Is The Honest Co., Inc. HNST stock Halal to invest in?

Yes, as of September 2026, The Honest Co., Inc. stock (HNST) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. The Honest Co., Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.17%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of The Honest Co., Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is The Honest Co., Inc. HNST reviewed for Shariah compliance?

Tabadulat reviews The Honest Co., Inc. HNST for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for The Honest Co., Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does The Honest Co., Inc. HNST pass the AAOIFI Non Permissible Income criteria?

Yes, as of September 2026, The Honest Co., Inc. stock (HNST) passes the AAOIFI non-permissible income screen. In practice this screen asks a simple question: how much of the company's revenue comes from sources Islam prohibits, such as Riba, conventional financial services, alcohol, gambling or tobacco? AAOIFI allows at most 5%, and The Honest Co., Inc. stays below that line this month. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does The Honest Co., Inc. HNST pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, The Honest Co., Inc. stock (HNST) passes the AAOIFI interest-bearing investments screen. This screen looks at where the company parks its cash: conventional deposits, bonds, treasury bills and money-market funds all earn Riba, so AAOIFI caps them at 30% of market capitalisation. The Honest Co., Inc. stays inside that cap in the latest screening. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does The Honest Co., Inc. HNST pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of September 2026, The Honest Co., Inc. stock (HNST) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar Riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. The Honest Co., Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for The Honest Co., Inc. HNST stock?

The dividend purification factor for The Honest Co., Inc. (HNST) stands at 99.17% in the September 2026 screening. In plain terms, 99.17% of a HNST dividend is retained, and the remainder reflects incidental non-permissible income, typically interest on corporate cash, which Halal investors donate to charity (Tazkiyah). AAOIFI methodology asks for purification even on fully compliant stocks. The factor is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does The Honest Co., Inc. HNST pass the AAOIFI Preference Share screen?

Yes, as of September 2026, The Honest Co., Inc. stock (HNST) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. The Honest Co., Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

Invest Halal, Anytime, Anywhere

Download the Tabadulat app and start building your Shariah-compliant portfolio in minutes.

English

العربية

Is Honest (HNST) stock Halal?

NASDAQ

Shariah-Compliant

Not Shariah

The Honest Co., Inc. (HNST) is Shariah compliant in the September 2026 AAOIFI screening, passing all four AAOIFI screens. Dividends are purified using a factor of 99.17%. Tabadulat re-screens HNST monthly, and the status can change when new financial data arrives.

Sector:

Consumer Defensive

Industry:

Household & Personal Products

Employees:

164

Website:

https://www.honest.com

Market cap:

$614M

P/E ratio:

47.3

Dividend yield:

52-week range:

$2.07 - $5.96

Data as of:

3 September 2026

Screening history:

September 2026: PASS

Honest is a consumer goods company specializing in wellness and household products. Founded by actress Jessica Alba, the company's mission centers around providing safe, eco-friendly, and socially responsible products for families. Honest Co.'s portfolio includes items such as baby diapers, personal care products, and home cleaning solutions, all designed with a focus on non-toxic and sustainable ingredients. The company primarily serves parents and families seeking healthy lifestyle choices and caters to the rising demand for ethical consumerism. Before any of that matters to a Muslim investor, one question comes first: is Honest stock Halal?

Is Honest Shariah compliant?

Consumer staples companies like Honest face the screening question at the shelf, not the balance sheet: does any revenue come from alcohol, tobacco or other impermissible lines? AAOIFI Shariah Standard No. 21 tolerates such income only below 5% of revenue, with the financial ratios checked behind it.

Does Honest pass the business activity test?

Yes. In the September 2026 screening Honest holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item is the product mix: any alcohol, tobacco or similar lines count against the 5% ceiling.

Is Honest's income Halal?

Yes, within AAOIFI's tolerance. Honest's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 99.17% tells holders of HNST what share of each dividend to keep and what remainder to donate to charity.

Does Honest meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has HNST re-screened every month, and the result above always shows the latest verdict.

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 four screens? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance

Frequently asked questions

Related stocks

Mobile login screen for Tabadulat with fields to enter email, a Continue button, an option to create an account, and a language selector showing EN.

Step 1

Open your account.

Create your Tabadulat account in minutes: enter your details, complete identity verification, and add funds by secure transfer in multiple currencies. You're ready to start investing in Halal stocks the same day.

Mobile screen showing add money interface with 100 AED amount and Manual Bank Transfer payment method selected, noting 1-2 business days processing.

Step 2

Deposit.

Add funds to your account using a secure payment method. You can deposit in multiple currencies to get started.

Step 3

Screen.

Screen Stocks for Free and explore a wide range of stocks that are ethically screened for Shariah compliance. Use our Halal Stock Screener to find the best opportunities.