The Short Answer
US Lime & Minerals stock (USLM) is considered halal under standard Sharia screening. Producing lime and mineral products is a clearly permissible activity with no haram revenue line of its own, and the company is notable for a conservative, typically low-debt balance sheet that makes the leverage screen straightforward.
Total debt / market cap should still be confirmed against the 33% threshold using the latest filings, but it has generally screened comfortably within range. The main residual item is interest income on its sizable cash balance, which should be checked against the 5% threshold and the corresponding portion of returns purified.
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)
US Lime & Minerals' Business Activity
United States Lime & Minerals, Inc. mines limestone and produces lime products. Its activity is:
- Lime products: Quicklime and hydrated lime for construction and industry
- Limestone: Pulverized and sized limestone for agricultural and industrial use
- Environmental uses: Lime for flue-gas treatment and water treatment
Producing lime and mineral products is a clearly permissible activity with no haram revenue line of its own.
Why USLM Is Halal
1. Permissible Core Business
Lime and mineral production is a halal materials business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Conservative, Low-Debt Balance Sheet
USLM is known for a conservative, typically low-debt balance sheet, which makes the leverage screen straightforward. Confirm total debt / market cap under the 33% threshold on the latest filings — it has generally screened comfortably within range.
3. Interest on Cash to Purify
USLM holds a sizable cash balance that earns interest income, which should be checked against the 5% threshold and the corresponding portion of returns purified. As a materials producer, results are cyclical with construction, industrial, and agricultural demand.
Financial Ratios (2025)
Based on US Lime & Minerals' most recent financial statements:
- Total Debt / Market Cap: Typically low — confirm under 33% ✅/⚠️
- Interest Income / Revenue: Verify cash-interest income against 5% and purify ⚠️
- Haram Revenue: None material — lime and minerals ✅
- Business Activity: Permissible — materials production ✅
Verdict from Major Screening Agencies
US Lime & Minerals stock is generally screened as halal by:
- Zoya App — Typically compliant on a low-debt balance sheet ✅
- Musaffa — Generally compliant, verify cash-interest purification ⚠️
- Most major Sharia advisory boards — Permissible activity, low leverage ✅
Bottom Line
US Lime & Minerals (USLM) is halal for Muslim investors. The lime-and-minerals business is permissible and the balance sheet is conservative; confirm total debt / market cap under 33% on the latest filings, and purify the portion of returns attributable to interest income on the company's sizable cash balance. Note that USLM is cyclical with construction, industrial, and agricultural demand.
For Muslim investors seeking building-materials exposure, compare USLM with peers like Knife River (KNF), Arcosa (ACA), and Commercial Metals (CMC).
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