Is CarGurus, Inc. (CARG) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 5.9% / 30% | 5.9% / 30% | 1.3% / 30% | 1.01% / 5% | ✓ HALAL |
| DJIM | 5.9% / 33% | 5.9% / 33% | 1.3% / 33% | 1.01% / 5% | ✓ HALAL |
| MSCI | 28.8% / 33% | 28.8% / 33% | 6.3% / 33% | 1.01% / 5% | ✓ HALAL |
| S&P | 5.9% / 33% | 5.9% / 33% | 1.3% / 33% | 1.01% / 5% | ✓ HALAL |
| FTSE | 28.8% / 33% | 28.8% / 33% | 6.3% / 50% | 1.01% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 92.8% | |
| Operating Margin | 28.7% | |
| Net Margin | 17.2% | |
| Return on Equity (ROE) | 43.0% | |
| Return on Assets (ROA) | 20.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $295M |
| Free Cash Flow | $266M |
| Total Debt | $191M |
| Debt-to-Equity | 51.0 |
| Current Ratio | 2.8 |
| Total Assets | $662M |
Price & Trading
| Last Close | $35.66 |
| 50-Day MA | $31.76 |
| 200-Day MA | $34.20 |
| Avg Volume | 1.2M |
| Beta | 1.4 |
|
52-Week Range
$24.65
| |
About CarGurus, Inc. (CARG)
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. The company offers dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. It provides an online automotive marketplace that connects large audience of car shoppers with extensive network of dealers, anchoring integrated suite of products. It also offers Digital Deal which allows consumers the option to start their vehicle purchase process online for eligible listings; Dealership Mode which provides consumers with on-the-lot support during visits to participating dealers through the CarGurus app; Sell My Car Top Dealer Offers which allows dealers to make tailored trade-in offers; and IMV Scan enables dealers to scan a VIN using their smartphone to access IMV data; and PriceVantage, an advanced pricing software powered by machine learning that leverages real-time consumer demand. In addition, the company provides auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
Purification Calculator
As a halal stock with 1.01% impermissible income, you need to purify your dividends.
Related Halal Stocks in Consumer Cyclical
Frequently Asked Questions
Is CarGurus, Inc. (CARG) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), CarGurus, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is CarGurus, Inc.'s debt ratio?
CarGurus, Inc.'s debt ratio is 5.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 28.8%.
Does CarGurus, Inc. require dividend purification?
Yes, CarGurus, Inc. has an impermissible income ratio of 1.01%, which means 1.01% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are CarGurus, Inc.'s key financial metrics?
CarGurus, Inc. has a market capitalization of $3.3B, trailing P/E ratio of 17.9, and revenue of $907M. The company maintains a gross margin of 92.8% and a net margin of 17.2%. Return on equity stands at 43.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.