The Short Answer
Knife River stock (KNF) is currently doubtful on the stored quantitative screen. Producing construction materials is generally permissible, but the latest filing shows debt/assets above the examined financial limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
1,433.328 / 3,817.863
75.458 / 3,817.863
379.927 / 3,817.863
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.54%, above the examined 33.333% limit; liquidity/assets is 1.98% and receivables-plus-cash/assets is 9.95%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.54%, above the examined MSCI limit; the asset-based screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.54%, 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
Knife River produces aggregates, ready-mix concrete and asphalt and provides related contracting services, mainly for public infrastructure. These activities are generally permissible, while project claims, environmental obligations and acquisition integration 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 net of immaterial interest income but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Knife River's March 31, 2026 Form 10-Q.
- Debt combines current long-term debt of $11.708 million and long-term debt of $1,421.620 million.
- Cash, cash equivalents and restricted cash are $75.458 million; no separate interest-bearing securities balance is identified.
- The receivable proxy combines receivables of $227.281 million and contract assets of $77.188 million.
- The filing reports interest expense net of immaterial interest income 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. The aggregates and contracting business remains 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)
Knife River's Business Activity
Knife River Corporation is a building-materials company in the central and western United States. Its activity is:
- Aggregates: Mining and selling crushed stone, sand, and gravel
- Ready-mix and asphalt: Producing ready-mix concrete and asphalt
- Contracting services: Related construction and paving work
Producing construction materials is a clearly permissible activity with no haram revenue line of its own.
Why KNF Is Halal
1. Permissible Core Business
Aggregates and materials production is a halal building-materials business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Knife River carries spinoff- and acquisition-related debt, so total debt / market cap is the main screen. Confirm it sits under the 33% threshold on the latest filings before investing.
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 an aggregates-led producer, results are cyclical and seasonal with construction and infrastructure demand.
Current Filing-Based Quantitative Screen
Knife River's March 31, 2026 Form 10-Q reports the following transparent total-assets proxies:
- Debt / assets: 37.54% — above the examined 33.333% limits ❌
- Liquidity / assets: 1.98% — below the examined limits ✅
- Receivables + cash / assets: 9.95% — below the examined limits ✅
- Business activity: Aggregates and contracting are generally permissible; project exposure 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
Knife River (KNF) is doubtful in the current filing-based analysis. The building-materials business is permissible, but debt/assets is 37.54%, above the examined asset-based limits. Re-screen after the next filing as spinoff and acquisition debt changes.
For Muslim investors seeking building-materials exposure, compare KNF with peers like Arcosa (ACA), Construction Partners (ROAD), and US Lime & Minerals (USLM).
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