NYSE Shariah screener · October 2026

Is Toyota Motor Corporation (TM) Halal?

Toyota Motor Corporation · NYSE: TM · Consumer Discretionary

The short answer

No - Toyota Motor Corporation (TM) fails this Shariah stock screen at the first two gates. Toyota, the Japanese automaker, reports three segments - Automotive, Financial Services, and All Other. Toyota Financial Services is an interest-based auto-lending business (retail and wholesale financing, leasing, insurance, credit cards) generating 9.5% of FY2026 revenue with a loan and lease book of about 39 trillion yen - an interest-based core segment well above the 5% business threshold. Interest-bearing debt of about 43.2 trillion yen is about 114.7% of its ~$238.7B market cap ($183.10/ADR, October 1, 2026), far above the ~33% ceiling. The one passing gate: interest income of 311,519 million yen is about 0.61% of FY2026 revenue (50,684,952 million yen), below the 5% ceiling. Zoya independently flags TM as not Shariah-compliant. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

Gate 1 — Business activity: FAIL

Toyota Motor Corporation (NYSE: TM), headquartered in Toyota City, Japan, designs, manufactures, and sells passenger cars, SUVs, trucks, and buses under the Toyota and Lexus brands. Per its Form 20-F for the fiscal year ended March 31, 2026 (filed June 10, 2026; Commission File No. 001-14948), it reports three segments: Automotive, Financial Services, and All Other (including prefabricated housing). Toyota Financial Services is an interest-based auto-lending business - retail financing and leasing, wholesale financing, insurance, and credit cards - with FY2026 sales revenues of 4,819,003 million yen of 50,684,952 million yen total = 9.5% of total revenue, and finance receivables of 13,478,474 million yen (current) plus 25,488,182 million yen (noncurrent) = a 38.97 trillion yen loan and lease book. Business-screen implication (factual): interest-based lending is a core segment at 9.5% of revenue - well above the 5% AAOIFI business threshold. No alcohol, gambling, pork, or weapons revenue was identified. Gate 1 fails. Facts only.

Gate 2 — Debt and cash: FAIL

Per Toyota's Form 20-F for the fiscal year ended March 31, 2026 (IFRS; yen in millions), interest-bearing debt was 17,581,104 million yen (short-term and current portion of long-term debt) plus 25,624,365 million yen (long-term debt) = 43,205,469 million yen, about $273.8B at 157.81 yen per dollar. Against a market cap of about $238.7B (13,033,931,974 common shares outstanding x $18.31 per share - the $183.10 ADR close on October 1, 2026 divided by 10 shares per ADS), debt / market cap is about 114.7% - far above the ~33% ceiling. Cash and cash equivalents were 12,659,622 million yen at March 31, 2026. Gate 2 fails. Facts only.

Gate 3 — Non-compliant income: PASS

Toyota's FY2026 Form 20-F, Note 29 'Other finance income', discloses interest income of 203,976 million yen (amortized-cost assets) plus 107,543 million yen (FVOCI assets) = 311,519 million yen. Against total sales revenues of 50,684,952 million yen, that is about 0.61% of revenue - below the 5% non-compliant income ceiling. Note: interest income embedded within financial-services revenue is not separately disclosed (the 20-F states non-lease financial-service revenues 'mainly consist of interest income' but 'the amount of such interest income is not significant'). Gate 3 passes. Facts only.

Key figures used

• Business: three segments - Automotive (Toyota/Lexus cars, SUVs, trucks, buses; hybrids, fuel-cell, BEVs), Financial Services, All Other (prefabricated housing); HQ Toyota City, Japan
• Financial Services: interest-based auto lending (retail/wholesale financing, leasing, insurance, credit cards) - FY2026 sales revenues 4,819,003M yen = 9.5% of 50,684,952M yen total; finance receivables 38.97T yen
• FY2026 (year ended Mar 31, 2026): total sales revenues 50,684,952M yen; operating income 3,766,216M yen; net income 3,985,761M yen
• Debt: 43,205,469M yen interest-bearing (short-term 17,581,104M + long-term 25,624,365M yen, FY2026 20-F) - about 114.7% of ~$238.7B market cap (13,033,931,974 shares x $18.31, Oct 1, 2026), far above the ~33% ceiling
• Cash: 12,659,622M yen cash and cash equivalents at March 31, 2026
• Interest income: 311,519M yen (Note 29: 203,976M + 107,543M) - about 0.61% of 50,684,952M yen revenue, below the 5% ceiling
• Third-party screeners: Zoya flags TM not Shariah-compliant; Musaffa - no TM page found; ShariaPortfolio - no TM rating (its methodology screens out >5% interest-based business income)
• Material: Hino Motors ceased to be a consolidated subsidiary Apr 1, 2026 (merged with Mitsubishi Fuso under ARCHION; Toyota retains ~25% stake); Toyota Industries going private (tender offer 3,067 yen/share); P/E ~8.4, dividend yield ~3.3%
• Listing: NYSE-listed ADR (ticker TM, 1 ADS = 10 common shares), confirmed by 20-F cover page and live quotes Oct 1-2, 2026 - no delisting

Frequently asked questions

Sources

• Toyota Form 20-F for fiscal year ended March 31, 2026 (filed June 10, 2026; Commission File No. 001-14948): cover (American Depositary Shares - Trading Symbol: TM - The New York Stock Exchange; 1 ADS = 10 common shares); balance sheet - interest-bearing debt 43,205,469M yen, cash 12,659,622M yen, 13,033,931,974 common shares outstanding; income statement - total sales revenues 50,684,952M yen, financial services revenues 4,819,003M yen; Note 29 - interest income 311,519M yen
• Zoya Toyota stock page (2026): flags TM as not Shariah-compliant ('dividends from TM are not considered halal because the stock is currently not Shariah-compliant')
• Finnhub TM live market data (Oct 2, 2026): NYSE (XNYS), price ~$183.34 - live quote, no delisting

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).