Is SEMTECH CORP (SMTC) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.3% / 30% | 2.2% / 30% | 2.5% / 30% | 0.25% / 5% | ✓ HALAL |
| DJIM | 7.3% / 33% | 2.2% / 33% | 2.5% / 33% | 0.25% / 5% | ✓ HALAL |
| MSCI | 39.3% / 33% | 11.6% / 33% | 13.3% / 33% | 0.25% / 5% | ✗ NOT HALAL |
| S&P | 7.3% / 33% | 2.2% / 33% | 2.5% / 33% | 0.25% / 5% | ✓ HALAL |
| FTSE | 39.3% / 33% | 11.6% / 33% | 13.3% / 50% | 0.25% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 52.5% | |
| Operating Margin | 9.9% | |
| Net Margin | -3.8% | |
| Return on Equity (ROE) | -7.4% | |
| Return on Assets (ROA) | 5.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $58M |
| Free Cash Flow | $44M |
| Total Debt | $558M |
| Debt-to-Equity | 94.2 |
| Current Ratio | 2.4 |
| Total Assets | $1.4B |
Price & Trading
| Last Close | $74.16 |
| 50-Day MA | $83.72 |
| 200-Day MA | $67.19 |
| Avg Volume | 1.6M |
| Beta | 2.0 |
|
52-Week Range
$24.05
| |
About SEMTECH CORP (SMTC)
Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe. The company operates in three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. It provides signal integrity products, including a portfolio of optical and copper data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers analog mixed signal and wireless products; protection devices, such as filter and termination devices which protect electronic systems from voltage spikes; and designs, develops, manufactures, and markets radio frequency products used in industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, the company offers a portfolio of IoT systems and connectivity solutions, such as modules, gateways, routers, and connected services, including wireless connectivity and cloud-based services for industrial, medical, and communications applications. It serves original equipment manufacturers, solution providers, commercial applications, infrastructure, high-end consumer, and industrial end markets. The company sells its products through direct sales personnel, independent sales representative firms, and independent distributors. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.
Purification Calculator
As a halal stock with 0.25% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SEMTECH CORP (SMTC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SEMTECH CORP 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 SEMTECH CORP's debt ratio?
SEMTECH CORP's debt ratio is 7.3% 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 39.3%.
Does SEMTECH CORP require dividend purification?
Yes, SEMTECH CORP has an impermissible income ratio of 0.25%, which means 0.25% 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 SEMTECH CORP's key financial metrics?
SEMTECH CORP has a market capitalization of $6.7B. The company maintains a gross margin of 52.5% and a net margin of -3.8%. Return on equity stands at -7.4%.
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.