Komatsu Ltd.

KMTUY: Is Komatsu Ltd. Halal?

Komatsu Ltd.

OTCIndustrialsJP

$39.81

+0.84%

Market Cap: 35.9B

Compliance Status

Halal

Screened on Jul 24, 2026 · AAOIFI Standard 21

B+

Good

71Score

Is Komatsu Ltd. (KMTUY) halal? Halal. Based on AAOIFI screening, Komatsu Ltd. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 71/100 (Grade: B+).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

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

23.8% of 30.0% limit

What this means for you

You can own KMTUY

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

No purification owed

Based on the latest screening, none of its income comes from prohibited sources.

About Komatsu Ltd.

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment in Japan, the Americas, Europe, China, rest of Asia, Oceania, the Middle East, Africa, and CIS countries. It operates in three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. The company offers construction and mining equipment, including excavators, hydraulic and mini excavators, wheel loaders, bulldozers, motor graders, dump trucks, backhoe loaders, rope and hybrid shovels, electric wheel loaders, continuous miners, and jumbo and blasthole drills. It also provides demolition, waste, and recycling equipment, such as mobile crushers and mini shovels; agricultural and livestock equipment; forestry equipment, including harvesters, forwarders, feller bunchers, log loaders, tree planters, and forklifts; quarry equipment; material handling equipment; and shield and tunnel-boring machines, pipe layers, towing tractors, and engines. In addition, the company offers industrial machinery, including presses, sheet-metal machinery, 3D laser cutting machines, transfer machines, battery manufacturing equipment, wire saws, thermos modules, thermoelectric generation modules/EH sensor devices, and temperature control products; crawler carriers; iron and steel castings; shearers; mobile soil recyclers and tub grinders; railroad maintenance equipment; engines and components, such as diesel engines, diesel generator sets, hydraulic equipment, and batteries; and logistics equipment. Further, the company engages in the provision of retail financing; construction machinery rental; transportation, warehousing, packing, and other services; development, manufacture, sale, and service of excimer laser used for lithography tools in semiconductor manufacturing; and purchase and sale of used equipment. Komatsu Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

Sector: Industrials · Industry: Industrial - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 24, 2026

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

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

Fiscal: FY 2026Data source: FMP-ADR
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Frequently Asked Questions

Is Komatsu Ltd. (KMTUY) halal to invest in?
Based on AAOIFI Standard 21 screening, Komatsu Ltd. (KMTUY) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Komatsu Ltd. get a B+ compliance rating?
Komatsu Ltd. (KMTUY) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 23.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Komatsu Ltd.'s Shariah verdict?
Komatsu 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 Komatsu Ltd. re-screened for Shariah compliance?
Komatsu Ltd. (KMTUY) 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 24, 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.