Is SOUNDTHINKING, INC. (SSTI) Halal?

NASDAQ Technology United States $82M
✓ HALAL
Confidence: 95/100
SOUNDTHINKING, INC. (SSTI) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.6% against the AAOIFI threshold of 30%, SOUNDTHINKING, INC. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.6%
/ 30%
14.3%
/ 30%
27.6%
/ 30%
0.17%
/ 5%
✓ HALAL
DJIM 6.6%
/ 33%
14.3%
/ 33%
27.6%
/ 33%
0.17%
/ 5%
✓ HALAL
MSCI 4.4%
/ 33%
9.6%
/ 33%
18.6%
/ 33%
0.17%
/ 5%
✓ HALAL
S&P 6.6%
/ 33%
14.3%
/ 33%
27.6%
/ 33%
0.17%
/ 5%
✓ HALAL
FTSE 4.4%
/ 33%
9.6%
/ 33%
18.6%
/ 50%
0.17%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.74
P/B Ratio
1.1
EV/EBITDA
40.9
EV: $71M
Beta
1.2
High volatility
Current Ratio
0.8

Profitability

Gross Margin 54.8%
Operating Margin -8.9%
Net Margin -9.0%
Return on Equity (ROE) -13.0%
Return on Assets (ROA) -3.7%

Cash Flow & Balance Sheet

Operating Cash Flow$22M
Free Cash Flow$16M
Total Debt$6M
Debt-to-Equity6.9
Current Ratio0.8
Total Assets$137M

Price & Trading

Last Close$6.62
50-Day MA$7.10
200-Day MA$9.92
Avg Volume200K
Beta1.2
52-Week Range
$5.78
$17.43

About SOUNDTHINKING, INC. (SSTI)

CEO
Mr. Ralph A. Clark
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$82M
Currency
USD

SoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, a law enforcement search engine that enables investigators to search through criminal justice records from across jurisdictions to generate tactical leads and solve cases; CaseBuilder, an investigative management system for tracking, reporting, and collaborating on cases; ResourceRouter, a software that directs deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an advanced license plate recognition (ALPR) and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and save critical minutes for first responders to arrive. It sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

Purification Calculator

As a halal stock with 0.17% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is SOUNDTHINKING, INC. (SSTI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SOUNDTHINKING, INC. 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 SOUNDTHINKING, INC.'s debt ratio?

SOUNDTHINKING, INC.'s debt ratio is 6.6% 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 4.4%.

Does SOUNDTHINKING, INC. require dividend purification?

Yes, SOUNDTHINKING, INC. has an impermissible income ratio of 0.17%, which means 0.17% 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 SOUNDTHINKING, INC.'s key financial metrics?

SOUNDTHINKING, INC. has a market capitalization of $82M. The company maintains a gross margin of 54.8% and a net margin of -9.0%. Return on equity stands at -13.0%.

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.