Is GRANITE CONSTRUCTION INC (GVA) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 27.8% / 30% | 13.6% / 30% | 16.1% / 30% | 0.61% / 5% | ✓ HALAL |
| DJIM | 27.8% / 33% | 13.6% / 33% | 16.1% / 33% | 0.61% / 5% | ✓ HALAL |
| MSCI | 37.2% / 33% | 18.2% / 33% | 21.5% / 33% | 0.61% / 5% | ✗ NOT HALAL |
| S&P | 27.8% / 33% | 13.6% / 33% | 16.1% / 33% | 0.61% / 5% | ✓ HALAL |
| FTSE | 37.2% / 33% | 18.2% / 33% | 21.5% / 50% | 0.61% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 16.1% | |
| Operating Margin | 3.4% | |
| Net Margin | 4.4% | |
| Return on Equity (ROE) | 19.2% | |
| Return on Assets (ROA) | 5.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $469M |
| Free Cash Flow | $331M |
| Total Debt | $1.5B |
| Debt-to-Equity | 122.6 |
| Current Ratio | 1.2 |
| Total Assets | $4.0B |
Price & Trading
| Last Close | $118.83 |
| 50-Day MA | $125.81 |
| 200-Day MA | $110.03 |
| Avg Volume | 640K |
| Beta | 1.3 |
|
52-Week Range
$69.08
| |
About GRANITE CONSTRUCTION INC (GVA)
Granite Construction Incorporated provides infrastructure solutions for public and private clients in the United States. It operates through Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure and site development, mining, public safety, tunnel, solar, battery storage, and power related projects. The Materials segment produces and delivers aggregates, asphalt concrete, liquid asphalt, and recycled materials for internal use in construction projects and sale to third parties. It also provides site preparation, mining, and infrastructure services for railways, residential development, energy development, and commercial and industrial sites; produces construction materials; and provides construction management professional services, as well as owns and leases aggregate reserves and processing plants. The company serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.
Purification Calculator
As a halal stock with 0.61% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is GRANITE CONSTRUCTION INC (GVA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), GRANITE CONSTRUCTION INC 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 GRANITE CONSTRUCTION INC's debt ratio?
GRANITE CONSTRUCTION INC's debt ratio is 27.8% 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 37.2%.
Does GRANITE CONSTRUCTION INC require dividend purification?
Yes, GRANITE CONSTRUCTION INC has an impermissible income ratio of 0.61%, which means 0.61% 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 GRANITE CONSTRUCTION INC's key financial metrics?
GRANITE CONSTRUCTION INC has a market capitalization of $5.2B, trailing P/E ratio of 30.6, and revenue of $4.4B. The company maintains a gross margin of 16.1% and a net margin of 4.4%. Return on equity stands at 19.2%.
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.