Is uCloudlink Group Inc. (UCL) Halal?

NASDAQ Communication Services Hong Kong $53M
✗ NOT HALAL
Confidence: 90/100
uCloudlink Group Inc. (UCL) is Not Halal under AAOIFI Standard 21. While the debt ratio of 15.9% is acceptable, the cash and interest-bearing securities ratio of 62.3% exceeds the 30% threshold. uCloudlink Group Inc. operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 15.9%
/ 30%
62.3%
/ 30%
18.0%
/ 30%
0.25%
/ 5%
✗ NOT HALAL
DJIM 15.9%
/ 33%
62.3%
/ 33%
18.0%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
MSCI 15.2%
/ 33%
59.7%
/ 33%
17.2%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
S&P 15.9%
/ 33%
62.3%
/ 33%
18.0%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
FTSE 15.2%
/ 33%
59.7%
/ 33%
17.2%
/ 50%
0.25%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
7.0
Forward: 2.9
EPS
$0.20
P/B Ratio
1.8
EV/EBITDA
45.9
EV: $495M
Revenue
$92M
Growth: -14.6%
Beta
4.7
High volatility
Current Ratio
1.7

Profitability

Gross Margin 52.4%
Operating Margin -7.3%
Net Margin 7.7%
Return on Equity (ROE) 25.0%
Return on Assets (ROA) 7.5%

Cash Flow & Balance Sheet

Operating Cash Flow$9M
Free Cash Flow$5M
Total Debt$10M
Debt-to-Equity31.2
Current Ratio1.7
Total Assets$65M

Price & Trading

Last Close$1.38
50-Day MA$1.60
200-Day MA$2.14
Avg Volume10K
Beta4.7
52-Week Range
$0.80
$4.19

About uCloudlink Group Inc. (UCL)

CEO
Mr. Chaohui Chen
Sector
Communication Services
Industry
Telecom Services
Country
Hong Kong
Exchange
NASDAQ
Market Cap
$53M
Currency
USD

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. The company was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

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Frequently Asked Questions

Is uCloudlink Group Inc. (UCL) halal to invest in?

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

uCloudlink Group Inc.'s debt ratio is 15.9% 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 15.2%.

What are uCloudlink Group Inc.'s key financial metrics?

uCloudlink Group Inc. has a market capitalization of $53M, trailing P/E ratio of 7.0, and revenue of $92M. The company maintains a gross margin of 52.4% and a net margin of 7.7%. Return on equity stands at 25.0%.

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.