Is Tokyo Lifestyle Co., Ltd. (TKLF) Halal?

NASDAQ Consumer Cyclical Japan $9M
✗ NOT HALAL
Confidence: 90/100
Tokyo Lifestyle Co., Ltd. (TKLF) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 594.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Tokyo Lifestyle Co., Ltd. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 594.2%
/ 30%
40.1%
/ 30%
952.2%
/ 30%
0.92%
/ 5%
✗ NOT HALAL
DJIM 594.2%
/ 33%
40.1%
/ 33%
952.2%
/ 33%
0.92%
/ 5%
✗ NOT HALAL
MSCI 45.3%
/ 33%
3.1%
/ 33%
72.5%
/ 33%
0.92%
/ 5%
✗ NOT HALAL
S&P 594.2%
/ 33%
40.1%
/ 33%
952.2%
/ 33%
0.92%
/ 5%
✗ NOT HALAL
FTSE 45.3%
/ 33%
3.1%
/ 33%
72.5%
/ 50%
0.92%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
2.0
EPS
$1.10
Dividend Yield
1101.0%
Payout: 10.9%
P/B Ratio
0.2
EV/EBITDA
20.1
EV: $168M
Revenue
$210M
Growth: 94.3%
Beta
0.1
Low volatility
Current Ratio
1.2

Profitability

Gross Margin 9.1%
Operating Margin 1.0%
Net Margin 1.5%
Return on Equity (ROE) 10.8%
Return on Assets (ROA) 2.5%

Cash Flow & Balance Sheet

Operating Cash Flow-$598,739
Free Cash Flow-$2M
Total Debt$71M
Debt-to-Equity184.8
Current Ratio1.2
Total Assets$158M

Price & Trading

Last Close$2.18
50-Day MA$2.89
200-Day MA$3.27
Avg Volume9K
Beta0.1
52-Week Range
$2.10
$4.32

About Tokyo Lifestyle Co., Ltd. (TKLF)

CEO
Mr. Mei Kanayama
Employees
130
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
Japan
Exchange
NASDAQ
Market Cap
$9M
Currency
USD

Tokyo Lifestyle Co., Ltd. engages in the retail and wholesale of beauty, health, sundry, and other products in Japan, China, Hong Kong, the United States, Canada, Thailand, and the United Kingdom. The company sells its products under its flagship brand, Tokyo Lifestyle. It offers cosmetics comprising foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care, consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, including brush, puff, curler, hair iron, and shaver products. The company also provides shampoo, conditioner, and body wash; fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for baby and children. Further, the company offers OTC drugs for the treatment of colds, headaches, stomach pain, cough, and eye strains, and others, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath, home décor, dining and tabletop, storage containers, car supplies, cleaning agent, and laundry supplies; spa supplies, clothing, formula milk, and diapers; and food, alcoholic beverages, and miscellaneous products. It also offers branded watches, perfumes, handbags, clothes, and jewelries, as well as Nintendo switch and Xbox series products. The company was formerly known as Yoshitsu Co., Ltd and changed its name to Tokyo Lifestyle Co., Ltd. in October 2024. Tokyo Lifestyle Co., Ltd. was incorporated in 2006 and is headquartered in Tokyo, Japan.

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Frequently Asked Questions

Is Tokyo Lifestyle Co., Ltd. (TKLF) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tokyo Lifestyle Co., Ltd. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Tokyo Lifestyle Co., Ltd.'s debt ratio?

Tokyo Lifestyle Co., Ltd.'s debt ratio is 594.2% 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 45.3%.

What are Tokyo Lifestyle Co., Ltd.'s key financial metrics?

Tokyo Lifestyle Co., Ltd. has a market capitalization of $9M, trailing P/E ratio of 2.0, and revenue of $210M. The company maintains a gross margin of 9.1% and a net margin of 1.5%. Return on equity stands at 10.8%.

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.