Is Cabot Corporation (CBT) halal? Doubtful. Based on AAOIFI screening, Cabot Corporation passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 70/100 (Grade: B+).

Cabot Corporation

CBT: Is Cabot Corporation Halal?

Doubtful

Cabot Corporation

NYSEBasic MaterialsUS

$83.04

-2.62%

Purify ~0.7% of income

About Cabot Corporation

Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions. The company offers reinforcing carbons used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites. It also provides specialty carbons used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; fumed alumina used in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries; and aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications. In addition, the company offers activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; and activated carbon solutions for activated carbon injection in coal-fired utilities, mobile water filter units, and carbon reactivation services. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

Sector: Basic Materials 路 Industry: Chemicals - Specialty

Why This Stock Is Doubtful

  • Debt is 25.6% of market cap, only 4.4 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 19, 2026
B+

Good

Good compliance with minor concerns

70Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap25.6% / 30.0%

Compliance History

  1. Doubtfulnow

    since Jun 2026

  2. Halal

    until the change above

  3. Doubtful

    until the change above

  4. Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 19, 2026Fiscal: FY 2025Source: FMP

Purify Your CBT Dividends

0.7% non-compliant income

CBT has 0.7% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

4.3B

Price

$83.04

Sector

Basic Materials

Industry

Chemicals - Specialty

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Frequently Asked Questions

Is Cabot Corporation (CBT) halal to invest in?
Cabot Corporation (CBT) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did Cabot Corporation get a B+ compliance rating?
Cabot Corporation (CBT) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 25.6% (limit 30%); interest-bearing deposits of 5.4% (limit 30%); prohibited income of 0.73% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Cabot Corporation's Shariah verdict?
Cabot Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Cabot Corporation re-screened for Shariah compliance?
Cabot Corporation (CBT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 19, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.