TSX Shariah screener · September 2026

Is Algoma Central Corporation (ALC) Halal?

FAIL

Algoma Central Corporation · TSX: ALC · Industrials

The short answer

FAIL under the standard AAOIFI-style screen used on this site. Algoma Central's total interest-bearing debt of C$772.4 million is about 80.3% of its market capitalization (~C$961.5 million), far above the ~33% ceiling. The business itself — marine transportation — passes the business-activity gate, and interest income is negligible, so debt is the deciding factor. Figures are from the company's Q2 2026 interim financial statements and market data; this page states screening facts only and is not a religious ruling.

Gate 1 — Business activity: PASS

Algoma Central Corporation (TSX: ALC) is a marine transportation company operating dry-bulk carriers and product tankers on the Great Lakes–St. Lawrence Seaway and internationally. Its reportable segments are Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, and Global Short Sea Shipping; revenue comes from contracts of affreightment, time charters, and pool revenue. None of the standard prohibited business activities — conventional banking and insurance, alcohol, gambling, weapons, cannabis, tobacco, pork, or adult entertainment — are part of the company's operations, so the business-activity gate passes on the standard screen. Its product tankers carry petroleum products; the standard screen does not classify petroleum transportation as a prohibited activity. Scholars differ on edge cases; this page records facts, not rulings — see the ask-a-scholar page.

Gate 2 — Debt and cash: FAILED

The Q2 2026 interim balance sheet (June 30, 2026, unaudited, in thousands of Canadian dollars) reports short-term borrowings of C$165,206 thousand and total long-term debt including the current portion of C$605,583 thousand. Lease liabilities total about C$1,642 thousand per the contractual-obligations disclosure. Total interest-bearing debt is therefore C$772,431 thousand (~C$772.4 million). With 40,567,816 common shares outstanding and a share price of about C$23.70 (Finnhub, ALC.TO, September 2026), market capitalization is roughly C$961.5 million. Debt ÷ market cap ≈ 80.3% — well above the ~33% ceiling, so the debt gate fails. Cash and cash equivalents of C$30,046 thousand are about 3.1% of market cap, within the ~33% cash ceiling, but the debt result decides this gate. All figures recomputed from the cited sources.

Gate 3 — Non-compliant income: PASS

The statement of earnings for the six months ended June 30, 2026 reports interest income of C$306 thousand against total revenue of C$386,054 thousand — about 0.08%, far under the ~5% non-compliant-income ceiling, so this gate passes. The company does pay interest expense (C$14,275 thousand), which is a cost rather than income and is already reflected in the debt gate.

Key figures used

Total interest-bearing debt: C$772.4 million at June 30, 2026 = short-term borrowings C$165.2M + long-term debt incl. current portion C$605.6M + lease liabilities ~C$1.6M (Q2 2026 interim financial statements, algonet.com).
Market capitalization: ~C$961.5 million = 40,567,816 shares outstanding × ~C$23.70 share price (Finnhub, ALC.TO, September 2026).
Debt ÷ market cap: ~80.3% vs the ~33% ceiling — this is the failing gate.
Cash and cash equivalents: C$30.0 million (~3.1% of market cap); no marketable securities disclosed — within the ~33% cash ceiling.
Interest income: C$306 thousand on revenue of C$386.1 million (six months ended June 30, 2026) = 0.08% — under the ~5% ceiling.
Business: marine transportation — Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Global Short Sea Shipping; no prohibited business segments identified.

Frequently asked questions

Is Algoma Central (ALC) halal?

Under the standard AAOIFI-style screen used on this site, FAIL. The company is a marine transportation business with no prohibited business segments and negligible interest income, but its total interest-bearing debt of C$772.4 million is about 80.3% of its ~C$961.5 million market capitalization — far above the ~33% debt ceiling. Figures are from the Q2 2026 interim financial statements and September 2026 market data; this is an educational screen, not a religious ruling.

What is Algoma Central's debt-to-market-cap ratio?

About 80.3%: C$772.4 million of total interest-bearing debt (short-term borrowings C$165.2M + long-term debt incl. current portion C$605.6M + lease liabilities ~C$1.6M, June 30, 2026) divided by a market capitalization of about C$961.5 million (40,567,816 shares x ~C$23.70, Finnhub ALC.TO, September 2026). The AAOIFI-style ceiling used here is ~33%.

Does Algoma Central operate in any haram business segments?

No prohibited segments were identified. Algoma Central is a marine transportation company: its segments are Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, and Global Short Sea Shipping. None of the standard prohibited activities — conventional banking and insurance, alcohol, gambling, weapons, cannabis, tobacco, pork, or adult entertainment — are part of its operations. Its product tankers carry petroleum products, which the standard screen does not classify as a prohibited activity.

What is Algoma Central's non-compliant income ratio?

About 0.08%: interest income of C$306 thousand divided by total revenue of C$386.1 million for the six months ended June 30, 2026 (Q2 2026 interim financial statements). That is well under the ~5% ceiling used in the standard screen.

Do Zoya, Musaffa, or ShariaPortfolio rate Algoma Central?

At screening time (September 30, 2026), no public Shariah rating page for Algoma Central (ALC) was found on Zoya, Musaffa, or ShariaPortfolio — reported as absent rather than invented. The FAIL result here rests on the debt ratio computed from the company's own filings, not on any third-party rating.

Sources

Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.