What is Friedman Industries, Incorporated's Shariah compliance score?

Friedman Industries, Incorporated (FRD) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Friedman Industries, Incorporated pass AAOIFI screening?

Friedman Industries, Incorporated (FRD) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. FRD's debt-to-market-cap is 35.7%.

How much purification is needed for Friedman Industries, Incorporated?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Friedman Industries, Incorporated (FRD) using the latest financial data.

Where can I screen Friedman Industries, Incorporated for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Friedman Industries, Incorporated (FRD) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

FRDNot HalalF

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FRD: Is Friedman Industries, Incorporated Halal?

Friedman Industries, Incorporated

NASDAQBasic MaterialsUS

$39.34

Market Cap: 283.8M

Compliance Status

Not Halal

Screened on Sep 26, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Friedman Industries, Incorporated (FRD) halal? Not Halal. Based on AAOIFI screening, Friedman Industries, Incorporated passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Friedman Industries, Incorporated (FRD) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Sep 26, 2026. Source: https://halalscreener.app/en/stock/FRD

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

35.7% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding FRD

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

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About Friedman Industries, Incorporated

Friedman Industries, Inc. (FRD) is a U.S.-based company primarily involved in the processing and manufacturing of steel and pipe, as well as their distribution. The firm operates through two distinct divisions: Coil and Tubular. The Coil segment specializes in converting steel coils into flat sheet and plate steel, cut precisely to client specifications. It also resells steel coils and offers processing services for materials owned by customers, for which it charges a fee. This division serves approximately 230 customers, predominantly located in the central and southern United States, including steel distributors and manufacturers. These manufacturers utilize the steel to produce a wide array of products, such as steel buildings, railway carriages, barges, storage tanks, shipping containers, trailers, various component parts, and other fabricated steel goods. Meanwhile, the Tubular segment is dedicated to producing different types of pipes, including those for line applications, oil country purposes (OCTG), and structural uses. This segment's products are primarily sold to steel and pipe distributors through Friedman Industries' internal sales force. Friedman Industries, Incorporated was founded in 1965 and is headquartered in Longview, Texas.

Sector: Basic Materials · Industry: Steel

Why this does not pass

Interest-bearing debt is 35.7% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 26, 2026

See which ratio caused the failure.

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Institutional-grade Shariah analysis

See why FRD is rated Not Halal with institutional-grade analysis

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q1 2027Data source: EDGAR

Halal Alternatives in Basic Materials

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

0205.KLA+

DPI Holdings Berhad

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PMW International Berhad

$0.30

+0.02%

0381.KLA+

Polymer Link Holdings Berhad

$0.20

-0.03%

0385.KLA+

BMS

$0.14

+0.04%

3441.KLA+

Johan Holdings Berhad

$0.02

-0.20%

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Frequently Asked Questions

Is Friedman Industries, Incorporated (FRD) halal to invest in?

Friedman Industries, Incorporated (FRD) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Friedman Industries, Incorporated get a F compliance rating?

Friedman Industries, Incorporated (FRD) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 35.7% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Friedman Industries, Incorporated's Shariah verdict?

Friedman Industries, Incorporated's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Friedman Industries, Incorporated re-screened for Shariah compliance?

Friedman Industries, Incorporated (FRD) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 26, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.