Is UFP INDUSTRIES INC (UFPI) Halal?

NASDAQ Basic Materials United States $5.1B
✓ HALAL
Confidence: 95/100
UFP INDUSTRIES INC (UFPI) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.7% against the AAOIFI threshold of 30%, UFP INDUSTRIES INC comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Lumber & Wood Production), 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 6.7%
/ 30%
17.8%
/ 30%
9.7%
/ 30%
0.61%
/ 5%
✓ HALAL
DJIM 6.7%
/ 33%
17.8%
/ 33%
9.7%
/ 33%
0.61%
/ 5%
✓ HALAL
MSCI 8.9%
/ 33%
23.6%
/ 33%
12.8%
/ 33%
0.61%
/ 5%
✓ HALAL
S&P 6.7%
/ 33%
17.8%
/ 33%
9.7%
/ 33%
0.61%
/ 5%
✓ HALAL
FTSE 8.9%
/ 33%
23.6%
/ 33%
12.8%
/ 50%
0.61%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
17.9
Forward: 14.6
EPS
$5.00
Dividend Yield
161.0%
Payout: 28.0%
P/B Ratio
1.7
EV/EBITDA
8.6
EV: $4.5B
Revenue
$6.3B
Growth: -9.0%
Beta
1.4
High volatility
Current Ratio
4.6

Profitability

Gross Margin 16.8%
Operating Margin 4.1%
Net Margin 4.7%
Return on Equity (ROE) 9.3%
Return on Assets (ROA) 5.6%

Cash Flow & Balance Sheet

Operating Cash Flow$546M
Free Cash Flow$276M
Total Debt$357M
Debt-to-Equity11.6
Current Ratio4.6
Total Assets$4.0B

Price & Trading

Last Close$90.68
50-Day MA$101.99
200-Day MA$97.89
Avg Volume364K
Beta1.4
52-Week Range
$84.82
$118.00

About UFP INDUSTRIES INC (UFPI)

CEO
Mr. William D. Schwartz Jr.
Employees
13,800
Website
Sector
Basic Materials
Industry
Lumber & Wood Production
Country
United States
Exchange
NASDAQ
Market Cap
$5.1B
Currency
USD

UFP Industries, Inc., together with its subsidiaries, designs, manufactures, and supplies wood and non-wood composites, and other materials in the United States and internationally. It operates through three segments: Retail, Construction, and Packaging. The Retail segment offers pressure-treated and fire-retardant products under the ProWood brand; lawn and garden products, such as wood and vinyl fencing and lattice, garden beds and planters, pergolas, picnic tables, and other landscaping products under the Outdoor Essentials brand; wood plastic composite; mineral based composite decking and related decking accessories, including aluminum railing systems, balusters, and post caps under the Surestone brand; customized and aluminum fencing; exterior siding, pattern, trim, and fascia products; and pre-painted and primed shiplap, and project boards. The Packaging segment designs, engineers, manufactures, and tests custom packaging products made of wood and metal; designs and manufactures pallets made of wood and heat-treated wood; and provides corrugate, foam, labels, strapping, and films. The Construction segment designs and manufactures roof trusses, cut-to-size dimensional and board lumber, plywood, and oriented strand board; designs and manufactures roof and floor trusses, wall panels, I-joists, lumber packages, and engineered wood components used to frame residential and light commercial projects. This segment also engages in the designing, manufacturing, and installing of customized interior fixtures, casework, and architectural millwork used in retail and commercial structures; designs, manufactures, and supplies wood forms and related products for residential building, non-residential building, distribution, and infrastructure verticals. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.

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 UFP INDUSTRIES INC (UFPI) halal to invest in?

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

UFP INDUSTRIES INC's debt ratio is 6.7% 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 8.9%.

Does UFP INDUSTRIES INC require dividend purification?

Yes, UFP INDUSTRIES 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 UFP INDUSTRIES INC's key financial metrics?

UFP INDUSTRIES INC has a market capitalization of $5.1B, trailing P/E ratio of 17.9, and revenue of $6.3B. The company maintains a gross margin of 16.8% and a net margin of 4.7%. Return on equity stands at 9.3%.

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.