Is CarParts.com (PRTS) stock Halal?

CarParts.com is a leading e-commerce platform specializing in the distribution of automotive parts and accessories. Its primary function is to provide a convenient, extensive online marketplace for customers looking for diverse car parts, ranging from replacement components to performance enhancements. CarParts.com plays a crucial role in the automotive aftermarket industry, catering to both individual car owners and professional mechanics who require reliable, cost-effective parts for vehicle maintenance and repair. Before any of that matters to a Muslim investor, one question comes first: is CarParts.com stock Halal?

Is CarParts.com Shariah compliant?

No. In the October 2026 screening CarParts.com (PRTS) does not pass AAOIFI screening: it fails the interest-bearing investments and interest-bearing debt screens. Industrial businesses like CarParts.com usually pass the activity screen without drama. The harder test is financial: heavy assets mean heavy financing, and AAOIFI Shariah Standard No. 21 tolerates interest bearing debt and investments only below 30% of market capitalisation, ratios that shift with every move in the share price.

Does CarParts.com pass the business activity test?

The activity screen is only part of the picture this month: CarParts.com currently fails the interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is CarParts.com's income Halal?

Yes, within AAOIFI's tolerance. CarParts.com's income from non-permissible sources stays below 5% of revenue in the October 2026 screening.

Does CarParts.com meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps, measured against a market capitalisation of $65M (market data as of 1 October 2026): interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has PRTS re-screened every month.

Why do other halal screeners show a different verdict for CarParts.com?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read AAOIFI Standards Explained: What Makes a Stock Halal?