Is YELP INC (YELP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.6% / 30% | 21.5% / 30% | 10.2% / 30% | 0.39% / 5% | ✓ HALAL |
| DJIM | 1.6% / 33% | 21.5% / 33% | 10.2% / 33% | 0.39% / 5% | ✓ HALAL |
| MSCI | 2.6% / 33% | 33.8% / 33% | 16.0% / 33% | 0.39% / 5% | ✗ NOT HALAL |
| S&P | 1.6% / 33% | 21.5% / 33% | 10.2% / 33% | 0.39% / 5% | ✓ HALAL |
| FTSE | 2.6% / 33% | 33.8% / 33% | 16.0% / 50% | 0.39% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 90.3% | |
| Operating Margin | 13.1% | |
| Net Margin | 9.9% | |
| Return on Equity (ROE) | 20.0% | |
| Return on Assets (ROA) | 12.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $372M |
| Free Cash Flow | $324M |
| Total Debt | $25M |
| Debt-to-Equity | 3.5 |
| Current Ratio | 3.0 |
| Total Assets | $958M |
Price & Trading
| Last Close | $24.75 |
| 50-Day MA | $24.47 |
| 200-Day MA | $30.10 |
| Avg Volume | 1.4M |
| Beta | 0.6 |
|
52-Week Range
$19.60
| |
About YELP INC (YELP)
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. Its platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, RepairPal network, and business listing pages. The company also offers Yelp Connect that provides advertisers with a channel to market new offerings, such as new menu items and specials, and communicate business updates to customers; Yelp Guaranteed that provides limited coverage to consumers who hire a yelp guaranteed business through request-a-quote in the event; Nearby Jobs solutions; Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife, and certain other venues, which include online reservations, a waitlist management solution, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Fusion Insights program that offers business owners local analytics and insights; and Yelp Fusion, which offers free access to basic information through publicly available APIs and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing and consumer-interactive tools. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with DOORDASH to provide consumers with a service to place food orders for pickup and delivery. The company was formerly known as Yelp! Inc. and changed its name to Yelp Inc. in November 2005. Yelp Inc. was incorporated in 2004 and is based in San Francisco, California.
Purification Calculator
As a halal stock with 0.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is YELP INC (YELP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), YELP 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 YELP INC's debt ratio?
YELP INC's debt ratio is 1.6% 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 2.6%.
Does YELP INC require dividend purification?
Yes, YELP INC has an impermissible income ratio of 0.39%, which means 0.39% 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 YELP INC's key financial metrics?
YELP INC has a market capitalization of $1.5B, trailing P/E ratio of 10.9, and revenue of $1.5B. The company maintains a gross margin of 90.3% and a net margin of 9.9%. Return on equity stands at 20.0%.
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.