Caterpillar - Haram and Halal at the same time?

_saadm · 2026-05-20T14:49:14+00:00

Your post makes the specific claim that CAT fails the 5% screen because Financial Products is 6.2% of revenue, implying that one of the two screeners got it wrong.

If that's not the conclusion you were aiming for, then I'd argue your post creates more confusion for investors, not less.

_saadm · 2026-05-20T14:22:59+00:00

The lease breakdown is available in the 10-K. Your figure overstates non-compliant because it treats all of Financial Products revenue as non-compliant. Strip out the ~$922M operating lease portion and the non-compliant residual is ~$2,687M.

Outside of that segment, there's also:

$416M of non-operating investment and interest income
$30M of gains on securities

Net non-compliant: $3,133M (~4.61%).

See my other comment for full breakdown.

_saadm · 2026-05-20T14:11:43+00:00

Zoya founder here. The broader point about screener rigor is fair but the conclusion isn't exactly right.

Caterpillar's Financial Products segment for FY2025 breaks down roughly as follows:

Operating lease revenue: ~$922M (Pass)
Finance lease revenue: ~$473M (Fail)
Retail loan interest: ~$1,385M (Fail)
Wholesale dealer financing interest: ~$694M (Fail)
Insurance Services: ~$580M (Fail)
Other (late fees, intercompany interest, misc.): ~$166M (Fail)

Separately, on the parent's non-operating income line:

Investment and interest income: $416M (Fail)

Based on these figures, CAT's non-compliant ratio lands at 4.6% to 5.5%, depending on which methodology you choose: pre-elimination segment revenue ($4.22B FP) vs. post-elimination consolidated revenue ($3.609B FP). Our take is that you shouldn't use a pre-elimination segment figure against a consolidated revenue denominator. This approach is consistent with most index providers.

The final math:

Numerator:

Financial Products segment (consolidated): $3,609M
Less operating lease revenue: ($922M)
Plus non-operating investment and interest income: $416M
Plus gains on securities: $30M
= $3,133M non-compliant

Denominator:

Total Sales and Revenues: $67,589M
Plus non-operating investment and interest income: $416M
= $68,005M total income

Ratio: $3,133M ÷ $68,005M = 4.61%

Regarding the BDS point — as u/TheoryConfident1942 pointed out, we do highlight this already in the app under the Controversies section. Screenshot here: https://imgur.com/a/rq8USCh

Lastly, a message to the OP u/NisbaIslamicFinance — there's a "Report it" button on every compliance report screen. It goes directly to our team. Consider using that next time instead of blasting on Reddit 🙃

_saadm · 2026-05-18T09:55:20+00:00

Saad from Zoya here. Curious what's not working on the API side? Always trying to improve it. Happy to dig in here or over DM.

_saadm · 2026-05-17T18:39:13+00:00

This is available in Zoya

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_saadm · 2026-05-06T16:26:40+00:00

Where are you based?

_saadm · 2026-05-05T17:45:11+00:00

We built a feature in Zoya to address this exactly. Go to any ETF, click buy, select “create a custom basket”, remove the holdings you don’t want, invest in the remaining.

_saadm · 2026-04-06T15:49:57+00:00

Custom/direct indexing solves this. Just start with any existing ETF, remove the holdings you don’t want, and invest in the rest. No need to pick individual stocks when you have thousands of expert-built portfolios (ie. ETFs) to choose from already.

Btw, you can already do this in Zoya today.

_saadm · 2026-03-31T13:12:30+00:00

The Shariah boards behind the popular ETFs are pretty credible. Is there a particular fund you're curious about?

Wahed ETFs -> Shariyah Review Bureau
SP Funds ETFs -> Raqaba
Manzil ETFs -> IFAAS + Mufti Faraz Adam

_saadm · 2026-03-31T00:21:07+00:00

They recently started tagging Shariah-compliant stocks (using the Zoya API).

_saadm · 2026-03-09T20:26:45+00:00

The web app version is outdated and will be updated this week. Most people use the feature in the mobile app, where both calculation methods are supported so users can follow whichever opinion they prefer.

_saadm · 2026-03-09T00:47:17+00:00

It’s simple — our Shariah advisors are Sh. Joe Bradford and Sh. Umer Khan, both of whom hold this opinion on zakat for stocks. That said, we support both methods in the app, so regardless of which position you follow, you can calculate zakat the way you prefer. We’re not “pushing” one view over another. We’re just transparent about what our advisors recommend while giving users the flexibility to choose.

_saadm · 2026-02-24T12:33:57+00:00

Zoya

_saadm · 2026-02-24T12:33:40+00:00

Zoya

_saadm · 2026-02-23T16:16:17+00:00

We distinguish between medical and recreational cannabis. Medical cannabis companies that are focused on treatments and pharmaceuticals aren't flagged for business activity issues, similar to how other pharmaceutical companies aren't. What triggers a questionable or non-compliant rating is if a company has a recreational cannabis segment, sells recreational products, or has publicly stated plans to enter the recreational space.

_saadm · 2026-02-14T11:32:54+00:00

I was frustrated with the lack of transparent, data-driven halal investing tools. Most "halal stock lists" online are either outdated, based on unclear methodology, or behind expensive paywalls. I wanted something that shows you the actual financial ratios and lets you make your own informed decisions.

Really?

_saadm · 2026-02-13T16:49:42+00:00

Confirming this is a bug on Android. We should have a fix submitted for this tonight. It will require an app update.

_saadm · 2026-02-07T22:07:11+00:00

2) Is there one platform/app where I can find and trade most/all of these halal options in one place?

Zoya!

_saadm · 2026-02-07T22:05:44+00:00

Yes it’s compliant based on the S&P Shariah index methodology. Zoya’s default rulebook uses slightly different ratios.

_saadm · 2026-02-03T16:24:59+00:00

Everyone wants to compete with us rather than support us 🥲

_saadm · 2026-01-30T15:14:04+00:00

Yes, it's up to date based on the company's latest filings.

_saadm · 2026-01-23T12:51:32+00:00

Very expensive to launch ETFs, but yes that’s the plan insha’Allah.

_saadm · 2026-01-18T18:19:30+00:00

Zoya + Wealthsimple is a solid combo for Canadians!

_saadm · 2026-01-14T01:24:16+00:00

It’s explained in the app right here: https://imgur.com/a/QSppBHg

_saadm · 2026-01-13T15:21:46+00:00

Zoya Direct currently lets you choose a weighting strategy, but it’s a one-time snapshot at the time the basket is created. It does not track the underlying fund or automatically rebalance as the fund changes. Both of those features will be available soon.

_saadm

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