Is ON Semiconductor (ON) Halal?

NYSE Technology United States $23.5B
✓ HALAL
Confidence: 95/100
ON Semiconductor (ON) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 13.1% against the AAOIFI threshold of 30%, ON Semiconductor comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 13.1%
/ 30%
11.1%
/ 30%
4.0%
/ 30%
1.59%
/ 5%
✓ HALAL
DJIM 13.1%
/ 33%
11.1%
/ 33%
4.0%
/ 33%
1.59%
/ 5%
✓ HALAL
MSCI 24.0%
/ 33%
20.3%
/ 33%
7.3%
/ 33%
1.59%
/ 5%
✓ HALAL
S&P 13.1%
/ 33%
11.1%
/ 33%
4.0%
/ 33%
1.59%
/ 5%
✓ HALAL
FTSE 24.0%
/ 33%
20.3%
/ 33%
7.3%
/ 50%
1.59%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
201.2
Forward: 14.5
EPS
$0.29
P/B Ratio
3.0
EV/EBITDA
13.5
EV: $23.7B
Revenue
$6.0B
Growth: -11.2%
Beta
1.5
High volatility
Current Ratio
4.5

Profitability

Gross Margin 38.3%
Operating Margin 19.1%
Net Margin 2.0%
Return on Equity (ROE) 1.5%
Return on Assets (ROA) 5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$1.8B
Free Cash Flow$1.4B
Total Debt$3.0B
Debt-to-Equity42.3
Current Ratio4.5
Total Assets$12.5B

Price & Trading

Last Close$60.87
50-Day MA$63.40
200-Day MA$55.25
Avg Volume8.5M
Beta1.5
52-Week Range
$31.04
$73.76

About ON Semiconductor (ON)

CEO
Mr. Hassane S. El-Khoury
Employees
22,600
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NYSE
Market Cap
$23.5B
Currency
USD

ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. It operates through three segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor devices designed to enable power conversion, including power switching, signal conditioning, and circuit protection technologies. Its Analog and Mixed-Signal Group segment designs and develops analog and mixed-signal solutions, including power management, sensor interface, connectivity, and standard products for automotive, industrial automation, AI data centers, computing, and mobile end markets. The Intelligent Sensing Group segment develops complementary metal-oxide-semiconductor image sensors, image signal processors, short-wave infrared sensors, and other products, as well as photon-counting technologies, including single-photon avalanche diode arrays and silicon photomultiplier devices for depth sensing, factory automation, safety systems, and robotics industries. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.

Purification Calculator

As a halal stock with 1.59% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Technology

Frequently Asked Questions

Is ON Semiconductor (ON) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ON Semiconductor 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 ON Semiconductor's debt ratio?

ON Semiconductor's debt ratio is 13.1% 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 24.0%.

Does ON Semiconductor require dividend purification?

Yes, ON Semiconductor has an impermissible income ratio of 1.59%, which means 1.59% 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 ON Semiconductor's key financial metrics?

ON Semiconductor has a market capitalization of $23.5B, trailing P/E ratio of 201.2, and revenue of $6.0B. The company maintains a gross margin of 38.3% and a net margin of 2.0%. Return on equity stands at 1.5%.

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.