Stellus Capital Investment Corporation

SCM: Is Stellus Capital Investment Corporation Halal?

Stellus Capital Investment Corporation

NYSEFinancial ServicesUS

$8.32

+2.59%

Market Cap: 240.8M

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Stellus Capital Investment Corporation (SCM) halal? Not Halal. Based on AAOIFI screening, Stellus Capital Investment Corporation passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

270.6% of 30.0% limit

What this means for you

Most scholars advise not holding SCM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Stellus Capital Investment Corporation

Stellus Capital Investment Corporation operates as a Business Development Company (BDC), allocating capital to privately-held, mid-sized enterprises. The firm employs various financing structures, including senior secured (first lien), junior secured (second lien), blended (unitranche), and hybrid (mezzanine) debt, frequently complemented by an equity stake. Its geographic investment focus is primarily on opportunities within the United States and Canada. Stellus Capital targets businesses that generate annual Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ranging from $5 million to $50 million.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

Free · No credit card required

Track SCM and 10,000+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

10,000+ assets AAOIFI standards Free watchlist

Frequently Asked Questions

Is Stellus Capital Investment Corporation (SCM) halal to invest in?
Stellus Capital Investment Corporation (SCM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Stellus Capital Investment Corporation get a F compliance rating?
Stellus Capital Investment Corporation (SCM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 270.6% (limit 30%); interest-bearing deposits of 10.4% (limit 30%); prohibited income of 140.45% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Stellus Capital Investment Corporation's Shariah verdict?
Stellus Capital Investment Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Stellus Capital Investment Corporation re-screened for Shariah compliance?
Stellus Capital Investment Corporation (SCM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.