Top 5 Shariah-Compliant Stocks in Germany

Analysis, Halal Investment, Market Analyses, Personal Finance |

Written by Haider Saleem
Financial and Political Analyst | LinkedIn / X

1. What Makes a Stock Halal?

To be considered halal, a company must pass two filters:

  • Business activity screen: Its core operations must avoid impermissible sectors such as alcohol, gambling, interest-based finance, or adult entertainment.
  • Financial ratio screen: relating to interest-bearing debt, securities and assets.

All five stocks below have passed Shariah screening on Musaffa.[5]

2. Why Use EPS as a Filter?

Earnings Per Share (EPS) is calculated by dividing net profit by the number of outstanding shares. It reflects how much profit each share generates, offering insight into a company’s operational efficiency.[4]

EPS is especially helpful for halal investors because:

  • It follows Shariah screening to identify strong financial performance among compliant companies.
  • It is applied after confirming Shariah compliance through business and financial filters.
  • It excludes one-off gains from interest or speculation.
  • It captures genuine profitability, which supports long-term ethical investing.
  • It allows comparison between companies once halal status is confirmed.

3. Top 5 Halal-Compliant German Stocks by EPS

All companies in this list were screened for halal compliance based on AAOIFI criteria. To maintain quality and comparability, we focused on mid-, large-, and mega-cap companies. Smaller-cap stocks were excluded because their low share counts can result in unusually high EPS figures that don’t reflect scalable profitability.

a) Rational AG (RAA.DE)

EPS (2025): €5.00
Rational AG, a leading manufacturer of cooking appliances for professional kitchens, blends German engineering with steady earnings. It’s high EPS reflects its dominant market share in commercial kitchen automation.

b) Hapag-Lloyd AG (HLAG.DE)

EPS (2025): €2.51
Hapag-Lloyd is one of the world’s largest container shipping companies. Its 2025 EPS reflects improved logistics efficiency and continued demand in key maritime trade lanes.

c) Krones AG (KRN.DE)

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EPS (2025): €2.40
Krones AG designs and manufactures bottling, packaging, and recycling equipment, serving global food and beverage markets. Krones’ EPS strength stems from automation innovations and growth in emerging markets.

d) Adidas AG (ADS.DE)

EPS (2025): €2.38
Adidas, the iconic German sportswear brand. Its 2025 EPS rebounded due to restructuring efforts and stronger performance in the European and Asia-Pacific markets.[5]

e) Merck KGaA (MRK.DE)

EPS (2025): €1.69
Merck KGaA is a global science and technology company involved in healthcare, life sciences, and electronics. It is distinct from Merck & Co. (U.S.).

4. Germany’s Brightening Market Outlook

Germany’s economic outlook remains strong despite short-term volatility driven by geopolitical tensions. As of June 2025, Germany’s DAX index has rallied 18% year-to-date, far outpacing France’s CAC 40, which has gained just 4.1%.[7] Investor morale in Germany also rose in June to 47.5, beating expectations – even as markets briefly dipped due to Israel–Iran tensions.[8]

Structural tailwinds continue to support German equities. Bloomberg forecasts DAX companies will deliver 13–15% EPS growth in H2 2025, powered by stimulus, infrastructure, and defense spending.[1] European mutual funds also recorded their highest inflows in four years as global investors rotated out of U.S. assets.[2]

Although geopolitical risks have weighed on equities recently, the broader trend points to structural investor confidence in Germany. This shift in sentiment gives halal-conscious investors reason to look beyond traditional U.S.-centric portfolios.

5. Conclusion: A European Anchor for Halal Portfolios

Germany’s renewed fiscal strength and earnings momentum, make it an increasingly relevant market for Muslim investors.

For those diversifying globally, Germany can offer industrial muscle and principled profit potential.

References

[1] Bloomberg, “Germany’s Corporate Earnings Set to Outpace US on Defense Boom”, June 6, 2025
[2] Reuters, “Investors pull out of US stocks and into Europe and emerging markets”, June 11, 2025
[3] AAOIFI, Shariah Standard No. 21: Financial Papers (Shares & Bonds)
[4] Investopedia, “Earnings Per Share (EPS)”, https://www.investopedia.com/terms/e/eps.asp
 [5] Musaffa Stock Screenings, https://musaffa.com/stocks
 [7] Bloomberg, “France Left Unloved by Investors as German Markets Power Ahead”, June 18, 2025
[8] Reuters, “European Shares Slide to Near One-Month Low on Israel–Iran Tensions”, June 17, 2025

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