What is Honda Motor Co., Ltd.'s Shariah compliance score?

Honda Motor Co., Ltd.'s (HMC) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Honda Motor Co., Ltd. pass AAOIFI screening?

Honda Motor Co., Ltd. (HMC) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (HMC: 232.6%), (3) interest-bearing deposits below 30% (HMC: 87.4%), and (4) prohibited income below 5% (HMC: 0.8%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Honda Motor Co., Ltd. stock?

Honda Motor Co., Ltd. (HMC) has a non-permissible income ratio of 0.82%. Muslim investors should purify this percentage of any dividends received and capital gains realized from HMC shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Honda Motor Co., Ltd. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Honda Motor Co., Ltd. (HMC) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about HMC's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

HMC: Is Honda Motor Co., Ltd. Halal?

Honda Motor Co., Ltd.

NYSEConsumer CyclicalJP

$28.77

+1.23%

Market Cap: 37.3B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Honda Motor Co., Ltd. (HMC) halal? Not Halal. Based on AAOIFI screening, Honda Motor Co., Ltd. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

232.6% of 30.0% limit

What this means for you

Most scholars advise not holding HMC

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. is a global enterprise that designs, manufactures, and markets a diverse array of products, primarily motorcycles, automobiles, and power equipment, reaching customers across Japan, North America, Europe, Asia, and other international markets. The company's operations are divided into four main business segments: Motorcycle, Automobile, Financial Services, and Life Creation and Other Businesses. Its Motorcycle segment produces a variety of two-wheeled vehicles, ranging from sporty models and utility-oriented business and commuter bikes to specialized off-road vehicles like all-terrain vehicles (ATVs) and side-by-sides. The Automobile segment provides a selection of passenger cars, light-duty trucks, and compact mini-vehicles. Through its Financial Services division, Honda offers various financial solutions, including retail lending and leasing directly to consumers, as well as wholesale financing for its dealer network. The Life Creation and Other Businesses segment is responsible for manufacturing and selling an extensive catalog of power products. This includes general-purpose engines, generators, water pumps, different types of lawn mowers (including robotic models), brush cutters, tillers, snow blowers, and outboard marine engines. This segment also ventures into innovative products such as walking assist devices and portable battery inverter power sources, and notably, it manufactures HondaJet aircraft. In addition to its core product lines, Honda supplies spare parts and delivers comprehensive after-sale services. These are provided through a network comprising direct retail dealers, independent distributors, and licensed partners. Established in 1946, Honda Motor Co., Ltd. has its corporate headquarters situated in Tokyo, Japan.

Sector: Consumer Cyclical · Industry: Auto - Manufacturers

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2026Data source: FMP-ADR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

MARA+

Marriott International, Inc.

$366.24

-0.85%

FWDIA+

Forward Industries, Inc.

$3.96

+11.86%

ROLA+

Rollins, Inc.

$44.77

-0.40%

TSCOA+

Tractor Supply Company

$30.24

+1.65%

GNTXA+

Gentex Corporation

$24.35

-2.25%

More Consumer Cyclical Stocks

AMZN

Amazon.com, Inc.

A+

TSLA

Tesla, Inc.

The Home Depot, Inc.

MCD

McDonald's Corporation

B+

BKNG

Booking Holdings Inc.

LOW

Lowe's Companies, Inc.

Free · No credit card required

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Frequently Asked Questions

Is Honda Motor Co., Ltd. (HMC) halal to invest in?

Honda Motor Co., Ltd. (HMC) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Honda Motor Co., Ltd. get a F compliance rating?

Honda Motor Co., Ltd. (HMC) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 232.6% (limit 30%); interest-bearing deposits of 87.4% (limit 30%); prohibited income of 0.82% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Honda Motor Co., Ltd.'s Shariah verdict?

Honda Motor Co., Ltd.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Honda Motor Co., Ltd. re-screened for Shariah compliance?

Honda Motor Co., Ltd. (HMC) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.