequently Asked Questions

Is NetApp, Inc. (NTAP) halal to invest in?

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

NetApp, Inc.'s debt ratio is 17.4% 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 32.3%.

Does NetApp, Inc. require dividend purification?

Yes, NetApp, Inc. has an impermissible income ratio of 1.70%, which means 1.70% 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 NetApp, Inc.'s key financial metrics?

NetApp, Inc. has a market capitalization of $20.3B, trailing P/E ratio of 17.2, and revenue of $6.6B. The company maintains a gross margin of 70.5% and a net margin of 18.1%. Return on equity stands at 112.6%.

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.