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 70/100 (Grade: B+).

Komatsu Ltd.

KMTUY: Is Komatsu Ltd. Halal?

Halal

Komatsu Ltd.

OTCIndustrialsJP

$40.89

+1.36%

About Komatsu Ltd.

Komatsu Ltd. is a leading global manufacturer and distributor of heavy equipment for the construction, mining, and utility sectors, as well as machinery for forestry and various industrial applications. The company鈥檚 operations are structured across three distinct divisions: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. Within its core heavy equipment offerings, Komatsu provides an extensive range of construction and mining vehicles, including powerful rope shovels, continuous miners, hydraulic excavators, wheel loaders, bulldozers, motor graders, and large-capacity dump trucks. Its portfolio also encompasses smaller utility equipment like mini excavators and other specialized mining apparatus. Beyond this, the company supplies a variety of forklift trucks and a full suite of forestry equipment, such as harvesters, forwarders, and feller bunchers. For demolition, waste management, and recycling projects, Komatsu offers mobile crushers, specific hydraulic excavators, wheel loaders, and mini shovels. Furthermore, its specialized engineering solutions extend to tunnel-boring machines, pipe layers, towing tractors, and a range of engines. In the industrial domain, Komatsu manufactures advanced metal forming and stamping presses, including large-scale systems, alongside sophisticated sheet-metal processing machinery like fiber laser cutting machines. Its precision machine tools feature transfer machines, logistics equipment, and highly specialized components crucial for semiconductor fabrication, such as lithography light sources and temperature-control systems. The company also produces battery manufacturing equipment, wire saws, and thermoelectric modules. Beyond manufacturing, Komatsu provides a comprehensive array of support services. These include retail financing options for its construction and mining equipment, rental services for construction machinery, and the supply of remanufactured products. It also offers various auxiliary support services and facilitates the buying and selling of used equipment. Komatsu Ltd. was established in 1884 and maintains its headquarters in Tokyo, Japan.

Sector: Industrials 路 Industry: Agricultural - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 11, 2026
B+

Good

Good compliance with minor concerns

70Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap24.7% / 30.0%

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.

Screened: Jun 11, 2026Fiscal: FY 2026Source: FMP-ADR

Purify Your KMTUY Dividends

0.6% non-compliant income

KMTUY has 0.6% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

36.5B

Price

$40.89

Sector

Industrials

Industry

Agricultural - Machinery

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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 24.7% (limit 30%); interest-bearing deposits of 7.7% (limit 30%); prohibited income of 0.60% (limit 5%). 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: Jun 11, 2026.

Screened according to AAOIFI Standard No. 21 路 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.