Assalamualikum,
Just wondering, if anyone has the experience with an App called Islamicly - Find Halal Stocks? Can I rely on them in terms of halal stock screening and dividend purify? Zazak Allah
Wa alaykum salaam,
Yes, you can rely upon them as the source of information they receive is authentic.
ZazakAllah for your reply brother
Assalamu alaikum @Mufti_Faraz_Adam / @Mufti_Billal,
Is it possible that apps like Islamicly can show different compliancy results?
I have bought a share last year (TRVG - Trivago). When i checked for screening in Islamicly It is failing in “Cash Compliance” check. However, when tried to screen it manually by reading IFG stock screeing guide with 5 key criteria. I don’t see any non-compliancy. Below are the results for my manual screening (For 2019 Annual Report from marketwatch.com)
-
Business Criteria: (Result: Compliant)
-
Income from non-compliant source: (Result: Compliant)
Non-Operating Interest Income (0) / Total Revenue (938 M) = 0%
- Interest bearing debt to Total Assets Ration: (Result: Compliant)
Interest-bearing debt = (Short Term + Long term) = 5.65 + 106.26 = 112 M
Total Assets = 1.28 B
Interest-bearing/Total Assets = 112/1280 = 8.75 % (<33%)
- Illiquid assets to total assets ratio: (Result: Compliant)
Net Property, Plant & Equipment: 145 M
Intangible Assets: Net Goodwill + Net Other Intangibles = 550.69M + 190.74M = 741.43 M
Total Illiquid Assets = 886.43 M
Total Assets = 1.28 B
Illiquid Assets/Total Assets = 886.43 / 1280 = 69.2% (>20%)
- Net liquid assets v market capitalisation: (Result: Compliant)
Liquid Assets = Cash + Receivables = 256 M + 86 M = 342 M
Market Cap (as of 31 dec 2019 because i am taking 2019 annual report): 930 M
Liquid Assets < Market Cap
This was my analysis. Please tell me if I am doing it right or not. If not what is causing Islamicly app to show the non-compliant result?
Can I go ahead with my analysis by assuring it is shariah compliant?
Wa alaykum salaam,
As a starting point, I would contact Islamicly with your breakdown to understand how they’ve worked it out. Then we can review it Insha’Allah.
This is thorough analysis of a stock. They should have commented on these figures. I have contacted Islamicly for other stocks and they have not responded so far.