The Short Answer
Commercial Metals stock (CMC) is currently doubtful on the stored quantitative screen. Producing and fabricating steel is generally permissible, but the latest filing shows debt/assets above the examined limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-31; calculated 2026-07-15.
3,400.485 / 9,796.355
559.759 / 9,796.355
1,950.954 / 9,796.355
- 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%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.71%, above the examined MSCI limit; the asset-based screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.71%, above the examined Malaysia limit; this is not an official classification.
- 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.
The current filing-based analysis treats the financial result as doubtful. Steel manufacturing and recycling remain qualitatively permissible, but debt/assets fails under FTSE, MSCI and Malaysia-style asset-based methods.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Commercial Metals' Business Activity
Commercial Metals Company manufactures, recycles, and fabricates steel products. Its activity is:
- Steel mills: Producing rebar and merchant steel from recycled scrap
- Fabrication: Cutting and bending steel for construction projects
- Recycling: Processing ferrous and nonferrous scrap metal
Producing and fabricating steel is a clearly permissible activity with no haram revenue line of its own.
Why CMC Is Halal
1. Permissible Core Business
Steelmaking and fabrication is a halal manufacturing business that serves construction. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Commercial Metals carries mill- and expansion-related debt, so total debt / market cap is the main screen. Confirm it sits under the 33% threshold on the latest filings before investing — it has generally screened within range.
3. Interest on Cash to Purify
Incidental interest income on cash should be checked against the 5% threshold and the corresponding small portion of returns purified. As a steelmaker, CMC's results are cyclical with construction activity and steel prices.
Current Filing-Based Quantitative Screen
Commercial Metals' May 31, 2026 Form 10-Q reports the following transparent total-assets proxies:
- Debt / assets: 34.71% — above the examined 33.333% limits ❌
- Liquidity / assets: 5.71% — below the examined limits ✅
- Receivables + cash / assets: 19.92% — below the examined limits ✅
- Business activity: Steel and recycling are generally permissible; downstream end use remains qualitative ⚠️
Methodology Interpretation
The stored record applies transparent total-assets proxies for FTSE Yasaar, MSCI Islamic and Malaysia SAC-style tests. All three fail on debt. No reproducible gross non-compliant-income numerator is disclosed, and no third-party app classification is asserted.
- FTSE Yasaar-style asset tests: fail on debt
- MSCI Islamic-style asset tests: fail on debt
- Malaysia SAC-style ratios: fail on debt; not an official classification
- Market-cap denominator: not calculated from a reproducible licensed series
Bottom Line
Commercial Metals (CMC) is doubtful in the current filing-based analysis. The steel-and-recycling business is permissible, but debt/assets is 34.71%, above the examined asset-based limits. Re-screen after the next filing as mill expansion, acquisitions and debt change.
For Muslim investors seeking metals exposure, compare CMC with peers like Reliance (RS), Arcosa (ACA), and US Lime & Minerals (USLM).
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