International Paper Company

IP: Is International Paper Company Halal?

International Paper Company

NYSEConsumer CyclicalUS

$37.93

+2.02%

Market Cap: 20.1B

Compliance Status

Doubtful

Screened on Jul 20, 2026 · AAOIFI Standard 21

B

Acceptable

68Score

Is International Paper Company (IP) halal? Doubtful. Based on AAOIFI screening, International Paper Company passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 68/100 (Grade: B).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

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

26.7% of 30.0% limit

What this means for you

You may own IP, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purify 1% of your income from IP

That is about $1.00 of every $100 you earn from it. Donate this share to charity.

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About International Paper Company

International Paper Company, established in 1898 and headquartered in Memphis, Tennessee, functions as a leading global packaging enterprise. Its extensive operational footprint spans the United States, Europe, the Middle East, Africa, the Pacific Rim, Asia, and various other regions across the Americas. The company's business activities are structured into two principal divisions: Industrial Packaging and Global Cellulose Fibers. The Industrial Packaging segment is dedicated to producing a diverse range of containerboards, which encompass linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Concurrently, the Global Cellulose Fibers division supplies fluff, market, and specialized pulps. These pulps are integral components for a wide array of products, including absorbent hygiene items such as baby diapers, feminine care, and adult incontinence products, alongside other non-woven goods, and traditional tissue and paper products. Additionally, they find application in numerous non-absorbent sectors like textiles, filtration systems, building materials, paints and protective coatings, reinforced plastics, and various other industrial uses. International Paper distributes its products directly to ultimate consumers and converters, as well as through an established network of agents, resellers, and paper distributors.

Sector: Consumer Cyclical · Industry: Packaging & Containers

Why This Stock Is Doubtful

  • Debt is 26.7% of market cap, only 3.3 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 20, 2026

Compliance History

  1. Doubtfulnow

    since Jun 2026

  2. Halal

    until the change above

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

Fiscal: Q1 2026Data source: EDGAR
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Frequently Asked Questions

Is International Paper Company (IP) halal to invest in?
International Paper Company (IP) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did International Paper Company get a B compliance rating?
International Paper Company (IP) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 26.7% (limit 30%); interest-bearing deposits of 5.7% (limit 30%); prohibited income of 0.97% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change International Paper Company's Shariah verdict?
International Paper Company'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 International Paper Company re-screened for Shariah compliance?
International Paper Company (IP) 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: Jul 20, 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.