Is Parker-Hannifin Corp (PH) Halal?

NYSE Industrials United States $112.1B
✓ HALAL
Confidence: 95/100
Parker-Hannifin Corp (PH) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 8.0% against the AAOIFI threshold of 30%, Parker-Hannifin Corp comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.0%
/ 30%
0.4%
/ 30%
2.8%
/ 30%
0.06%
/ 5%
✓ HALAL
DJIM 8.0%
/ 33%
0.4%
/ 33%
2.8%
/ 33%
0.06%
/ 5%
✓ HALAL
MSCI 31.5%
/ 33%
1.6%
/ 33%
10.9%
/ 33%
0.06%
/ 5%
✓ HALAL
S&P 8.0%
/ 33%
0.4%
/ 33%
2.8%
/ 33%
0.06%
/ 5%
✓ HALAL
FTSE 31.5%
/ 33%
1.6%
/ 33%
10.9%
/ 50%
0.06%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
32.4
Forward: 26.1
EPS
$27.45
Dividend Yield
81.0%
Payout: 25.7%
P/B Ratio
7.8
EV/EBITDA
22.7
EV: $121.6B
Revenue
$19.9B
Growth: 9.1%
Beta
1.2
High volatility
Current Ratio
1.2

Profitability

Gross Margin 37.4%
Operating Margin 21.7%
Net Margin 17.3%
Return on Equity (ROE) 25.8%
Return on Assets (ROA) 9.4%

Cash Flow & Balance Sheet

Operating Cash Flow$3.8B
Free Cash Flow$3.3B
Total Debt$9.3B
Debt-to-Equity68.9
Current Ratio1.2
Total Assets$29.5B

Price & Trading

Last Close$901.46
50-Day MA$954.16
200-Day MA$821.48
Avg Volume695K
Beta1.2
52-Week Range
$488.45
$1,034.96

About Parker-Hannifin Corp (PH)

CEO
Ms. Jennifer A. Parmentier
Employees
57,950
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NYSE
Market Cap
$112.1B
Currency
USD

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America. The company operates through two segments: Diversified Industrial and Aerospace Systems. It offers various motion-control systems and components, such as active and passive vibration control, high purity sealing, coatings, high temperature sealing, cryogenic valves and fittings, HVAC/R controls and monitoring, elastomeric, fabric reinforced, metal, precision cut seals, hydrogen and natural gas filters, electric and hydraulic pumps and motors, industrial air, gas filtration, electric and hydraulic valves, miniature pumps and valves, electromagnetic interface shielding, pneumatic actuators, regulators and valves, electromechanical and hydraulic actuators, power take offs, electronics, drives and controllers, process filtration solutions, engine filtration solutions, rubber to substrate adhesives, fluid condition monitoring, sensors and diagnostics, fluid conveyance hose and tubing, structural adhesives, high pressure connectors, fittings, valves and regulators, thermal management, high purity fittings. The company also provides products for use in commercial and defense airframe and engine programs, such as avionics, electric and hydraulic braking systems, electric power, electromechanical actuators, engine exhaust systems and components, fire detection and suppression, flight control systems, fluid conveyance, fuel systems and components, fuel tank inserting systems, hydraulic pumps and motors, hydraulic valves and actuators, pneumatics, seals, sensors, and thermal management products. The company sells its products to original equipment manufacturers, distributors, direct-sales employees. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

Purification Calculator

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Frequently Asked Questions

Is Parker-Hannifin Corp (PH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Parker-Hannifin Corp 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 Parker-Hannifin Corp's debt ratio?

Parker-Hannifin Corp's debt ratio is 8.0% 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 31.5%.

Does Parker-Hannifin Corp require dividend purification?

Yes, Parker-Hannifin Corp has an impermissible income ratio of 0.06%, which means 0.06% 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 Parker-Hannifin Corp's key financial metrics?

Parker-Hannifin Corp has a market capitalization of $112.1B, trailing P/E ratio of 32.4, and revenue of $19.9B. The company maintains a gross margin of 37.4% and a net margin of 17.3%. Return on equity stands at 25.8%.

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.