Is Illumina Stock Halal?
How much of Illumina’s revenue comes from haram?
Illumina earns its revenue from the following revenue sources:
- Product Revenue:
Illumina provides instruments and consumables for genomic analysis to genomic research centers, academic institutions, government laboratories, hospitals, and companies in the healthcare field.
- Service and Other Revenue:
Includes revenue earned from genotyping and sequencing services, instrument service contracts, and development and licensing agreements.
The contributions from each of Illumina’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Illumina’s revenue comes from anything inherently haram.
Does Illumina rely on interest to operate?
According to the company’s annual report for the fiscal year ended January 3, 2021 (Numbers in thousands, U.S. dollars):
Interest Income: $41,000
Total Revenue: $3,239,000
Interest Expense: $49,000
Total Expenses: $2,659,000
Interest Income / Revenue: 1.27%
Interest Expense / Total Expense: 1.84%
Practical Islamic Finance concludes:
Riba is used but not relied upon in Illumina’s operations.
What is Illumina’s Environmental, Social, and Governance (ESG) impact?
Environment
In 2020, Illumina increased its use of renewable energy from solar by 113% from 2019.
Social
In response to Covid-19, Illumina donated PPE equipment, including plexiglass shields 3D printed by Illumina’s employees, and hand sanitizers to frontline healthcare workers.
Illumina donated a total of $10.5 million in products, direct grants, and employee giving and matched contributions to support Covid-19 relief efforts.
In addition, Illumina has a high Glassdoor rating of 4.0 out of 5.0 from over 1,400 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Illumina has a net positive ESG impact.
Comfort Rating
From Illumina’s business, financial, and ESG reviews, Practical Islamic Finance rates Illumina stock as: