CVLT
Commvault Systems, Inc.
Is CVLT Halal?
Developer of data-protection, backup, and cyber-resilience software delivered increasingly as SaaS — a permissible software business with a net-cash financial-screen profile.
What You Should Know
Commvault Systems, Inc. is a publicly-traded enterprise-software company that provides data-protection, backup-and-recovery, cyber-resilience, and data-management solutions across on-premises, cloud, and hybrid environments, increasingly delivered through its subscription and SaaS offerings. Enterprise-software development, data-protection-and-recovery software, and cyber-resilience SaaS are general-purpose technology activities that are unambiguously permissible at the activity level under standard Sharia methodology. The financial screen passes comfortably: Commvault operates a net-cash balance sheet with a substantial cash-and-investments position and generates strong positive free cash flow, so the debt-to-market-cap ratio sits effectively at zero, well below the 33% Sharia threshold. Most major Sharia advisory boards classify Commvault as permissible with purification of small interest-income components.
⚠️ Concerns
- •Minor interest income on cash and short-term investment balances — purification of a small portion of any future dividends may be advisable; Commvault directs cash flow toward the business and share repurchases rather than a dividend
- •Interest-income-to-revenue and liquidity ratios should be confirmed against the relevant thresholds and the investment portfolio confirmed to be in Sharia-acceptable instruments, given the sizable cash position
- •The software business is competitive and subscription-transition-sensitive — this is a business and valuation consideration rather than a Sharia screen concern
- •Receivables-to-assets ratio should be checked against the preferred board's threshold at the time of investment
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →