CMC

Commercial Metals Company

DOUBTFUL — SCREEN DOES NOT PASSstock

Is CMC Halal?

Steel production and recycling are permissible, but current debt/assets is above the examined financial limits.

What You Should Know

Commercial Metals manufactures, recycles and fabricates steel and metal products, including rebar and merchant steel used in construction. Its May 31, 2026 Form 10-Q reports assets of $9,796.355 million, interest-bearing debt of $3,400.485 million, cash of $559.759 million and accounts receivable of $1,391.195 million. Debt/assets is 34.71%, liquidity/assets is 5.71% and receivables-plus-cash/assets is 19.92%; all three examined asset-based methods fail on debt. The filing reports interest expense but no reproducible gross non-compliant-income numerator.

⚠️ Concerns

  • Debt/assets is 34.71%, above the examined 33% limits
  • Mill expansion, acquisition and litigation obligations affect leverage
  • Steel prices and construction demand are cyclical
  • No reproducible gross non-compliant-income numerator is disclosed
  • Re-screen after the next filing or a material debt change

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-05-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
34.71%Above limit
Below 33.333% under FTSE Yasaar

3,400.485 / 9,796.355

Cash + interest-bearing securities / assets
5.71%Within limit
Below 33.333% under FTSE Yasaar

559.759 / 9,796.355

Receivables + cash / assets
19.92%Within limit
Below 50% under FTSE Yasaar

1,950.954 / 9,796.355

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 34.71%, above the examined 33.333% limit; liquidity/assets is 5.71% and receivables-plus-cash/assets is 19.92%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 34.71%, above the examined MSCI limit; the asset-based screen fails.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 34.71%, above the examined Malaysia limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed and reproducible historical market-cap series is not stored; the debt screen already fails.

Business-activity disclosure

Commercial Metals manufactures, recycles and fabricates steel and metal products, including rebar and merchant steel used in construction. Steel production and recycling are generally permissible, while end use, litigation and acquisition exposure require qualitative review.

Limitation: The filing does not allocate revenue by downstream end use or provide a universal prohibited-revenue or non-compliant-income numerator.

Purification

The filing reports interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Commercial Metals Company's May 31, 2026 Form 10-Q.
  • Debt combines current maturities of long-term debt of $88.792 million and long-term debt of $3,311.693 million.
  • Cash and cash equivalents are $559.759 million; restricted cash is excluded from the interest-bearing securities proxy.
  • Accounts receivable, net are $1,391.195 million.
  • The filing reports interest expense but no reproducible gross non-compliant-income numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

🧾
Own CMC? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track CMC and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →