Is Compass Group (CPG) Halal?

LSE Consumer Cyclical United Kingdom $34.7B
✓ HALAL
Confidence: 95/100
Compass Group (CPG) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 18.0% against the AAOIFI threshold of 30%, Compass Group comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Restaurants), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 18.0%
/ 30%
1.5%
/ 30%
11.8%
/ 30%
0.06%
/ 5%
✓ HALAL
DJIM 18.0%
/ 33%
1.5%
/ 33%
11.8%
/ 33%
0.06%
/ 5%
✓ HALAL
MSCI 26.2%
/ 33%
2.2%
/ 33%
17.1%
/ 33%
0.06%
/ 5%
✓ HALAL
S&P 18.0%
/ 33%
1.5%
/ 33%
11.8%
/ 33%
0.06%
/ 5%
✓ HALAL
FTSE 26.2%
/ 33%
2.2%
/ 33%
17.1%
/ 50%
0.06%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
24.9
Forward: 16.6
EPS
$0.82
Dividend Yield
238.0%
Payout: 56.4%
P/B Ratio
599.6
EV/EBITDA
11.6
EV: $41.2B
Revenue
$46.1B
Growth: 10.6%
Beta
0.2
Low volatility
Current Ratio
0.7

Profitability

Gross Margin 72.9%
Operating Margin 6.5%
Net Margin 4.1%
Return on Equity (ROE) 25.6%
Return on Assets (ROA) 7.4%

Cash Flow & Balance Sheet

Operating Cash Flow$3.4B
Free Cash Flow$2.5B
Total Debt$7.0B
Debt-to-Equity90.7
Current Ratio0.7
Total Assets$26.7B

Price & Trading

Last CloseGBp 2,085.00
50-Day MAGBp 2,188.52
200-Day MAGBp 2,417.19
Avg Volume5.7M
Beta0.2
52-Week Range
GBp 2,000.00
GBp 2,748.00

About Compass Group (CPG)

CEO
Mr. Dominic William Blakemore
Employees
590,000
Sector
Consumer Cyclical
Industry
Restaurants
Country
United Kingdom
Exchange
LSE
Market Cap
$34.7B
Currency
GBp

Compass Group PLC provides food and support services in North America and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; insurance brokerage services; and others. It serves business and industry; healthcare and senior living; education; sports and leisure; and defense, offshore, and remote sectors. The company was founded in 1941 and is based in Chertsey, the United Kingdom.

Purification Calculator

As a halal stock with 0.06% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Compass Group (CPG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Compass Group 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 Compass Group's debt ratio?

Compass Group's debt ratio is 18.0% 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 26.2%.

Does Compass Group require dividend purification?

Yes, Compass Group has an impermissible income ratio of 0.06%, which means 0.06% 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 Compass Group's key financial metrics?

Compass Group has a market capitalization of $34.7B, trailing P/E ratio of 24.9, and revenue of $46.1B. The company maintains a gross margin of 72.9% and a net margin of 4.1%. Return on equity stands at 25.6%.

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.