Is Ulta Beauty, Inc. (ULTA) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.6% / 30% | 2.4% / 30% | 0.8% / 30% | 0.13% / 5% | ✓ HALAL |
| DJIM | 6.6% / 33% | 2.4% / 33% | 0.8% / 33% | 0.13% / 5% | ✓ HALAL |
| MSCI | 32.0% / 33% | 11.7% / 33% | 3.7% / 33% | 0.13% / 5% | ✓ HALAL |
| S&P | 6.6% / 33% | 2.4% / 33% | 0.8% / 33% | 0.13% / 5% | ✓ HALAL |
| FTSE | 32.0% / 33% | 11.7% / 33% | 3.7% / 50% | 0.13% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 43.0% | |
| Operating Margin | 12.2% | |
| Net Margin | 9.3% | |
| Return on Equity (ROE) | 43.6% | |
| Return on Assets (ROA) | 14.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.3B |
| Free Cash Flow | $964M |
| Total Debt | $1.9B |
| Debt-to-Equity | 77.8 |
| Current Ratio | 1.4 |
| Total Assets | $6.0B |
Price & Trading
| Last Close | $521.64 |
| 50-Day MA | $637.93 |
| 200-Day MA | $558.95 |
| Avg Volume | 635K |
| Beta | 0.8 |
|
52-Week Range
$323.37
| |
About Ulta Beauty, Inc. (ULTA)
Ulta Beauty, Inc. operates as a specialty beauty retailer in the United States, Mexico, and Kuwait. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications. It also provides wellness products. The company was formerly known as ULTA Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was incorporated in 1990 and is based in Bolingbrook, Illinois.
Purification Calculator
As a halal stock with 0.13% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Ulta Beauty, Inc. (ULTA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Ulta Beauty, 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 Ulta Beauty, Inc.'s debt ratio?
Ulta Beauty, 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 32.0%.
Does Ulta Beauty, Inc. require dividend purification?
Yes, Ulta Beauty, Inc. has an impermissible income ratio of 0.13%, which means 0.13% 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 Ulta Beauty, Inc.'s key financial metrics?
Ulta Beauty, Inc. has a market capitalization of $22.6B, trailing P/E ratio of 19.9, and revenue of $11.3B. The company maintains a gross margin of 43.0% and a net margin of 9.3%. Return on equity stands at 43.6%.
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.