Is Unilever (ULVR) Halal?

LSE Consumer Defensive United Kingdom $97.9B
✓ HALAL
Confidence: 95/100
Unilever (ULVR) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 28.4% against the AAOIFI threshold of 30%, Unilever comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Household & Personal Products), 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 28.4%
/ 30%
7.1%
/ 30%
3.9%
/ 30%
0.72%
/ 5%
✓ HALAL
DJIM 28.4%
/ 33%
7.1%
/ 33%
3.9%
/ 33%
0.72%
/ 5%
✓ HALAL
MSCI 38.4%
/ 33%
9.6%
/ 33%
5.3%
/ 33%
0.72%
/ 5%
✗ NOT HALAL
S&P 28.4%
/ 33%
7.1%
/ 33%
3.9%
/ 33%
0.72%
/ 5%
✓ HALAL
FTSE 38.4%
/ 33%
9.6%
/ 33%
5.3%
/ 50%
0.72%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
20.0
Forward: 15.2
EPS
$2.24
Dividend Yield
385.0%
Payout: 79.0%
P/B Ratio
722.4
EV/EBITDA
11.3
EV: $123.0B
Revenue
$50.5B
Beta
0.3
Low volatility
Current Ratio
0.8

Profitability

Gross Margin 46.9%
Operating Margin 20.1%
Net Margin 18.7%
Return on Equity (ROE) 31.0%
Return on Assets (ROA) 8.4%

Cash Flow & Balance Sheet

Operating Cash Flow$8.3B
Free Cash Flow$6.8B
Total Debt$27.6B
Debt-to-Equity160.8
Current Ratio0.8
Total Assets$70.5B

Price & Trading

Last CloseGBp 4,485.00
50-Day MAGBp 5,013.60
200-Day MAGBp 4,883.81
Avg Volume3.9M
Beta0.3
52-Week Range
GBp 4,452.00
GBp 5,542.11

About Unilever (ULVR)

CEO
Mr. Fernando Fernandez
Employees
93,731
Sector
Consumer Defensive
Industry
Household & Personal Products
Country
United Kingdom
Exchange
LSE
Market Cap
$97.9B
Currency
GBp

Unilever PLC operates as a fast-moving consumer goods company in the Asia Pacific, Africa, the Americas, and Europe. It operates through four segments: Beauty & Wellbeing, Personal Care, Home Care, and Foods. The Beauty & Wellbeing segment offers hair care, such as shampoo, conditioner, and styling; face, hand, and body moisturizer skin care products; and Prestige Beauty and Wellbeing products. The Personal Care segment provides soap and shower skin cleansing products; and deodorant and oral care, including toothpaste, toothbrush, and mouthwash products. The Home Care segment offers washing powders and liquids, and rinse conditioner fabric care products; and a range of home and hygiene cleaning products. The Foods segment provides cooking aids and mini meals comprising soups, bouillons, and seasonings, as well as mayonnaise and ketchup condiments; and Unilever food solutions. The company provides its products under the AXE, Clear, Cif, Closeup, Comfort, Dermalogica, Domestos, Dove, Dove Men+Care, Hellmann's, Horlicks, Knorr, LUX, Lifebuoy, Liquid I.V., Nexxus, Nutrafol, OMO, Pond's, Paula's Choice, Pepsodent, Radiant, Rexona, Sunlight, Sunsilk, Surf, TRESemmé, and Vaseline brand names. Unilever PLC was founded in 1860 and is headquartered in London, the United Kingdom.

Purification Calculator

As a halal stock with 0.72% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Unilever (ULVR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Unilever 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 Unilever's debt ratio?

Unilever's debt ratio is 28.4% 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 38.4%.

Does Unilever require dividend purification?

Yes, Unilever has an impermissible income ratio of 0.72%, which means 0.72% 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 Unilever's key financial metrics?

Unilever has a market capitalization of $97.9B, trailing P/E ratio of 20.0, and revenue of $50.5B. The company maintains a gross margin of 46.9% and a net margin of 18.7%. Return on equity stands at 31.0%.

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.