Is AVY (Avery Dennison Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AVY 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 (29.91% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.62% vs ≤33% threshold).

Avery Dennison Corporation is a global manufacturer of pressure-sensitive materials, adhesive labels, and packaging solutions. Under brands like Fasson and Mactac, the company provides essential labeling and graphic materials to industries ranging from food and pharmaceuticals to personal care and durables. For Muslim investors, Avery Dennison represents a fully Halal investment opportunity within the industrials sector. The stock successfully passes all AAOIFI screening criteria, meaning both its core business operations and its financial structures align with Islamic finance principles. From a financial perspective, Avery Dennison demonstrates responsible leverage with a debt-to-market cap ratio of 29.9%, safely below the 33% limit. Furthermore, the company holds minimal cash reserves at 1.6% of market cap and reports 0.00% interest income, ensuring investors are not exposed to haram earnings. While the company is currently compliant, investors should keep a close eye on its debt levels during broader market downturns. Since the debt ratio is relatively close to the 33% threshold, any significant drop in market capitalization could temporarily push the stock into non-compliant territory. Avery Dennison Corporation operates in the Industrials sector under the Business Equipment & Supplies industry and is headquartered in Mentor, OH, US. The company is led by CEO Deon Stander and employs approximately 35,000 people.

AVY 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. AVY passed 4 of these 4 screens.

AVY has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

AVY was last screened on 2026-04-29. 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.