Investing in Zero Debt Companies

Does zoya have a list of stocks that carry zero debt?
I was wondering if there is a list of stocks that carry no debt at all
Not sure if such companies are publicly traded in the stock market

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Very interesting question.
And that’s a good point. With a balance sheet that strong where you don’t need debt, you might be better off remaining private as you have more control over your organization that way.

In any case, I’ve used finviz to sort companies by debt to equity ratio. Apparently there’s quite a few companies that have zero debt. Great idea btw, inshallah we’ll find some nice gems this way. :slight_smile:

You can add additional filters to screen by industry or by company size if you want.

Thanks so much for sharing finviz with me
This is helpful
I am used to fidelity software and this is new for me
I will use the debt/equity ratio option in fidelity’s stock screener
Very helpful

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Even if the company has zero debt does not mean it does not invest in Haram transactions. Like short and long term investments. How many companies have zero debt and does not invest in Haram transactions now that would be a true GEM!

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Salaam.

The Islamic Finance Guru (IFG) did a list on Debt Free stocks a while back which you can find here.

Also, this list started my quest to find awesome companies that had 0 debt which led me to amazing stocks like Intuitive Surgical (ISRG) and Abiomed (ABMD).

If you want to read more, I wrote about it in the IFG Blog. The Top 5 Debt Free Halal Stocks on the NYSE.

Take care, and excited to be on this journey of Halal, yet great investments with you guys :slight_smile:

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This is very helpful
I am trying to avoid riba as much as possible as whether 10 or 30%, it is still riba
Wish Zoya could also list zero debt companies
IFG mentions that the stocks have outperformed the SP 500

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May Allah SWT make it easy for you, InshAllah :slight_smile:

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Aoa Kashif,
Is it possible for you to recommend or share a recent list of Halal stock and halal dividend stocks already screened so i can have some diversification and still be in halal arena.
I have reviewed the list of Debt free that you mentioned above which is amazing to have 0 Debt.
JazakAllah Khair.

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Assalamu Alaikum.

Sure thing brother. I’ve created this Sheet for you with the stocks that I’m tracking, aided by the awesome Zoya app, of course :slight_smile:

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bro diffrence between sharia complaint and non sharia complaint i?

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Thank you for the list.
I would like to ask how do you view the Oil companies which are paying dividends.
CVX, XOM etc.

Also similar question for companies making semi conductors/ technology based products.
Marvel Technologies, AMD, Intel etc.

JAK

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Hi Hasnain,

This is how Zoya determines Shariah Compliance. Hope this is useful to you brother

https://help.zoya.finance/en/articles/4189798-how-do-you-determine-shariah-compliance

So, I have not explored oil companies. My industries of interest (pun intended) are:

  • Technology (Salesforce, Adobe, Shopify, Nvidia, AMD)
  • Biotech (Abiomed, Intuitive Surgical, Teledoc)
  • Transportation (Uber, Tesla, Nio)
  • Misc (AirBnB, Garmin, Monster Beverage)

With that said, I am very bullish on chip makers in the long run, InshAllah

Also, one thing that pains me is that companies like Google, Apple and Microsoft are non shariah compliant due to debt or source of revenue reasons. So we have to stay out of those growth stories for now

Assalamu Alaikum.

I was also looking for the same. I have been doing hard work searhcing it. So far I have found only one company that has literally Zero debt. That is: AXON

In Addition to Zoya app, I chcked in Balance sheet, Cashflow statement and Income statements.

I will keep searching. If you need please let me know. I will send you my list too. I am doing hardwork. May allah bless us.

My purpose is to find Zero debt stocks and this is not possible to find using Zoya search option. As Zoya follows AAOFI standards which allow upto 30% debt. And this percentage set by AAOFI is not based on any Shariah reference.

3 posts were split to a new topic: Hadith for AAOIFI’s position regarding interesting bearing debt/assets

Jazakallah brother Nazmul
Good to know about AXON
I will look into it
Please keep this thread updated with any zero debt company stocks

@saad Could Zoya please compile a list of zero debt companies
This would be a service to all and serve as a great resource

Wiyyaka brother.

I found another stock which is 0 percent debt.
It’s GitLab. Ticker GTLB.

Cathie wood has recently bought this stock. Probably she bought it as a hedge as debt free companies are less affected by increase of interest.

Currently, I am doing analysis on the potential of this companies performance. It seems trying to solve some problems in project management and coding area. However, it’s financial performance is still not that promising. According to Forbes article, it is overpriced.

UPDATE: Looks like Coursera has interest income of $320 MM. However, as their net income is negative so it is not possible to arrive in a ratio. So I compared it with the 20% of revenue replacing net income. Prohibited income/ 20% of Revenue = 0.38% which is very low compared to AAOFI allowed 5%.

Source: Yahoo Finance. Coursera, Inc. (COUR) Income Statement - Yahoo Finance


Another Zero Debt company Coursera Inc.
Stock Ticker: COUR.

Based on my analysis on Financials I did not find any debt.

COUR can be a good buy now. Currently it is underpriced (Price is $19.95 now). The price can go up to $25 to $40 in a year. The company has a very good product line and the market will keep growing.

Disclaimer: This is not a professional advice.

TradingView has many screeners: Stock Screener — Search and Filter Stocks — TradingView
Search for the debt filter and you can specify how much debt you want it to screen.
I filtered for companies with less than $50M in debt and this is the top of the list.