Is COMMERCIAL METALS Co (CMC) Halal?
Shariah Screening — 5 Standards
Based on financial data from August 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 18.7% / 30% | 14.4% / 30% | 16.6% / 30% | 4.7% / 5% | ✓ HALAL |
| DJIM | 18.7% / 33% | 14.4% / 33% | 16.6% / 33% | 4.7% / 5% | ✓ HALAL |
| MSCI | 18.9% / 33% | 14.5% / 33% | 16.8% / 33% | 4.7% / 5% | ✓ HALAL |
| S&P | 18.7% / 33% | 14.4% / 33% | 16.6% / 33% | 4.7% / 5% | ✓ HALAL |
| FTSE | 18.9% / 33% | 14.5% / 33% | 16.8% / 50% | 4.7% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 16.5% | |
| Operating Margin | 10.6% | |
| Net Margin | 5.5% | |
| Return on Equity (ROE) | 10.5% | |
| Return on Assets (ROA) | 4.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $715M |
| Free Cash Flow | $312M |
| Total Debt | $1.4B |
| Debt-to-Equity | 77.7 |
| Current Ratio | 4.5 |
| Total Assets | $7.2B |
Price & Trading
| Last Close | $59.48 |
| 50-Day MA | $72.53 |
| 200-Day MA | $62.32 |
| Avg Volume | 1.2M |
| Beta | 1.4 |
|
52-Week Range
$37.92
| |
About COMMERCIAL METALS Co (CMC)
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through three segments: North America Steel Group; Europe Steel Group; and Emerging Businesses Group. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. It also manufactures and sells finished long steel products, including reinforcing bar, merchant bar, light structural, wire rod, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it sells wire meshes, welded steel mesh, wire rod, cold rolled rebar, cold rolled wire rod, assembled rebar cages and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.
Purification Calculator
As a halal stock with 4.70% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is COMMERCIAL METALS Co (CMC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), COMMERCIAL METALS Co is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is COMMERCIAL METALS Co's debt ratio?
COMMERCIAL METALS Co's debt ratio is 18.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 18.9%.
Does COMMERCIAL METALS Co require dividend purification?
Yes, COMMERCIAL METALS Co has an impermissible income ratio of 4.70%, which means 4.70% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are COMMERCIAL METALS Co's key financial metrics?
COMMERCIAL METALS Co has a market capitalization of $6.5B, trailing P/E ratio of 13.0, and revenue of $7.8B. The company maintains a gross margin of 16.5% and a net margin of 5.5%. Return on equity stands at 10.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.