Is Cars.com Inc. (CARS) Halal?

NYSE Communication Services United States $476M
✗ NOT HALAL
Confidence: 90/100
Cars.com Inc. (CARS) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 93.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Cars.com Inc. operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 93.0%
/ 30%
11.6%
/ 30%
27.2%
/ 30%
0.61%
/ 5%
✗ NOT HALAL
DJIM 93.0%
/ 33%
11.6%
/ 33%
27.2%
/ 33%
0.61%
/ 5%
✗ NOT HALAL
MSCI 42.5%
/ 33%
5.3%
/ 33%
12.4%
/ 33%
0.61%
/ 5%
✗ NOT HALAL
S&P 93.0%
/ 33%
11.6%
/ 33%
27.2%
/ 33%
0.61%
/ 5%
✗ NOT HALAL
FTSE 42.5%
/ 33%
5.3%
/ 33%
12.4%
/ 50%
0.61%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
24.9
Forward: 3.6
EPS
$0.32
P/B Ratio
1.0
EV/EBITDA
5.8
EV: $878M
Revenue
$723M
Growth: 1.9%
Beta
1.5
High volatility
Current Ratio
1.9

Profitability

Gross Margin 66.7%
Operating Margin 11.8%
Net Margin 2.8%
Return on Equity (ROE) 4.1%
Return on Assets (ROA) 3.5%

Cash Flow & Balance Sheet

Operating Cash Flow$152M
Free Cash Flow$126M
Total Debt$452M
Debt-to-Equity99.1
Current Ratio1.9
Total Assets$1.1B

Price & Trading

Last Close$8.17
50-Day MA$9.93
200-Day MA$11.59
Avg Volume1.3M
Beta1.5
52-Week Range
$7.40
$13.97

About Cars.com Inc. (CARS)

CEO
Mr. Tobias Hartmann
Employees
1,700
Sector
Communication Services
Industry
Internet Content & Information
Country
United States
Exchange
NYSE
Market Cap
$476M
Currency
USD

Cars.com Inc., an audience-driven technology company, provides solutions for the automotive industry in the United States. The company offers marketplace through Cars.com that allows OEMs and dealers to merchandise their inventory, as well as provides reputation management technology and digital financing tools. It also operates dealer websites to transform automotive retail processes; and trade and appraisal product, including AccuTrade, which uses demand data and diagnostic scans to determine the right trade-in offer for every VIN in minutes. In addition, the company offers media solution, such as Cars Social, allows dealers to target and serve native advertisements displaying real-time inventory to in-market car shoppers on Facebook, Instagram, and other social media platform; VIN Performance Media, a machine-learning for media campaign, including audience targeting, real-time inventory, and ad placement across search, social, and display; In-Market Video, provides OEMs and dealers to pinpoint serious, ready-to-buy shoppers geographically; and proprietary in-market media solutions. The company serves local dealers, OEMs, dealer groups, and auto-adjacent companies. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.

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Frequently Asked Questions

Is Cars.com Inc. (CARS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Cars.com Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Cars.com Inc.'s debt ratio?

Cars.com Inc.'s debt ratio is 93.0% 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 42.5%.

What are Cars.com Inc.'s key financial metrics?

Cars.com Inc. has a market capitalization of $476M, trailing P/E ratio of 24.9, and revenue of $723M. The company maintains a gross margin of 66.7% and a net margin of 2.8%. Return on equity stands at 4.1%.

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.