Is STMicroelectronics N.V. (STM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.3% / 30% | 17.4% / 30% | 9.9% / 30% | 1.89% / 5% | ✓ HALAL |
| DJIM | 8.3% / 33% | 17.4% / 33% | 9.9% / 33% | 1.89% / 5% | ✓ HALAL |
| MSCI | 9.5% / 33% | 19.8% / 33% | 11.3% / 33% | 1.89% / 5% | ✓ HALAL |
| S&P | 8.3% / 33% | 17.4% / 33% | 9.9% / 33% | 1.89% / 5% | ✓ HALAL |
| FTSE | 9.5% / 33% | 19.8% / 33% | 11.3% / 50% | 1.89% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 33.9% | |
| Operating Margin | 7.4% | |
| Net Margin | 1.4% | |
| Return on Equity (ROE) | 1.0% | |
| Return on Assets (ROA) | 1.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.2B |
| Free Cash Flow | -$52M |
| Total Debt | $2.4B |
| Debt-to-Equity | 12.9 |
| Current Ratio | 3.4 |
| Total Assets | $24.8B |
Price & Trading
| Last Close | $32.91 |
| 50-Day MA | $31.77 |
| 200-Day MA | $28.30 |
| Avg Volume | 7.9M |
| Beta | 1.4 |
|
52-Week Range
$17.25
| |
About STMicroelectronics N.V. (STM)
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (EMP); and RF Products (D&RF) segments. It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions. The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.
Purification Calculator
As a halal stock with 1.89% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is STMicroelectronics N.V. (STM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), STMicroelectronics N.V. 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 STMicroelectronics N.V.'s debt ratio?
STMicroelectronics N.V.'s debt ratio is 8.3% 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 9.5%.
Does STMicroelectronics N.V. require dividend purification?
Yes, STMicroelectronics N.V. has an impermissible income ratio of 1.89%, which means 1.89% 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 STMicroelectronics N.V.'s key financial metrics?
STMicroelectronics N.V. has a market capitalization of $28.9B, trailing P/E ratio of 180.8, and revenue of $11.8B. The company maintains a gross margin of 33.9% and a net margin of 1.4%. Return on equity stands at 1.0%.
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.