Is Installed Building Products, Inc. (IBP) Halal?

NYSE Consumer Cyclical United States $7.1B
✓ HALAL
Confidence: 95/100
Installed Building Products, Inc. (IBP) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 11.9% against the AAOIFI threshold of 30%, Installed Building Products, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Residential Construction), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 11.9%
/ 30%
4.0%
/ 30%
5.3%
/ 30%
0.14%
/ 5%
✓ HALAL
DJIM 11.9%
/ 33%
4.0%
/ 33%
5.3%
/ 33%
0.14%
/ 5%
✓ HALAL
MSCI 47.5%
/ 33%
15.9%
/ 33%
21.1%
/ 33%
0.14%
/ 5%
✗ NOT HALAL
S&P 11.9%
/ 33%
4.0%
/ 33%
5.3%
/ 33%
0.14%
/ 5%
✓ HALAL
FTSE 47.5%
/ 33%
15.9%
/ 33%
21.1%
/ 50%
0.14%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
27.0
Forward: 21.5
EPS
$9.71
Dividend Yield
126.0%
Payout: 32.8%
P/B Ratio
9.9
EV/EBITDA
15.5
EV: $7.7B
Revenue
$3.0B
Growth: -0.4%
Beta
1.9
High volatility
Current Ratio
3.0

Profitability

Gross Margin 34.0%
Operating Margin 14.6%
Net Margin 8.9%
Return on Equity (ROE) 37.5%
Return on Assets (ROA) 11.8%

Cash Flow & Balance Sheet

Operating Cash Flow$371M
Free Cash Flow$301M
Total Debt$992M
Debt-to-Equity139.7
Current Ratio3.0
Total Assets$2.1B

Price & Trading

Last Close$264.98
50-Day MA$303.56
200-Day MA$258.66
Avg Volume339K
Beta1.9
52-Week Range
$150.83
$349.00

About Installed Building Products, Inc. (IBP)

CEO
Mr. Jeffrey W. Edwards
Employees
10,400
Sector
Consumer Cyclical
Industry
Residential Construction
Country
United States
Exchange
NYSE
Market Cap
$7.1B
Currency
USD

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufacturing Operations. It offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; basic sliding door and complex custom designs; and standard and custom designed mirrors, as well as shower doors, and closet shelving systems. Further, it installs and services garage doors and openers, including steel, aluminum, wood, and vinyl garage doors, as well as opener systems; installs waterproofing and caulking and moisture protection systems; offers sheet and hot applied waterproofing membrane, deck coating, bentonite, and air and vapor systems; and provides rain gutters installation services. Additionally, the company provides fire-stopping systems, including fire-rated joint assemblies, perimeter fire containment, and smoke and fire containment systems installation services; and cordless blinds, shades, and shutters installation, as well as other complementary building products for new construction, repair, remodel, and commercial projects. It also distributes products and materials purchased wholesale from manufacturers, such as spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation; and insulation products, including equipment, machines, and services. The company was formerly known as CCIB Holdco, Inc. The company was founded in 1977 and is based in Columbus, Ohio.

Purification Calculator

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Frequently Asked Questions

Is Installed Building Products, Inc. (IBP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Installed Building Products, 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 Installed Building Products, Inc.'s debt ratio?

Installed Building Products, Inc.'s debt ratio is 11.9% 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 47.5%.

Does Installed Building Products, Inc. require dividend purification?

Yes, Installed Building Products, Inc. has an impermissible income ratio of 0.14%, which means 0.14% 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 Installed Building Products, Inc.'s key financial metrics?

Installed Building Products, Inc. has a market capitalization of $7.1B, trailing P/E ratio of 27.0, and revenue of $3.0B. The company maintains a gross margin of 34.0% and a net margin of 8.9%. Return on equity stands at 37.5%.

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.