NVMI

Nova Ltd.

HALAL — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
31.00%Within limit
Below 33.333% under FTSE Yasaar

731.68 / 2,360.546

Cash + interest-bearing securities / assets
69.72%Above limit
Below 33.333% under FTSE Yasaar

1,645.749 / 2,360.546

Receivables + cash / assets
15.52%Within limit
Below 50% under FTSE Yasaar

366.391 / 2,360.546

Non-compliant income / revenue
5.19%Above limit
No more than 5% under FTSE Yasaar

45.672 / 880.577

FTSE Yasaar
v4.6, February 2026
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.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 69.72%, above the examined MSCI total-assets limit; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 69.72%, above the examined Malaysia limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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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