Is Philips (PHIA) Halal?

AMS Healthcare Netherlands $22.3B
✗ NOT HALAL
Confidence: 90/100
Philips (PHIA) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 33.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Philips operates in the Healthcare sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 33.0%
/ 30%
11.8%
/ 30%
16.7%
/ 30%
0.47%
/ 5%
✗ NOT HALAL
DJIM 33.0%
/ 33%
11.8%
/ 33%
16.7%
/ 33%
0.47%
/ 5%
✓ HALAL
MSCI 29.0%
/ 33%
10.4%
/ 33%
14.6%
/ 33%
0.47%
/ 5%
✓ HALAL
S&P 33.0%
/ 33%
11.8%
/ 33%
16.7%
/ 33%
0.47%
/ 5%
✓ HALAL
FTSE 29.0%
/ 33%
10.4%
/ 33%
14.6%
/ 50%
0.47%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
25.2
Forward: 13.7
EPS
$0.93
Dividend Yield
362.0%
Payout: 91.4%
P/B Ratio
2.0
EV/EBITDA
13.7
EV: $27.7B
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 CloseEUR 23.72
50-Day MAEUR 25.08
200-Day MAEUR 23.73
Avg Volume1.6M
Beta0.9
52-Week Range
EUR 18.90
EUR 27.70

About Philips (PHIA)

CEO
Mr. Roy W. O. Jakobs
Employees
61,085
Sector
Healthcare
Industry
Medical Devices
Country
Netherlands
Exchange
AMS
Market Cap
$22.3B
Currency
EUR

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.

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Frequently Asked Questions

Is Philips (PHIA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Philips is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Philips's debt ratio?

Philips's debt ratio is 33.0% 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 29.0%.

What are Philips's key financial metrics?

Philips has a market capitalization of $22.3B, trailing P/E ratio of 25.2, 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.