Is Toyota Motor Corp. TM stock Halal to invest in?

No, as of September 2026, Toyota Motor Corp. stock (TM) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. To qualify as Halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Toyota Motor Corp. currently does not meet the threshold for the non-permissible income and interest-bearing debt screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Toyota Motor Corp. and discover Shariah compliant alternatives among the Halal stocks in the Tabadulat app.

How often is Toyota Motor Corp. TM reviewed for Shariah compliance?

Tabadulat reviews Toyota Motor Corp. TM for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Toyota Motor Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Toyota Motor Corp. TM pass the AAOIFI Non Permissible Income criteria?

No, as of September 2026, Toyota Motor Corp. stock (TM) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or Riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Toyota Motor Corp.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Toyota Motor Corp. TM pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, Toyota Motor Corp. stock (TM) passes the AAOIFI interest-bearing investments screen. This screen looks at where the company parks its cash: conventional deposits, bonds, treasury bills and money-market funds all earn Riba, so AAOIFI caps them at 30% of market capitalisation. Toyota Motor Corp. stays inside that cap in the latest screening. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Toyota Motor Corp. TM pass the AAOIFI Interest Bearing Debt criteria?

No, as of September 2026, Toyota Motor Corp. stock (TM) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar Riba-based financing) must remain below 30% of its market capitalisation. Toyota Motor Corp.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on Riba-based financing beyond the level AAOIFI permits for a Halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Toyota Motor Corp. TM stock?

Toyota Motor Corp. (TM) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If Toyota Motor Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Toyota Motor Corp. TM pass the AAOIFI Preference Share screen?

Yes, as of September 2026, Toyota Motor Corp. stock (TM) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Toyota Motor Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is Toyota Motor (TM) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

Toyota Motor Corp. (TM) is not Shariah compliant in the September 2026 AAOIFI screening: it fails the non-permissible income and interest-bearing debt screens. Tabadulat re-screens TM monthly, and a stock can return to compliance when new financial reports change its ratios.

Sector:

Industrials

Industry:

Conglomerates

Employees:

441

Website:

https://www.tomaas.cz

Market cap:

$234.8B

P/E ratio:

9.0

Dividend yield:

3.45%

52-week range:

$166.10 - $248.90

Data as of:

3 September 2026

Screening history:

September 2026: FAIL

Toyota Motor is a leading global automobile manufacturer headquartered in Toyota City, Japan. Primarily engaged in the design, production, and sale of automotive vehicles, Toyota serves a wide market with a broad range of models including sedans, SUVs, trucks, and hybrid cars. Renowned for its innovation and technological advancements, Toyota pioneered the hybrid vehicle market with the introduction of the Prius, setting industry standards in sustainable and eco-friendly transportation. Before any of that matters to a Muslim investor, one question comes first: is Toyota Motor stock Halal?

Is Toyota Motor Shariah compliant?

Industrial businesses like Toyota Motor usually pass the activity screen without drama. The harder test is financial: heavy assets mean heavy financing, and AAOIFI Shariah Standard No. 21 tolerates interest bearing debt and investments only below 30% of market capitalisation, ratios that shift with every move in the share price.

Does Toyota Motor pass the business activity test?

The activity screen is only part of the picture this month: Toyota Motor currently fails the non-permissible income and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is Toyota Motor's income Halal?

No. Toyota Motor's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Toyota Motor meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?

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