Is Chemtrade / CHE.UN Halal?
Chemtrade Logistics Income Fund (TSX: CHE.UN) is a diversified specialty-chemicals provider — sulphuric acid, water-treatment coagulants, electrochemicals and industrial services across North America and beyond. The business has no verified haram lines — but long-term debt of C$1,110.8 million is about 75% of the ~C$1.48 billion market cap, decisively over the ~33% ceiling. FAIL.
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
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world — sulphuric acid and spent-acid processing, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite, chlor-alkali products, zinc oxide, and industrial byproduct processing. Three segments: Acid and Sulphur Products, Water Solutions, and Electrochemicals. No verified involvement in weapons/defence, gambling, alcohol, tobacco, pork or adult entertainment was found. Gate one: passes.
Gate two: the ratios — fails decisively
The debt gate fails decisively. As at June 30, 2026: C$1,110.8 million in long-term-debt principal (all convertible debentures were redeemed June 30, 2026, so no convertible debt remains), plus lease liabilities of C$185.4 million and cash of C$44.5 million — net debt of C$1,251.7 million. Market cap is about C$1.48 billion (C$13.31 TSX unit close on September 29, 2026 × about 111.5 million units) — putting long-term debt at ~75% of market cap (about 84% on net debt), decisively over the ~33% ceiling. The income gate is not needed for this call: interest income is not separately disclosed in the primary filings, and a decisive debt-gate fail settles the screener. (For context: net finance costs were C$10.6 million for the quarter.) Gate two: fails.
What other screeners say
No publicly verifiable rating for CHE.UN was found on Zoya, Musaffa, or ShariaPortfolio — their assessments, if any, sit behind apps or APIs and could not be confirmed. No rating is reported here.
The bottom line
This screener gives Chemtrade Logistics Income Fund (TSX: CHE.UN) a FAIL. Specialty chemicals has no verified haram lines, but debt at ~75% of market cap is decisively over the ~33% ceiling. Snapshot dated September 29, 2026; re-checked quarterly after earnings.
Frequently asked questions
Is Chemtrade stock halal?
This screener gives Chemtrade Logistics Income Fund (TSX: CHE.UN) a FAIL. The specialty-chemicals provider passes the business-activity gate, but long-term debt of C$1,110.8 million is about 75% of the ~C$1.48 billion market cap — decisively over the ~33% ceiling. Interest income is not separately disclosed and is not needed for the FAIL call.
What are Chemtrade's debt and market-cap figures?
As at June 30, 2026 (Q2 2026): long-term debt principal of C$1,110.8 million (all convertible debentures were redeemed June 30, 2026, so no convertible debt remains), plus lease liabilities of C$185.4 million and cash of C$44.5 million — net debt of C$1,251.7 million. Market cap is about C$1.48 billion (C$13.31 TSX unit close on September 29, 2026 × about 111.5 million units). Long-term debt alone is about 75% of market cap — decisively over the ~33% ceiling.
Why does Chemtrade fail the screen?
Debt. The ~33% ceiling allows about C$489 million of debt against the ~C$1.48 billion market cap; the company carries C$1,110.8 million in long-term-debt principal — about 75% of market cap, or about 84% including leases. The fail is decisive.
Do any third-party screeners cover Chemtrade?
No publicly verifiable rating for CHE.UN was found on Zoya, Musaffa, or ShariaPortfolio — their assessments, if any, sit behind apps or APIs and could not be confirmed. No rating is reported here.
What could change Chemtrade's halal screener?
A large debt paydown or a sharp market-cap recovery could bring the debt-to-market-cap ratio below the ~33% ceiling — it sits at about 75% today. This screener is a snapshot dated September 29, 2026 and is re-checked quarterly after earnings.