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).

Honda Motor Co., Ltd.

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

Not Halal

Honda Motor Co., Ltd.

NYSEConsumer CyclicalJP

$26.19

+0.91%

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Life Creation and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Life Creation and Other Businesses segment manufactures and sells power products, such as general purpose engines, generators, water pumps, lawn mowers, riding mowers, robotic mowers, brush cutters, tillers, snow blowers, outboard marine engines, walking assist devices, and portable battery inverter power sources. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Sector: Consumer Cyclical 路 Industry: Auto - Manufacturers

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 17, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

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

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap38860.1% / 30.0%

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.

Screened: Jun 17, 2026Fiscal: FY 2026Source: FMP

Financial Overview

Market Cap

34.0B

Price

$26.19

Sector

Consumer Cyclical

Industry

Auto - Manufacturers

Halal Alternatives in Consumer Cyclical

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

Marriott International, Inc.
MARA+

Marriott International, Inc.

$394.61

-0.28%

Rollins, Inc.
ROLA+

Rollins, Inc.

$46.79

-0.23%

Tractor Supply Company
TSCOA+

Tractor Supply Company

$29.78

+1.40%

Gentex Corporation
GNTXA+

Gentex Corporation

$24.63

+2.28%

Modine Manufacturing Company
MODA+

Modine Manufacturing Company

$275.23

-0.46%

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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 38860.1% (limit 30%); interest-bearing deposits of 14606.8% (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: Jun 17, 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.