Screened September 29, 2026 · TSX: ACQ · Q2 2026 (quarter ended June 30, 2026)

Is AutoCanada (ACQ) halal?

AutoCanada (TSX: ACQ) is an Edmonton-based multi-location auto dealership group with no haram business segment. But interest-bearing debt of ~C$1,953.0 million is about 370% of the ~C$528.1 million market cap, far above the ~33% ceiling. This screener is a FAIL on the debt gate.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — passes

AutoCanada Inc., headquartered in Edmonton, operates franchised auto dealerships in Canada and the U.S. (the U.S. portfolio is being divested in 2026). Activities: new and used vehicle sales — the company says maximum revenue comes from used cars — plus parts and service, collision repair centres (expanding through acquisitions in 2026), extended service contracts, vehicle protection and after-market products. It arranges financing and insurance for its customers through third-party lenders and insurers — F&I gross profit per retail unit was C$3,410 in Q2 2026 — but it does not itself lend money at interest. This is commission income from arranging products, recorded in revenue; the Q2 2026 interim statements show only a small finance income line (C$436K, about 0.03% of revenue). No haram business segments were found. The business gate passes.

Gate two: the ratios — debt fails decisively

At June 30, 2026 (Q2 2026 results, reported August 12, 2026, all CAD): interest-bearing debt of ~C$1,953.0 million = revolving floorplan facilities of C$1,018.4M + current indebtedness of C$1.7M + current lease liabilities of C$27.9M + long-term indebtedness of C$501.3M + long-term lease liabilities of C$403.7M. With 22,988,000 shares outstanding at ~C$22.98 (TSX close, week ended September 25, 2026), the market cap is about C$528.1 million — debt is about 370% of market cap, far above the ~33% ceiling, so it fails the debt gate decisively. Cash was C$142.3M; total equity C$487.2M. The company amended its syndicated credit agreement in April 2026 (floorplan facility to C$1,000M, total bank facilities C$1,380M, extended to November 22, 2028) and plans to direct U.S. dealership divestiture proceeds toward debt reduction, targeting leverage of 2.0x–3.0x Total Net Funded Debt to Bank EBITDA (3.62x at June 30, 2026). Finance costs were C$28.4M in Q2 2026 (floorplan financing expense C$9.3M) against finance income of C$436K — the fail result rests on debt alone. Q2 2026 revenue was C$1.42B; net income from continuing operations was C$12.1M.

What other screeners say

No coverage pages for ACQ/ACQ.TO were found on Zoya, Musaffa, or ShariaPortfolio in targeted searches as of September 2026. This screener is based on AutoCanada's Q2 2026 financials.

The bottom line

This screener gives AutoCanada Inc. (TSX: ACQ) a FAIL. A clean dealership business, but debt at about 370% of market cap is far over the ~33% ceiling — even the floorplan inventory financing alone (C$1,018.4M) is nearly twice the market cap. Leverage is worth watching: the 2026 U.S. dealership divestiture (proceeds on track for C$115M–C$130M) and the amended credit facility are meant to bring leverage down toward the 2.0x–3.0x target. The company paid no dividend in 2026 (most recent dividend C$0.10 in February 2020), so there is no dividend to purify. Consult a qualified scholar. Snapshot dated September 29, 2026; re-checked quarterly after earnings.

Sources

• Q2 2026 results (AutoCanada, CNW, Aug 12, 2026)
• ACQ weekly report — C$22.98 close, week ended Sept 25, 2026 (Sharemaestro)
• AutoCanada stock profile — shares outstanding 22,988,000 (MarketBeat)

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