Is AUTO.L (Auto Trader Group plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AUTO.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.08% vs ≤33% threshold), interest income ratio (0.15% vs ≤5% threshold), and cash & securities ratio (0.37% vs ≤33% threshold).

Auto Trader Group plc is the UK and Ireland’s largest digital automotive marketplace, effectively replacing the old print magazines with a dominant online platform. Their core business revolves around connecting buyers and sellers through vehicle advertisements, serving private sellers, car retailers, and manufacturers. The platform also generates revenue through display advertising and data services for logistics firms and home traders, solidifying its position as the go-to hub for the British car market. For Muslim investors, Auto Trader is classified as Halal, having passed all four critical AAOIFI screening criteria . The company’s business model is fundamentally compliant as it primarily sells advertising space and data services rather than impermissible goods. This 'Pass' status means you can confidently include AUTO.L in a halal portfolio without needing to purify significant portions of dividends , as the non-compliant income is minimal. Financially, this stock is particularly attractive from an Islamic perspective due to its extremely low leverage. With a debt-to-market cap ratio of only 0.1%, it sits far below the 33% threshold, indicating a balance sheet that is virtually free of interest-bearing debt burdens. Furthermore, cash and interest-bearing securities make up just 0.4% of its market cap, showing efficient capital deployment rather than hoarding cash in interest-generating accounts. Investors should note that while the core business is advertising, Auto Trader does facilitate connections to insurance and financing partners. However, since the revenue is primarily derived from the advertisement placement and leads rather than direct underwriting of interest-based loans, it remains compliant. Investors should simply monitor future annual reports to ensure revenue from these ancillary financial referrals remains below the 5% threshold. Auto Trader Group plc operates in the Communication Services sector under the Internet Content & Information industry and is headquartered in Manchester, GB. The company is led by CEO Nathan James Coe and employs approximately 1,296 people.

AUTO.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AUTO.L passed 4 of these 4 screens.

Although AUTO.L passes all shariah screens, it does earn $900,000 in interest income (0.15% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.15 to purify the income.

AUTO.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.