The Short Answer
CSW Industrials stock (CSWI) has a qualitative business verdict that is HALAL, but its current filing-based financial screen FAILS on debt/assets. CSW Industrials designs and manufactures specialty products for industrial and building end markets.
Specialty industrial-products manufacturing is generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 37.52%, above the examined one-third limits; gross interest income and a universal prohibited-revenue numerator are not separately disclosed.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.
869.294 / 2,316.684
33.799 / 2,316.684
244.063 / 2,316.684
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.52%, above the examined 33.333% debt limit; liquidity/assets is 1.46% and receivables-plus-cash/assets is 10.54%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is above the examined MSCI one-third limit; this is not an index-membership claim and the qualitative activity result remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets is above the examined Malaysia one-third limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the asset-based debt failure is documented independently.
Business-activity disclosure
CSW Industrials manufactures specialty products for HVAC/R, plumbing, building, general-industrial, energy, mining and electrical end markets. The general-purpose industrial-products activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for downstream uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; energy, mining and customer end-use allocation remains qualitative.
Purification
The filing does not separately disclose gross interest income; ZakatInvest does not infer a purification amount or prescribe a fixed scholar-approved percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from CSW Industrials' March 31, 2026 Form 10-K.
- Interest-bearing debt combines $29.458 million of current long-term debt with $839.836 million of long-term debt; operating leases are excluded.
- Cash and cash equivalents are $33.799 million; money-market instruments are included in cash equivalents and no additional securities balance is identified; net accounts receivable are $210.264 million.
- Fiscal-year net revenues are $1,082.549 million. The filing reports net interest expense of $22.245 million and discusses interest income, but does not provide a separately reproducible gross interest-income numerator.
- HVAC/R, plumbing, building, industrial, energy and mining products are retained as qualitative analysis; no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
CSW Industrials' Business Activity
CSW Industrials operates through three segments:
- Contractor Solutions: HVAC/R and plumbing products such as sealants, condensate pumps, coil cleaners, and lubricants
- Specialized Reliability Solutions: Lubricants, greases, and corrosion-protection products for industrial, energy, mining, and rail markets
- Engineered Building Solutions: Architecturally-specified building products including fire-and-smoke protection
These are general-purpose industrial-manufacturing businesses — selling specialty chemical and mechanical products. This is permissible at the activity level.
Concerns to Be Aware Of
1. Debt and Acquisition Activity
CSW Industrials reports $869.294 million of debt against $2,316.684 million of assets, producing a 37.52% filing-based debt/assets ratio. The debt screen fails the examined one-third limits, and acquisition activity can change leverage further.
2. Acquisition Activity
CSW Industrials is an active acquirer of bolt-on specialty-product businesses. Acquisition activity has increased debt and goodwill, so the screen should be re-verified following material transactions.
3. End-Market Cyclicality
Earnings can be sensitive to residential and commercial construction and industrial end-market cycles. This is a business-cycle consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
Using CSW Industrials' latest Form 10-K (USD millions):
- Debt / total assets: 37.52% — above the examined one-third limits
- Cash + securities / total assets: 1.46%
- Receivables + cash / total assets: 10.54%
- Gross interest income: Not separately disclosed
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Debt screen fails; activity and gross interest income remain incomplete.
- MSCI-style: Debt screen fails; this is not an index-membership claim.
- Malaysia-style: Debt screen fails; this is not an official classification.
Bottom Line
CSW Industrials (CSWI) has a generally permissible specialty-industrial business, but the current filing-based debt screen fails at 37.52% of assets. The qualitative business verdict remains HALAL while the quantitative result is not compliant under the examined financial limits; investors should consult the methodology they follow.
For Muslim investors seeking diversified-industrial exposure, CSWI sits alongside other halal-screened names like RPM International (RPM) and Watsco (WSO).
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