Is United Tractors (UNTR) Halal?

JKT Basic Materials Indonesia $111.1T
✓ HALAL
Confidence: 95/100
United Tractors (UNTR) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 18.7% against the AAOIFI threshold of 30%, United Tractors comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Other Industrial Metals & Mining), 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 18.7%
/ 30%
21.3%
/ 30%
18.5%
/ 30%
0.86%
/ 5%
✓ HALAL
DJIM 18.7%
/ 33%
21.3%
/ 33%
18.5%
/ 33%
0.86%
/ 5%
✓ HALAL
MSCI 11.9%
/ 33%
13.6%
/ 33%
11.8%
/ 33%
0.86%
/ 5%
✓ HALAL
S&P 18.7%
/ 33%
21.3%
/ 33%
18.5%
/ 33%
0.86%
/ 5%
✓ HALAL
FTSE 11.9%
/ 33%
13.6%
/ 33%
11.8%
/ 50%
0.86%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
7.5
Forward: 6.2
EPS
$4,082.04
Dividend Yield
670.0%
Payout: 50.2%
P/B Ratio
1.1
EV/EBITDA
3.2
EV: $107.0T
Revenue
$131.3T
Growth: -11.6%
Beta
-0.1
Low volatility
Current Ratio
1.4

Profitability

Gross Margin 22.6%
Operating Margin 14.8%
Net Margin 11.3%
Return on Equity (ROE) 15.1%
Return on Assets (ROA) 7.9%

Cash Flow & Balance Sheet

Free Cash Flow$13.0T
Total Debt$18.9T
Debt-to-Equity18.3
Current Ratio1.4
Total Assets$177.6T

Price & Trading

Last CloseIDR 30,800.00
50-Day MAIDR 28,886.50
200-Day MAIDR 26,835.25
Avg Volume7.2M
Beta-0.1
52-Week Range
IDR 20,025.00
IDR 32,000.00

About United Tractors (UNTR)

CEO
Engineer Franciscus Xaverius Laksana Kesuma M.Sc.
Employees
38,775
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Country
Indonesia
Exchange
JKT
Market Cap
$111.1T
Currency
IDR

PT United Tractors Tbk, together with its subsidiaries, provides coal mining services in Indonesia. The company operates in five segments: Construction Machinery, Mining Contracting, Thermal and Metallurgical Coal Mining, Gold and Other Mineral Mining, and Other segments. It also distributes heavy equipment, trucks, cranes, and buses under the Komatsu, UD Trucks, Scania, Bomag, Tadano, and United Tractors names for mining, agriculture, construction, forestry, material handling, and transportation applications; and offers after sale services. In addition, it sells and leases farm tractors, generators, forklifts, and mini excavators, as well as sells commodity parts. Further, the company offers mining services that supports coal companies, such as mining design and implementation, initial assessment and feasibility study, mining infrastructure and facilities development, land removal and waste management, production and transportation of mining materials, expansion of mine/facility, reclamation and re-vegetation, and shipping and marketing; and technical and construction services for building, civil, and maritime work, as well as owns interests in various coal mine concessions. Additionally, it engages in the engineering, planning, assembling, and manufacturing components of machinery, tools, parts, and heavy equipment; provision of vessel construction and related repair services; provision of vessel charter and shipping; exploration, mining, and mineral processing of gold and silver; ship manufacturing, construction, and repair business; fishery business; remanufacturing of heavy equipment components; operating hydro and solar power plants; and trading and rental of used heavy equipment, as well as trades in spare parts. The company was founded in 1972 and is headquartered in Jakarta Timur, Indonesia. PT United Tractors Tbk is a subsidiary of PT Astra International Tbk.

Purification Calculator

As a halal stock with 0.86% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Basic Materials

Frequently Asked Questions

Is United Tractors (UNTR) halal to invest in?

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

United Tractors's debt ratio is 18.7% 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 11.9%.

Does United Tractors require dividend purification?

Yes, United Tractors has an impermissible income ratio of 0.86%, which means 0.86% 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 United Tractors's key financial metrics?

United Tractors has a market capitalization of $111.1T, trailing P/E ratio of 7.5, and revenue of $131.3T. The company maintains a gross margin of 22.6% and a net margin of 11.3%. Return on equity stands at 15.1%.

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.