Is SGS (SGSN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 27.2% / 30% | 13.0% / 30% | 5.5% / 30% | 0.49% / 5% | ✓ HALAL |
| DJIM | 27.2% / 33% | 13.0% / 33% | 5.5% / 33% | 0.49% / 5% | ✓ HALAL |
| MSCI | 62.1% / 33% | 29.6% / 33% | 12.4% / 33% | 0.49% / 5% | ✗ NOT HALAL |
| S&P | 27.2% / 33% | 13.0% / 33% | 5.5% / 33% | 0.49% / 5% | ✓ HALAL |
| FTSE | 62.1% / 33% | 29.6% / 33% | 12.4% / 50% | 0.49% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 44.3% | |
| Operating Margin | 15.0% | |
| Net Margin | 9.6% | |
| Return on Equity (ROE) | 76.6% | |
| Return on Assets (ROA) | 8.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.2B |
| Free Cash Flow | $968M |
| Total Debt | $4.9B |
| Debt-to-Equity | 492.2 |
| Current Ratio | 1.4 |
| Total Assets | $7.9B |
Price & Trading
| Last Close | CHF 85.04 |
| 50-Day MA | CHF 92.25 |
| 200-Day MA | CHF 87.83 |
| Avg Volume | 415K |
| Beta | 0.5 |
|
52-Week Range
CHF 71.12
| |
About SGS (SGSN)
SGS SA operates as a testing, inspection, and certification company in the Asia Pacific, Europe, North America, Eastern Europe, the Middle East and Africa, and America. It operates in two segments, Testing & Inspection and Certification. The company offers testing services, such as crop production testing, agricultural commodities testing, field studies, laboratory studies, seed quality control, and seed research and development; and inspection services, including draft survey and marine services, e-certificates, loading and discharge supervision, pre-shipment inspection, quality and quantity inspection, and tally. It also provides consulting, digital trust assurance, medical devices regulatory compliance, product certification, supply chain assurance, sustainability assurance, and verification and assurance, as well as assessment, auditing, and certification services; and professional training services. The company serves agriculture and forestry, building and infrastructure, consumer products and retail, cosmetics and personal care, cybersecurity and technology, environmental, health and safety, food, government and trade facilitation, industrial manufacturing and processing, MedTech, mining, oil, gas and chemicals, pharma, power and utilities, and transportation industries. SGS SA was founded in 1878 and is headquartered in Baar, Switzerland.
Purification Calculator
As a halal stock with 0.49% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SGS (SGSN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SGS 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 SGS's debt ratio?
SGS's debt ratio is 27.2% 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 62.1%.
Does SGS require dividend purification?
Yes, SGS has an impermissible income ratio of 0.49%, which means 0.49% 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 SGS's key financial metrics?
SGS has a market capitalization of $16.2B, trailing P/E ratio of 24.2, and revenue of $6.9B. The company maintains a gross margin of 44.3% and a net margin of 9.6%. Return on equity stands at 76.6%.
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.