Is KONINKLIJKE PHILIPS NV (PHG) Halal?

NYSE Healthcare Netherlands $25.7B
✓ HALAL
Confidence: 95/100
KONINKLIJKE PHILIPS NV (PHG) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 28.2% against the AAOIFI threshold of 30%, KONINKLIJKE PHILIPS NV comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Devices), 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 28.2%
/ 30%
10.1%
/ 30%
14.2%
/ 30%
0.47%
/ 5%
✓ HALAL
DJIM 28.2%
/ 33%
10.1%
/ 33%
14.2%
/ 33%
0.47%
/ 5%
✓ HALAL
MSCI 29.0%
/ 33%
10.4%
/ 33%
14.6%
/ 33%
0.47%
/ 5%
✓ HALAL
S&P 28.2%
/ 33%
10.1%
/ 33%
14.2%
/ 33%
0.47%
/ 5%
✓ HALAL
FTSE 29.0%
/ 33%
10.4%
/ 33%
14.6%
/ 50%
0.47%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
25.0
Forward: 12.8
EPS
$1.07
Dividend Yield
378.0%
Payout: 91.7%
P/B Ratio
2.0
EV/EBITDA
15.3
EV: $30.8B
Revenue
$17.8B
Growth: 1.1%
Beta
0.9
Average volatility
Current Ratio
1.3

Profitability

Gross Margin 45.2%
Operating Margin 10.7%
Net Margin 5.0%
Return on Equity (ROE) 7.8%
Return on Assets (ROA) 3.2%

Cash Flow & Balance Sheet

Operating Cash Flow$1.2B
Free Cash Flow$504M
Total Debt$7.8B
Debt-to-Equity73.6
Current Ratio1.3
Total Assets$26.9B

Price & Trading

Last Close$27.14
50-Day MA$29.49
200-Day MA$27.56
Avg Volume929K
Beta0.9
52-Week Range
$21.48
$33.44

About KONINKLIJKE PHILIPS NV (PHG)

CEO
Mr. Roy W. O. Jakobs
Employees
61,085
Sector
Healthcare
Industry
Medical Devices
Country
Netherlands
Exchange
NYSE
Market Cap
$25.7B
Currency
USD

Koninklijke Philips N.V. operates as a health technology company in North America, the Greater China, and internationally. It operates through Diagnosis & Treatment, Connected Care, and Personal Health segments. The company provides diagnostic imaging solutions, includes ultrasound business unit, magnetic resonance imaging, computed tomography, and diagnostic x-ray; Image Guided Therapy, including image guided therapy systems and image guided therapy devices. It also offers monitoring, enterprise informatics, and sleep and respiratory care, as well as personal health. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

Purification Calculator

As a halal stock with 0.47% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is KONINKLIJKE PHILIPS NV (PHG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), KONINKLIJKE PHILIPS NV 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 KONINKLIJKE PHILIPS NV's debt ratio?

KONINKLIJKE PHILIPS NV's debt ratio is 28.2% 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 29.0%.

Does KONINKLIJKE PHILIPS NV require dividend purification?

Yes, KONINKLIJKE PHILIPS NV has an impermissible income ratio of 0.47%, which means 0.47% 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 KONINKLIJKE PHILIPS NV's key financial metrics?

KONINKLIJKE PHILIPS NV has a market capitalization of $25.7B, trailing P/E ratio of 25.0, and revenue of $17.8B. The company maintains a gross margin of 45.2% and a net margin of 5.0%. Return on equity stands at 7.8%.

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.