The Short Answer
RPM International stock (RPM) is currently classified as HALAL in the qualitative catalog, but the current filing-based quantitative result does not pass the examined debt/assets limit. RPM manufactures specialty coatings, sealants, building materials, and related products for industrial and consumer markets.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-02-28; calculated 2026-07-15.
2,889.949 / 7,884.654
294.206 / 7,884.654
1,517.601 / 7,884.654
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.65%, above the examined 33.333% limit; liquidity/assets is 3.73% and receivables-plus-cash/assets is 19.25%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.65%, above the examined MSCI 33.33% limit; liquidity and receivables-plus-cash remain below their limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 36.65%, above the examined Malaysia limit; identifiable liquidity/assets is 3.73%. This is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; asset-based debt screening already fails.
Business-activity disclosure
RPM manufactures specialty coatings, sealants, building materials and related products. The core manufacturing activity is generally permissible, while end-market allocation remains qualitative.
Limitation: The filing does not provide a universal prohibited-revenue numerator or gross interest-income numerator.
Purification
Gross interest income is not separately disclosed; no fixed scholar-approved purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from RPM International's February 28, 2026 Form 10-Q for the nine months ended that date.
- Conservative debt combines $2,547.104 million long-term debt and capital-lease obligations with $342.845 million operating-lease liabilities.
- Cash is $294.206 million, net accounts receivable is $1,223.395 million and nine-month revenue is $1,607.949 million.
- The filing reports net interest expense and dividend income but does not separately disclose a gross interest-income numerator.
- Coatings, sealants and construction products are generally permissible; no universal prohibited-revenue numerator is asserted.
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.
Specialty-coatings manufacturing, sealants-and-adhesives manufacturing, and building-and-construction-products manufacturing are generally permissible at the activity level. The current filing shows debt/leases above the examined limit, with income and prohibited-revenue fields incomplete.
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)
RPM's Business Activity
RPM operates through reporting segments including Construction Products Group, Performance Coatings Group, Consumer Group, and Specialty Products Group. Its well-known brands include:
- Rust-Oleum: Consumer rust-prevention and home-improvement coatings
- DAP: Sealants, caulks, and adhesives
- Tremco & Carboline: Protective-and-industrial coatings and roofing-and-waterproofing systems
- Zinsser: Primers and specialty coatings
Manufacturing physical specialty chemicals, coatings, and construction products is a permissible industrial activity.
Concerns to Be Aware Of
1. Leverage Profile
This is the primary Sharia-screening consideration. RPM's February 28, 2026 filing shows debt/leases at 36.65% of total assets, above the examined asset-based limits.
2. Minor Interest Income
Minor interest income on cash and short-term investment balances means purification of a small portion of dividends may be advisable.
3. Input-Cost Volatility
Raw-material (resin, solvent, pigment, and other petrochemical-derivative feedstock) input-cost volatility, along with construction-and-consumer-demand cycles, can drive earnings volatility. These are business-cycle considerations rather than Sharia screen concerns.
Filing-Based Ratios (February 28, 2026)
Based on RPM's latest Form 10-Q:
- Debt / Total Assets: 36.65% — above examined limits ⚠️
- Liquidity / Total Assets: 3.73% ✅
- Receivables + Cash / Total Assets: 19.25% ✅
- Gross Interest Income: Not separately disclosed — purification remains incomplete ⚠️
- Prohibited-Product Revenue: No universal numerator disclosed — qualitative review required ⚠️
Methodology Interpretation
The current filing-based asset screen fails on debt/assets under the examined FTSE, MSCI and Malaysia-style limits. The qualitative manufacturing activity remains generally permissible, but this is not an index-membership claim and no fixed purification percentage is asserted.
- Core activity: Specialty coatings, sealants and building products
- Quantitative status: Debt fails; other known ratios pass
- Scholar review: Confirm treatment of income and end-market allocation
Bottom Line
RPM International Inc. (RPM) has a generally permissible core manufacturing activity, but the current filing-based result is not passing because conservative debt/leases are 36.65% of assets. Gross interest income and prohibited-revenue allocation also remain incomplete.
For Muslim investors seeking specialty-materials and building-products exposure, RPM sits alongside other halal-screened names like Sherwin-Williams (SHW) and Vulcan Materials (VMC).
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