Is South32 (S32) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.1% / 30% | 8.3% / 30% | 2.0% / 30% | 4.48% / 5% | ✓ HALAL |
| DJIM | 8.1% / 33% | 8.3% / 33% | 2.0% / 33% | 4.48% / 5% | ✓ HALAL |
| MSCI | 11.9% / 33% | 12.2% / 33% | 3.0% / 33% | 4.48% / 5% | ✓ HALAL |
| S&P | 8.1% / 33% | 8.3% / 33% | 2.0% / 33% | 4.48% / 5% | ✓ HALAL |
| FTSE | 11.9% / 33% | 12.2% / 33% | 3.0% / 50% | 4.48% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 54.5% | |
| Operating Margin | 12.9% | |
| Net Margin | 5.4% | |
| Return on Equity (ROE) | 4.2% | |
| Return on Assets (ROA) | 3.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.3B |
| Free Cash Flow | $332M |
| Total Debt | $1.6B |
| Debt-to-Equity | 18.2 |
| Current Ratio | 2.7 |
| Total Assets | $13.7B |
Price & Trading
| Last Close | AUD 4.08 |
| 50-Day MA | AUD 4.39 |
| 200-Day MA | AUD 3.43 |
| Avg Volume | 18.1M |
| Beta | 0.7 |
|
52-Week Range
AUD 2.47
| |
About South32 (S32)
South32 Limited operates as a diversified metals and mining company. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, and manganese products. The company has operations in Australia, Bahrain, China, Japan, Italy, Mozambique, South Africa, the Netherlands, Brazil, South Korea, the United States, rest of Middle East, rest of Asia, rest of Europe, rest of North America, and rest of Oceania. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.
Purification Calculator
As a halal stock with 4.48% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is South32 (S32) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), South32 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 South32's debt ratio?
South32's debt ratio is 8.1% 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 11.9%.
Does South32 require dividend purification?
Yes, South32 has an impermissible income ratio of 4.48%, which means 4.48% 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 South32's key financial metrics?
South32 has a market capitalization of $18.1B, trailing P/E ratio of 31.0, and revenue of $5.8B. The company maintains a gross margin of 54.5% and a net margin of 5.4%. Return on equity stands at 4.2%.
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.