The Short Answer
UFP Industries stock (UFPI) is halal on the stored known-ratio screen, with a methodology caveat. The March 28, 2026 filing shows low debt, but the conservative receivables-plus-cash proxy is 33.79%, just above the examined MSCI 33.33% limit.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-28; calculated 2026-07-15.
234.337 / 4,031.814
769.983 / 4,031.814
1,362.223 / 4,031.814
5.433 / 1,461.267
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 5.81%, liquidity is 19.10%, receivables plus cash is 33.79% and disclosed income/revenue is 0.37%, within examined FTSE limits; activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables plus cash is 33.79%, slightly above the examined 33.33% total-assets limit; debt and liquidity are below their limits.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 5.81% and liquidity is 19.10%, below the examined 33% limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and activity classification remains incomplete.
Business-activity disclosure
UFP Industries manufactures wood, composite and other products for construction, packaging and retail markets. These are generally permissible industrial activities, subject to customer and product mix review.
Limitation: The filing does not provide a universal prohibited-revenue numerator for customer end uses or a scholar-specific activity classification.
Purification
The filing discloses $5.433 million of interest income (0.37% of quarterly revenue), but no scholar-approved fixed purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from UFP Industries' thousands-of-dollars presentation for March 28, 2026.
- Debt includes $6.027 million current and $228.310 million long-term debt/finance-lease obligations; operating leases are excluded.
- Cash is $714.453 million. Identified fixed-income funds ($55.184 million) and treasury securities ($0.346 million) are included conservatively as interest-bearing securities.
- Accounts receivable is $647.770 million, quarterly revenue is $1,461.267 million and disclosed interest income is $5.433 million.
- The 33.79% receivables-plus-cash ratio sits just above the examined MSCI 33.33% total-assets threshold; methodologies differ.
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.
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)
UFP Industries' Business Activity
UFP Industries, Inc. is a holding company for a portfolio of wood- and composite-products businesses. Its activity is:
- Retail: Treated lumber, decking, and outdoor products sold through retailers (Deckorators, ProWood)
- Packaging: Industrial packaging, crating, and protective solutions
- Construction: Structural components, trusses, and site-built products
Manufacturing wood and building products is a clearly permissible activity with no haram revenue line of its own.
Why UFPI Is Halal
1. Permissible Core Business
Making wood, composite, and packaging products is a halal manufacturing business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Low Debt Makes the Leverage Screen Easy
UFP reports $234.337 million of interest-bearing debt against $4,031.814 million of assets, or 5.81%. That known debt proxy passes the examined FTSE Yasaar, MSCI and Malaysia limits.
3. Interest Income Is the Main Item to Purify
UFP reports cash of $714.453 million and identified fixed-income funds and treasury securities of $55.530 million. The conservative liquidity proxy is 19.10%, while receivables plus cash is 33.79%; methodologies therefore differ.
Current Filing-Based Quantitative Screen
Based on UFP Industries' March 28, 2026 Form 10-Q:
- Debt / Assets: 5.81% — below the examined limits ✅
- Liquidity / Assets: 19.10% — below the examined limits ✅
- Receivables + Cash / Assets: 33.79% — just above the examined MSCI limit ⚠️
- Disclosed interest income / revenue: 0.37%; purification remains scholar-dependent ⚠️
Methodology Interpretation
UFPI is methodology-dependent: the known financial ratios pass FTSE Yasaar and Malaysia proxies, while the examined MSCI receivables-plus-cash proxy is 33.79%. Activity classification remains incomplete.
- FTSE Yasaar asset screen — financial PASS
- MSCI total-assets proxy — financial FAIL on receivables plus cash
- Malaysia SAC asset ratios — financial PASS
Bottom Line
UFP Industries (UFPI) is halal on the stored known-ratio screen, with methodology-dependent results. Its core building-products business is generally permissible and debt is low, but the receivables-plus-cash proxy is 33.79% under the conservative MSCI test. Disclosed interest income is 0.37% of quarterly revenue, and no fixed purification percentage is inferred.
For Muslim investors seeking building-products exposure, compare UFPI with peers like Builders FirstSource (BLDR), Trex (TREX), and Louisiana-Pacific-style wood producers.
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