Is MERCER INTERNATIONAL INC. (MERC) Halal?

NASDAQ Basic Materials Canada $90M
✗ NOT HALAL
Confidence: 90/100
MERCER INTERNATIONAL INC. (MERC) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 1444.7% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. MERCER INTERNATIONAL INC. operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1444.7%
/ 30%
166.0%
/ 30%
265.6%
/ 30%
11.47%
/ 5%
✗ NOT HALAL
DJIM 1444.7%
/ 33%
166.0%
/ 33%
265.6%
/ 33%
11.47%
/ 5%
✗ NOT HALAL
MSCI 79.6%
/ 33%
9.2%
/ 33%
14.6%
/ 33%
11.47%
/ 5%
✗ NOT HALAL
S&P 1444.7%
/ 33%
166.0%
/ 33%
265.6%
/ 33%
11.47%
/ 5%
✗ NOT HALAL
FTSE 79.6%
/ 33%
9.2%
/ 33%
14.6%
/ 50%
11.47%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-7.44
Dividend Yield
1604.0%
Payout: 15.7%
P/B Ratio
1.3
EV/EBITDA
-76.8
EV: $1.5B
Revenue
$1.9B
Growth: -8.0%
Beta
0.7
Low volatility
Current Ratio
3.1

Profitability

Gross Margin 4.9%
Operating Margin -13.9%
Net Margin -26.7%
Return on Equity (ROE) -200.0%
Return on Assets (ROA) -5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$9M
Free Cash Flow-$80M
Total Debt$1.6B
Debt-to-Equity2388.7
Current Ratio3.1
Total Assets$2.0B

Price & Trading

Last Close$1.30
50-Day MA$1.84
200-Day MA$2.53
Avg Volume601K
Beta0.7
52-Week Range
$1.23
$6.18

About MERCER INTERNATIONAL INC. (MERC)

CEO
Mr. Juan Carlos Bueno
Employees
3,545
Sector
Basic Materials
Industry
Paper & Paper Products
Country
Canada
Exchange
NASDAQ
Market Cap
$90M
Currency
USD

Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp in the United States, Germany, China, and internationally. It operates through two segments, Pulp and Solid Wood. The company manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills. It also manufactures, distributes, and sells lumber, cross and glue laminated timber, finger joint lumber, wood pallets, electricity, biofuels, and wood residuals. In addition, the company generates and sells green energy produced from biomass cogeneration power plants. Further, it produces and sells NBSK pulp manufactured from softwood; green energy using carbon neutral biofuels, such as black liquor and wood waste; tall oil from black liquor for use as a chemical additive and green energy source; wood pellets and briquettes; lignin; and wood procurement and logistics services. The company sells its pulp products to pulp markets, integrated paper and paperboard manufacturers; and lumber products to national and regional distributors, large construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was incorporated in 1968 and is headquartered in Vancouver, Canada.

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Frequently Asked Questions

Is MERCER INTERNATIONAL INC. (MERC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), MERCER INTERNATIONAL INC. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is MERCER INTERNATIONAL INC.'s debt ratio?

MERCER INTERNATIONAL INC.'s debt ratio is 1444.7% 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 79.6%.

What are MERCER INTERNATIONAL INC.'s key financial metrics?

MERCER INTERNATIONAL INC. has a market capitalization of $90M, and revenue of $1.9B. The company maintains a gross margin of 4.9% and a net margin of -26.7%. Return on equity stands at -200.0%.

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.