Is NETSCOUT SYSTEMS INC (NTCT) Halal?

NASDAQ Technology United States $2.3B
✓ HALAL
Confidence: 95/100
NETSCOUT SYSTEMS INC (NTCT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 2.0% against the AAOIFI threshold of 30%, NETSCOUT SYSTEMS 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 March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 2.0%
/ 30%
22.8%
/ 30%
7.6%
/ 30%
1.31%
/ 5%
✓ HALAL
DJIM 2.0%
/ 33%
22.8%
/ 33%
7.6%
/ 33%
1.31%
/ 5%
✓ HALAL
MSCI 2.0%
/ 33%
22.5%
/ 33%
7.5%
/ 33%
1.31%
/ 5%
✓ HALAL
S&P 2.0%
/ 33%
22.8%
/ 33%
7.6%
/ 33%
1.31%
/ 5%
✓ HALAL
FTSE 2.0%
/ 33%
22.5%
/ 33%
7.5%
/ 50%
1.31%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
24.0
Forward: 12.8
EPS
$1.33
P/B Ratio
1.4
EV/EBITDA
10.4
EV: $1.8B
Revenue
$823M
Growth: -0.5%
Beta
0.6
Low volatility
Current Ratio
1.9

Profitability

Gross Margin 79.2%
Operating Margin 25.7%
Net Margin 11.1%
Return on Equity (ROE) 6.1%
Return on Assets (ROA) 3.1%

Cash Flow & Balance Sheet

Operating Cash Flow$218M
Free Cash Flow$211M
Total Debt$44M
Debt-to-Equity2.5
Current Ratio1.9
Total Assets$2.2B

Price & Trading

Last Close$32.60
50-Day MA$29.24
200-Day MA$26.33
Avg Volume554K
Beta0.6
52-Week Range
$18.12
$32.87

About NETSCOUT SYSTEMS INC (NTCT)

CEO
Mr. Anil K. Singhal
Employees
2,102
Sector
Technology
Industry
Software - Infrastructure
Country
United States
Exchange
NASDAQ
Market Cap
$2.3B
Currency
USD

NetScout Systems, Inc. provides service assurance and cybersecurity solutions to protect digital business services against disruptions in the United States, Europe, Asia, and internationally. It offers nGeniusONE management software to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules to analyze and troubleshoot traffic in radio access and Wi-Fi networks. The company also provides nGeniusPULSE, an active testing tool to identify infrastructure performance issues and determine application availability, reliability, and performance; and nGenius Business Analytics solution, which enables service providers to analyze their network traffic. In addition, it offers ISNG platform for real-time collection and analysis of information-rich, high-volume packet-flow data from across the network that is displayed through the nGeniusONE Service Assurance Solution; vSTREAM, a virtualized form factor version of its intelligent data source; packet flow systems, including the nGeniusONE Service Assurance platform; and test access points. Further, the company provides cybersecurity solutions to protect networks against distributed denial of service attacks under the Arbor brand, such as Arbor Sightline, Arbor Threat Mitigation System, Arbor Insight, Arbor Edge Defense, and Arbor Cloud; and advanced threat detection solutions, such as Omnis Cyber Investigator. It serves enterprise customers in financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, cable operators, internet service providers, and cloud providers industries; and government and associated agencies through a direct sales force, and indirect reseller and distribution channels. The company was incorporated in 1984 and is headquartered in Westford, Massachusetts.

Purification Calculator

As a halal stock with 1.31% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is NETSCOUT SYSTEMS INC (NTCT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NETSCOUT SYSTEMS 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 NETSCOUT SYSTEMS INC's debt ratio?

NETSCOUT SYSTEMS INC's debt ratio is 2.0% 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 2.0%.

Does NETSCOUT SYSTEMS INC require dividend purification?

Yes, NETSCOUT SYSTEMS INC has an impermissible income ratio of 1.31%, which means 1.31% 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 NETSCOUT SYSTEMS INC's key financial metrics?

NETSCOUT SYSTEMS INC has a market capitalization of $2.3B, trailing P/E ratio of 24.0, and revenue of $823M. The company maintains a gross margin of 79.2% and a net margin of 11.1%. Return on equity stands at 6.1%.

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.