Top 6 Shariah-Compliant Stocks in France

Written by Haider Saleem
Financial and Political Analyst | LinkedIn / X

France is home to some of Europe’s most prestigious multinational companies, from iconic luxury brands to pharmaceutical innovators. 

While headlines often spotlight French political unrest or eurozone challenges, the reality for investors tells a more nuanced story. Some large-cap French stocks have remained robust in profitability, innovation, and global competitiveness, and importantly for Muslim investors, they meet Shariah compliance standards.

This article identifies six such stocks listed in France, selected based on their strong Earnings Per Share (EPS) and confirmed halal status.

We’ll explore:

1)    How halal stock screening works
2)    Why EPS is a meaningful filter for Muslim investors
3)    Profiles of six standout Shariah-compliant French stocks
4)    The broader market context
5)    Final thoughts for halal-conscious investors

1. What Makes a Stock Halal?

To qualify as halal, a stock must pass both business activity and financial ratio screens. The AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) guidelines, widely used by Shariah-compliant platforms, stipulate.

• The core business must not involve prohibited (haram) sectors like alcohol, gambling, or conventional banking.
• Interest-bearing debt must not exceed 30% of the company’s market capitalization. 
• Total amount of interest-bearing securities and assets, whether short or long term, should not exceed 30% of the market capitalization of the company to be Shariah compliant.[3]

All companies listed below comply with these financial and ethical filters as of their most recent screening via Musaffa.

2. Why Use EPS as a Filter?

Earnings Per Share (EPS) is a core metric used by investors to gauge a company’s profitability on a per-share basis. It is calculated by dividing net income by the number of outstanding shares.[4]

For halal investors, EPS is particularly useful because:

·  It reflects real, operational profitability rather than gains from leverage or financial engineering.
·  A consistently rising EPS indicates sustainable business performance. 

3. Top 6 Halal-Compliant French Stocks by EPS

a) Hermès International SCA (RMS.PA)

EPS (2025): $43.87
A global symbol of luxury, Hermès consistently posts some of the highest EPS figures in France. Its pricing power, low debt structure, and focus on craftsmanship over mass production help it align well with both financial and ethical investing filters. With negligible interest income and minimal borrowings, Hermès passes Shariah screenings with ease.[5][11]

b) L’Oréal SA (OR.PA)

EPS (2025): $11.95
A global beauty powerhouse. The company’s overall revenue mix and debt ratios meet current Shariah criteria.[10][11]

c) Schneider Electric SE (SU.PA)

EPS (2025): €8.36
Specializing in energy management and automation, Schneider Electric benefits from the global transition toward electrification and digital infrastructure. Its high EPS reflects diversified revenue streams and disciplined cost controls. It avoids haram sectors entirely and maintains debt and interest income within Shariah-compliant thresholds.[6][11]

d) L’Air Liquide SA (AI.PA)

EPS (2025): $5.41
Air Liquide produces industrial gases for healthcare and clean energy, both permissible under Islamic finance principles. Strong operational performance and innovation in hydrogen and medical gases support its elevated EPS. Its debt and interest income levels fall well within AAOIFI’s thresholds.[8][11]

e)  EssilorLuxottica SA (EL.PA)

EPS (2025): $5.13
As the world’s largest optical company, EssilorLuxottica offers halal-aligned products such as eyeglasses and lenses. It enjoys strong global demand and high margins, pushing its EPS into competitive territory. The company’s balance sheet also shows low exposure to interest-based debt.[7][11]

f) Sanofi SA (SAN.PA)

EPS (2025): $4.59
One of Europe’s largest pharmaceutical groups. Its global footprint and strong research pipeline support consistently high EPS figures. The firm meets AAOIFI financial ratios and is commonly listed as compliant by Shariah screening platforms.[9][11]

4. Market Snapshot: France’s Mixed Economic Climate

Despite economic headwinds in Europe, France’s top-performing companies have shown resilience. The CAC 40 Index recently rose by 0.2% to 7804.33, with large caps like Publicis Groupe and Capgemini leading gains. Meanwhile, yields on 10-year French government bonds fell to 3.214%, indicating cautious optimism in financial markets.[1]

However, challenges remain. According to the Financial Times, hedge funds are targeting distressed French firms as rising interest rates and post-COVID debt burdens push many private equity-owned companies toward restructuring. Sectors like retail and telecoms are especially vulnerable.[2]

In contrast, the six companies listed here are established players with strong balance sheets and global exposure, offering some insulation from domestic volatility.

5. Final Thoughts: Long-Term Halal Potential

These six French stocks demonstrate that halal investing doesn’t mean compromising on quality or profitability. Their high EPS figures reflect solid underlying businesses that also meet rigorous Shariah screening standards.

Still, halal compliance is not static. Companies can shift their financial practices or enter new markets, so regular re-screening is essential.[3] While this list offers a snapshot of current leaders, halal-conscious investors are encouraged to monitor these firms over time.

For those exploring opportunities beyond traditional markets, these stocks may serve as strong candidates for diversified, ethical portfolios.

References

[1] Dow Jones Newswires, “French Stocks Climb 0.2%”, June 10, 2025
[2] Financial Times, “Hedge Funds Put Distressed French Groups in Their Sights”, June 10, 2025
[3] AAOIFI, Shariah Standard No. 21: Financial Papers (Shares & Bonds)
[4] Investopedia, “Earnings Per Share (EPS)”, https://www.investopedia.com/terms/e/eps.asp
[5] Hermès Annual Report 2024, https://finance.hermes.com
[6] Schneider Electric Financials 2024, https://www.se.com
[7] EssilorLuxottica Investor Center, https://www.essilorluxottica.com
[8] Air Liquide 2024 Results, https://www.airliquide.com
[9] Sanofi Investors Page, https://www.sanofi.com
[10] L’Oréal Finance Reports, https://www.loreal-finance.com
[11] Musaffa Stock Screenings, https://musaffa.com/stocks

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