The Short Answer
Nova stock (NVMI) is qualitatively halal, but the current quantitative screen fails. The December 31, 2025 filing puts liquidity at 69.72% of assets and disclosed interest income at 5.19% of revenue, above the examined limits.
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.
Designing and selling semiconductor metrology equipment is generally permissible. Nova carries convertible-note debt and a large deposit and marketable-securities portfolio; disclosed interest income is 5.19% of fiscal-year revenue. No universal prohibited-revenue numerator is disclosed.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Nova's Business Activity
Nova makes metrology and process-control systems for chipmakers. Its products include:
- Dimensional metrology: Tools that measure chip structures
- Materials & chemical metrology: Systems that monitor film and material properties
- Metrology software: Analytics for process control
Designing and selling these metrology systems is permissible at the activity level — they are general-purpose semiconductor-manufacturing equipment.
Concerns to Be Aware Of
1. Interest Income on Cash
Nova holds a substantial cash and investments balance that generates interest income. Verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of returns.
2. Debt Ratio
Nova typically operates debt-free with a net-cash position. Confirm the debt-to-market-cap ratio against the 33% threshold at the time of investment.
3. Cyclicality
As a semiconductor metrology-equipment company, revenue is cyclical and tied to chip-industry capital spending. This is a business and valuation consideration rather than a Sharia screen concern.
Filing-Based Ratios (December 31, 2025)
Based on Nova's Form 20-F:
- Debt / Assets: 31.00%
- Cash + interest-bearing securities / Assets: 69.72%
- Receivables + cash / Assets: 15.52%
- Disclosed interest income / Revenue: 5.19%
Methodology Interpretation
FTSE fails on liquidity and its 5% income threshold; MSCI and Malaysia fail on liquidity. The metrology business is generally permissible, but activity and prohibited-revenue classification remain qualitative; this is not a universal certification.
Bottom Line
Nova (NVMI) has a generally permissible metrology business, but the current overall result fails the examined financial screens because liquidity is 69.72% of assets and disclosed interest income is 5.19% of revenue. Investors should apply their chosen methodology, review the convertible notes and investment portfolio, and use their own purification policy.
For Muslim investors seeking semiconductor-equipment exposure, NVMI sits alongside other halal-screened names like Camtek (CAMT) and FormFactor (FORM).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →