Is REA Group (REA) Halal?

ASX Communication Services Australia $20.1B
✓ HALAL
Confidence: 95/100
REA Group (REA) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, REA Group comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Internet Content & Information), 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 0.3%
/ 30%
1.9%
/ 30%
1.4%
/ 30%
0.71%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
1.9%
/ 33%
1.4%
/ 33%
0.71%
/ 5%
✓ HALAL
MSCI 2.5%
/ 33%
15.1%
/ 33%
11.4%
/ 33%
0.71%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
1.9%
/ 33%
1.4%
/ 33%
0.71%
/ 5%
✓ HALAL
FTSE 2.5%
/ 33%
15.1%
/ 33%
11.4%
/ 50%
0.71%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
35.1
Forward: 27.4
EPS
$4.34
Dividend Yield
163.0%
Payout: 57.2%
P/B Ratio
9.8
EV/EBITDA
22.9
EV: $19.8B
Revenue
$1.9B
Growth: 6.1%
Beta
0.7
Low volatility
Current Ratio
2.8

Profitability

Gross Margin 62.7%
Operating Margin 47.5%
Net Margin 29.3%
Return on Equity (ROE) 28.4%
Return on Assets (ROA) 18.7%

Cash Flow & Balance Sheet

Free Cash Flow$537M
Total Debt$71M
Debt-to-Equity4.3
Current Ratio2.8
Total Assets$2.8B

Price & Trading

Last CloseAUD 153.62
50-Day MAAUD 170.03
200-Day MAAUD 207.26
Avg Volume310K
Beta0.7
52-Week Range
AUD 150.01
AUD 265.98

About REA Group (REA)

CEO
Mr. Cameron Lloyd McIntyre CPA
Employees
3,418
Sector
Communication Services
Industry
Internet Content & Information
Country
Australia
Exchange
ASX
Market Cap
$20.1B
Currency
AUD

REA Group Limited, together with its subsidiaries, engages in online property advertising business in Australia, Asia, and North America It provides property and property-related services on websites and mobile applications. The company operates residential, commercial, and share property sites, such as realestate.com.au, realcommercial.com.au, flatmates.com.au, property.com.au, housing.com, makaan.com, proptiger.com, and realtor.com. It is also involved in the provision of mortgage brokerage and home financing solutions; property data services; mortgage application and e-lodgement solutions for the broking and lending industries; commercial real estate information and technology; vendor paid advertising; digital non-bank lending solutions; and home loans. The company was formerly known as realestate.com.au Ltd. and changed its name to REA Group Limited in December 2008. REA Group Limited was incorporated in 1995 and is headquartered in Richmond, Australia. REA Group Limited operates as a subsidiary of News Corporation.

Purification Calculator

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Frequently Asked Questions

Is REA Group (REA) halal to invest in?

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

REA Group's debt ratio is 0.3% 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 2.5%.

Does REA Group require dividend purification?

Yes, REA Group has an impermissible income ratio of 0.71%, which means 0.71% 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 REA Group's key financial metrics?

REA Group has a market capitalization of $20.1B, trailing P/E ratio of 35.1, and revenue of $1.9B. The company maintains a gross margin of 62.7% and a net margin of 29.3%. Return on equity stands at 28.4%.

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.