Is Loop Industries, Inc. (LOOP) Halal?

NASDAQ Basic Materials Canada $66M
✓ HALAL
Confidence: 95/100
Loop Industries, Inc. (LOOP) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 4.8% against the AAOIFI threshold of 30%, Loop Industries, Inc. comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Specialty Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from February 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 4.8%
/ 30%
20.3%
/ 30%
1.0%
/ 30%
2.19%
/ 5%
✓ HALAL
DJIM 4.8%
/ 33%
20.3%
/ 33%
1.0%
/ 33%
2.19%
/ 5%
✓ HALAL
MSCI 16.6%
/ 33%
69.8%
/ 33%
3.4%
/ 33%
2.19%
/ 5%
✗ NOT HALAL
S&P 4.8%
/ 33%
20.3%
/ 33%
1.0%
/ 33%
2.19%
/ 5%
✓ HALAL
FTSE 16.6%
/ 33%
69.8%
/ 33%
3.4%
/ 50%
2.19%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.06
P/B Ratio
-9.0
EV/EBITDA
948.4
EV: $64M
Revenue
$11M
Growth: 65.4%
Beta
1.7
High volatility
Current Ratio
1.7

Profitability

Gross Margin 100.0%
Operating Margin -2877.9%
Net Margin -24.3%
Return on Assets (ROA) -2.7%

Cash Flow & Balance Sheet

Operating Cash Flow-$2M
Free Cash Flow-$3M
Total Debt$3M
Current Ratio1.7
Total Assets$19M

Price & Trading

Last Close$1.36
50-Day MA$1.27
200-Day MA$1.38
Avg Volume57K
Beta1.7
52-Week Range
$0.85
$2.29

About Loop Industries, Inc. (LOOP)

CEO
Mr. Daniel Solomita
Employees
40
Sector
Basic Materials
Industry
Specialty Chemicals
Country
Canada
Exchange
NASDAQ
Market Cap
$66M
Currency
USD

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into its base building block monomers. The company's technology depolymerizes plastic bottles, packaging, carpets, and clothing into dimethyl terephthalate and monoethylene glycol. Its polymerized monomers are used to create virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, containers for food, and other consumer products; and polyester fibers, including textiles, clothing, and apparel. Loop Industries, Inc. was founded in 2010 and is headquartered in Terrebonne, Canada.

Purification Calculator

As a halal stock with 2.19% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Loop Industries, Inc. (LOOP) halal to invest in?

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

Loop Industries, Inc.'s debt ratio is 4.8% 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 16.6%.

Does Loop Industries, Inc. require dividend purification?

Yes, Loop Industries, Inc. has an impermissible income ratio of 2.19%, which means 2.19% 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 Loop Industries, Inc.'s key financial metrics?

Loop Industries, Inc. has a market capitalization of $66M, and revenue of $11M. The company maintains a gross margin of 100.0% and a net margin of -24.3%.

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.