NVMI
Nova Ltd.
Is NVMI Halal?
Semiconductor metrology and process-control systems — generally permissible activity, but current liquidity and income screens fail.
What You Should Know
Nova's December 31, 2025 Form 20-F reports assets of $2,360.546 million, convertible-note debt of $731.680 million, cash of $214.462 million, deposits and marketable securities of $1,431.287 million, trade receivables of $151.929 million and fiscal-year revenue of $880.577 million. Debt/assets is 31.00%, liquidity/assets is 69.72%, receivables plus cash/assets is 15.52% and disclosed interest income is 5.19% of revenue. Liquidity and the examined FTSE income screen fail; no universal prohibited-revenue numerator is disclosed.
⚠️ Concerns
- •Liquidity/assets is 69.72%, above examined FTSE, MSCI and Malaysia limits
- •Interest income is 5.19% of fiscal-year revenue, above the examined FTSE 5% limit
- •Large deposits and marketable-securities portfolio
- •2030 convertible senior notes
- •Semiconductor customer concentration and end uses require qualitative review
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-15.
731.68 / 2,360.546
1,645.749 / 2,360.546
366.391 / 2,360.546
45.672 / 880.577
- Financial
- Fails
- Overall
- Fails
Debt/assets is 31.00%, liquidity/assets is 69.72% and disclosed interest income is 5.19% of revenue, above the examined liquidity and income limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 69.72%, above the examined MSCI total-assets limit; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 69.72%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based liquidity and FTSE income screens already fail.
Business-activity disclosure
Nova supplies metrology and process-control systems, software and services to semiconductor manufacturers. The industrial technology activity is generally permissible, while customer and end-use revenue is not reduced to a universal prohibited-revenue numerator.
Limitation: The annual filing does not classify every semiconductor customer end use by a universal Sharia category; activity remains qualitative.
Purification
Nova discloses $45.672 million of interest income for fiscal 2025, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Nova's December 31, 2025 Form 20-F.
- Debt is $731.680 million net carrying value of 2030 convertible senior notes; operating lease liabilities are excluded.
- Liquidity includes $512.250 million short-term interest-bearing bank deposits, $321.798 million current marketable securities, $584.731 million noncurrent marketable securities and $12.508 million interest-bearing bank deposits and restricted cash, in addition to $214.462 million cash.
- Trade accounts receivable are $151.929 million and fiscal-year revenue is $880.577 million.
- The filing reports $45.672 million of interest income for fiscal 2025; no fixed purification percentage is prescribed.
- Semiconductor metrology and process-control systems are generally permissible, while customer end uses and geographic concentration remain qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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