PKG2

Packaging Corporation (PCG)

HALAL — SCREEN DOES NOT PASSstock

Is PKG2 Halal?

Cardboard packaging — permissible materials.

What You Should Know

PCG manufactures corrugated packaging and paperboard. Core packaging manufacturing is permissible. The March 31, 2026 filing for current issuer PKG shows 36.88% debt/assets, 5.71% liquidity/assets and 16.08% receivables-plus-cash/assets; the preserved PKG2 route remains quantitatively failed on debt.

⚠️ Concerns

  • Cyclical paper demand
  • Marketable debt securities
  • PKG2 is a preserved alias for current PKG
  • Debt/assets exceeds the examined 33.333% limits

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
36.88%Above limit
Below 33.333% under FTSE Yasaar

3,974.7 / 10,777.9

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

615.5 / 10,777.9

Receivables + cash / assets
16.08%Within limit
Below 50% under FTSE Yasaar

1,733 / 10,777.9

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

Debt/assets is 36.88%, above the 33.333% limit; liquidity/assets is 5.71% and receivables-plus-cash/assets is 16.08%.

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

Debt/assets is 36.88%, above the examined 33.33% total-assets limit; liquidity and receivables-plus-cash remain below their limits. This is not an index-membership claim.

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

Debt/assets is 36.88%, above the examined Malaysia limit; identifiable liquidity/assets is below its 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 licensed historical market-cap series is not stored; the asset-based screens fail on debt/assets.

Business-activity disclosure

Packaging Corporation of America manufactures corrugated packaging, containerboard and paper products. The core manufacturing activity is generally permissible under the retained qualitative analysis, while paper end uses and supply-chain impacts require review.

Limitation: No universal prohibited-revenue allocation is inferred from packaging, paper, customer or end-use disclosures.

Purification

Interest income is not separately disclosed and activity allocation remains incomplete; no fixed purification percentage is prescribed.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Packaging Corporation of America's March 31, 2026 Form 10-Q; the existing PKG2 route is retained as an alias for the current PKG issuer.
  • Debt includes $3,968.1 million long-term debt and $6.6 million finance-lease obligations; operating leases are excluded. Cash is $397.1 million. Short-term marketable debt securities of $146.6 million and long-term marketable debt securities of $71.8 million are included as identifiable interest-bearing securities.
  • Accounts receivable is $1,335.9 million and quarterly net sales are $2,367.8 million.
  • Interest income and a scholar-universal prohibited-revenue numerator are not separately disclosed for packaging and paper products.

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.

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