Is ST Engineering (S63) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 14.2% / 30% | 1.7% / 30% | 4.3% / 30% | 0.1% / 5% | ✓ HALAL |
| DJIM | 14.2% / 33% | 1.7% / 33% | 4.3% / 33% | 0.1% / 5% | ✓ HALAL |
| MSCI | 30.1% / 33% | 3.6% / 33% | 9.2% / 33% | 0.1% / 5% | ✓ HALAL |
| S&P | 14.2% / 33% | 1.7% / 33% | 4.3% / 33% | 0.1% / 5% | ✓ HALAL |
| FTSE | 30.1% / 33% | 3.6% / 33% | 9.2% / 50% | 0.1% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 19.0% | |
| Operating Margin | 9.0% | |
| Net Margin | 3.7% | |
| Return on Equity (ROE) | 16.9% | |
| Return on Assets (ROA) | 4.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.7B |
| Free Cash Flow | $1.1B |
| Total Debt | $4.8B |
| Debt-to-Equity | 165.4 |
| Current Ratio | 1.1 |
| Total Assets | $16.0B |
Price & Trading
| Last Close | SGD 10.93 |
| 50-Day MA | SGD 10.28 |
| 200-Day MA | SGD 8.85 |
| Avg Volume | 6.0M |
| Beta | 0.2 |
|
52-Week Range
SGD 6.13
| |
About ST Engineering (S63)
Singapore Technologies Engineering Ltd operates as a technology, defence, and engineering company worldwide. The company operates through Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom segments. It provides cabin interiors and engineering solutions; turnkey solutions for composite panels; passenger-to-freighter conversion services; nacelles and aerostructures solutions; precision manufacturing services; unmanned aircraft system solutions; maintenance, repair, and overhaul (MRO) services for airframes, engines, and components; and aviation asset management services, including aircraft and engine leasing. It also offers integrated transport operations center; smart mobility solutions, including smart metro systems, smart rail MRO solutions, commercial and electric vehicles, fleet management systems, smart traffic systems, tolling and congestion pricing solutions, and mobility services, as well as AGIL Bus Rapid Transit, a future-ready mobility system that offers both rail and bus systems; smart security, lighting, water, and sensors; digital platforms; AGIL Smart Energy Building solutions; digital health, financial technologies, and urban environment solutions. In addition, the company provides defense and security solutions for air, land, and sea; smart facilities; training and simulation systems; logistics and facilities management, advanced manufacturing, and critical infrastructure solutions; homeland security; maritime systems; cybersecurity, data science, analytics, and AI solutions; cloud and data orchestration services; advanced connectivity solutions; and business process outsourcing services. Further, it designs and delivers robust command, control, communications, computers, cybersecurity, intelligence, surveillance, and reconnaissance solutions; and Wing-in-Ground craft solutions. The company was founded in 1967 and is headquartered in Singapore.
Purification Calculator
As a halal stock with 0.10% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ST Engineering (S63) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ST Engineering 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 ST Engineering's debt ratio?
ST Engineering's debt ratio is 14.2% 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 30.1%.
Does ST Engineering require dividend purification?
Yes, ST Engineering has an impermissible income ratio of 0.10%, which means 0.10% 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 ST Engineering's key financial metrics?
ST Engineering has a market capitalization of $34.3B, trailing P/E ratio of 73.2, and revenue of $12.3B. The company maintains a gross margin of 19.0% and a net margin of 3.7%. Return on equity stands at 16.9%.
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.