Is STEEL DYNAMICS INC (STLD) Halal?

NASDAQ Basic Materials United States $25.0B
✓ HALAL
Confidence: 95/100
STEEL DYNAMICS INC (STLD) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 15.9% against the AAOIFI threshold of 30%, STEEL DYNAMICS INC comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Steel), 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 15.9%
/ 30%
2.9%
/ 30%
6.3%
/ 30%
0.2%
/ 5%
✓ HALAL
DJIM 15.9%
/ 33%
2.9%
/ 33%
6.3%
/ 33%
0.2%
/ 5%
✓ HALAL
MSCI 25.6%
/ 33%
4.7%
/ 33%
10.2%
/ 33%
0.2%
/ 5%
✓ HALAL
S&P 15.9%
/ 33%
2.9%
/ 33%
6.3%
/ 33%
0.2%
/ 5%
✓ HALAL
FTSE 25.6%
/ 33%
4.7%
/ 33%
10.2%
/ 50%
0.2%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
21.4
Forward: 10.9
EPS
$7.98
Dividend Yield
119.0%
Payout: 25.0%
P/B Ratio
2.8
EV/EBITDA
14.0
EV: $28.4B
Revenue
$18.2B
Growth: 14.0%
Beta
1.4
High volatility
Current Ratio
3.1

Profitability

Gross Margin 13.2%
Operating Margin 7.0%
Net Margin 6.5%
Return on Equity (ROE) 13.3%
Return on Assets (ROA) 5.9%

Cash Flow & Balance Sheet

Operating Cash Flow$1.4B
Free Cash Flow$502M
Total Debt$4.2B
Debt-to-Equity49.1
Current Ratio3.1
Total Assets$16.4B

Price & Trading

Last Close$174.42
50-Day MA$184.28
200-Day MA$155.05
Avg Volume1.3M
Beta1.4
52-Week Range
$103.17
$208.47

About STEEL DYNAMICS INC (STLD)

CEO
Mr. Mark D. Millett
Employees
14,400
Sector
Basic Materials
Industry
Steel
Country
United States
Exchange
NASDAQ
Market Cap
$25.0B
Currency
USD

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through four segments: Steel Operations, Metals Recycling Operations, Steel Fabrication Operations, and Aluminum Operations. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, large unequal leg angles, and reinforcing steel bars, standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agricultural equipment, energy, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, joist girders, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, property owners, brokers, and governmental entities. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was incorporated in 1993 and is headquartered in Fort Wayne, Indiana.

Purification Calculator

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Frequently Asked Questions

Is STEEL DYNAMICS INC (STLD) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), STEEL DYNAMICS 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 STEEL DYNAMICS INC's debt ratio?

STEEL DYNAMICS INC's debt ratio is 15.9% 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 25.6%.

Does STEEL DYNAMICS INC require dividend purification?

Yes, STEEL DYNAMICS INC has an impermissible income ratio of 0.20%, which means 0.20% 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 STEEL DYNAMICS INC's key financial metrics?

STEEL DYNAMICS INC has a market capitalization of $25.0B, trailing P/E ratio of 21.4, and revenue of $18.2B. The company maintains a gross margin of 13.2% and a net margin of 6.5%. Return on equity stands at 13.3%.

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.