Is TKO Group Holdings, Inc. (TKO) Halal?

NYSE Communication Services United States $14.9B
✓ HALAL
Confidence: 95/100
TKO Group Holdings, Inc. (TKO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 25.4% against the AAOIFI threshold of 30%, TKO Group Holdings, Inc. comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Entertainment), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 25.4%
/ 30%
5.2%
/ 30%
3.8%
/ 30%
0.54%
/ 5%
✓ HALAL
DJIM 25.4%
/ 33%
5.2%
/ 33%
3.8%
/ 33%
0.54%
/ 5%
✓ HALAL
MSCI 26.2%
/ 33%
5.4%
/ 33%
3.9%
/ 33%
0.54%
/ 5%
✓ HALAL
S&P 25.4%
/ 33%
5.2%
/ 33%
3.8%
/ 33%
0.54%
/ 5%
✓ HALAL
FTSE 26.2%
/ 33%
5.4%
/ 33%
3.9%
/ 50%
0.54%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
84.1
Forward: 50.6
EPS
$2.25
Dividend Yield
165.0%
Payout: 101.8%
P/B Ratio
3.9
EV/EBITDA
17.1
EV: $23.5B
Revenue
$4.7B
Growth: 11.9%
Beta
0.2
Low volatility
Current Ratio
1.3

Profitability

Gross Margin 59.8%
Operating Margin 9.8%
Net Margin 4.1%
Return on Equity (ROE) 5.6%
Return on Assets (ROA) 3.6%

Cash Flow & Balance Sheet

Operating Cash Flow$1.3B
Free Cash Flow$1.2B
Total Debt$4.1B
Debt-to-Equity43.9
Current Ratio1.3
Total Assets$15.5B

Price & Trading

Last Close$192.64
50-Day MA$204.88
200-Day MA$192.28
Avg Volume1.0M
Beta0.2
52-Week Range
$133.07
$226.94

About TKO Group Holdings, Inc. (TKO)

CEO
Mr. Ariel Zev Emanuel
Employees
4,000
Website
Sector
Communication Services
Industry
Entertainment
Country
United States
Exchange
NYSE
Market Cap
$14.9B
Currency
USD

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company operates through three segments: UFC, WWE and IMG. The UFC segment distributes programming content; ticket sales and site fees associated with the business's global live events; partnerships and marketing; and consumer products licensing agreements of UFC-branded products. The WWE segment consists of media rights fees associated with the distribution of its programming content; ticket sales and site fees associated with the business's global live events; partnerships and marketing; and consumer products licensing agreements of WWE-branded products. The IMG segment specializing in media rights management and sales, multi-channel content production and distribution, brand partnerships, strategic consulting, digital services, and event management. This segment also offers hospitality business, offering ticketing, curated guest experiences, live event production and travel management services. It is also involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys. In addition, the company engages in the sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of WME Group, Inc.

Purification Calculator

As a halal stock with 0.54% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is TKO Group Holdings, Inc. (TKO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TKO Group Holdings, 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 TKO Group Holdings, Inc.'s debt ratio?

TKO Group Holdings, Inc.'s debt ratio is 25.4% 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 26.2%.

Does TKO Group Holdings, Inc. require dividend purification?

Yes, TKO Group Holdings, Inc. has an impermissible income ratio of 0.54%, which means 0.54% 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 TKO Group Holdings, Inc.'s key financial metrics?

TKO Group Holdings, Inc. has a market capitalization of $14.9B, trailing P/E ratio of 84.1, and revenue of $4.7B. The company maintains a gross margin of 59.8% and a net margin of 4.1%. Return on equity stands at 5.6%.

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.