CVLT

Commvault Systems, Inc.

HALAL

Score: 86/100

stock

Is CVLT Halal?

Developer of data-protection, backup, and cyber-resilience software delivered increasingly as SaaS — a permissible software business with a net-cash financial-screen profile.

What You Should Know

Commvault Systems, Inc. is a publicly-traded enterprise-software company that provides data-protection, backup-and-recovery, cyber-resilience, and data-management solutions across on-premises, cloud, and hybrid environments, increasingly delivered through its subscription and SaaS offerings. Enterprise-software development, data-protection-and-recovery software, and cyber-resilience SaaS are general-purpose technology activities that are unambiguously permissible at the activity level under standard Sharia methodology. The financial screen passes comfortably: Commvault operates a net-cash balance sheet with a substantial cash-and-investments position and generates strong positive free cash flow, so the debt-to-market-cap ratio sits effectively at zero, well below the 33% Sharia threshold. Most major Sharia advisory boards classify Commvault as permissible with purification of small interest-income components.

⚠️ Concerns

•Minor interest income on cash and short-term investment balances — purification of a small portion of any future dividends may be advisable; Commvault directs cash flow toward the business and share repurchases rather than a dividend
•Interest-income-to-revenue and liquidity ratios should be confirmed against the relevant thresholds and the investment portfolio confirmed to be in Sharia-acceptable instruments, given the sizable cash position
•The software business is competitive and subscription-transition-sensitive — this is a business and valuation consideration rather than a Sharia screen concern
•Receivables-to-assets ratio should be checked against the preferred board's threshold at the time of investment