GTLS
Chart Industries, Inc.
Is GTLS Halal?
Manufacturer of cryogenic and process-technology equipment for industrial-gas, energy, and clean-energy applications — a permissible industrial-process-equipment manufacturing business, with leverage as the primary financial-screen consideration.
What You Should Know
Chart Industries, Inc. is a publicly-traded, diversified global manufacturer and technology provider of highly-engineered equipment and systems for the cryogenic and process industries, organized into reporting segments including Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. Its products — cryogenic storage tanks, heat exchangers, cold boxes, air-cooled heat exchangers, process-and-fan systems, hydrogen-and-water-treatment equipment, and related aftermarket-services — serve industrial-gas, LNG, hydrogen, carbon-capture, water-treatment, and general-industrial markets. Cryogenic-equipment manufacturing, heat-transfer-systems manufacturing, and process-technology-equipment manufacturing are general-purpose industrial-process-equipment activities that are unambiguously permissible at the activity level under standard Sharia methodology, with a large and growing aftermarket-and-repair recurring-revenue base. The financial screen is the principal consideration: Chart took on substantial leverage to fund its acquisition of Howden and has been actively de-levering, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment. Subject to leverage verification, major Sharia advisory boards classify Chart as permissible with purification of small interest-income components.
⚠️ Concerns
- •Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Chart took on substantial leverage to fund the Howden acquisition and has been actively de-levering; this is the primary Sharia-screening consideration and may cause some boards to flag the stock until the ratio normalizes
- •Minor interest income on cash and short-term investment balances — purification of a small portion of any distributions may be advisable
- •Chart maintains a tranche of preferred stock and a significant debt load — investors who screen for capital-structure and preferred-equity considerations should review the balance sheet at the time of investment
- •Process-and-cryogenic equipment is sold into mixed-Sharia-profile end-markets (industrial-gas, LNG, hydrogen, carbon-capture, and general-industrial) — under standard Sharia screening methodology, the relevant industry classification is general-purpose industrial-process-equipment manufacturing rather than the look-through end-customer mix
- •Earnings can be sensitive to energy-and-industrial capital-spending cycles and large-project timing — this is a business-cycle 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 →