What is Meritage Homes Corporation's Shariah compliance score?

Meritage Homes Corporation (MTH) 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 Meritage Homes Corporation pass AAOIFI screening?

Meritage Homes Corporation (MTH) 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%. MTH's debt-to-market-cap is 47.6%.

How much purification is needed for Meritage Homes Corporation?

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 Meritage Homes Corporation (MTH) using the latest financial data.

Where can I screen Meritage Homes Corporation for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Meritage Homes Corporation (MTH) 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.

MTHNot HalalF

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Compliance Status

Not Halal

Screened on Oct 12, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

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

Quote this verdict

HalalScreener rates Meritage Homes Corporation (MTH) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 12, 2026. Source: https://halalscreener.app/en/stock/MTH

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%.

47.6% of 30.0% limit

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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.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding MTH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

MTH: Is Meritage Homes Corporation Halal?

Meritage Homes Corporation

NYSEConsumer CyclicalUS

$59.17

Market Cap: 3.9B

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About Meritage Homes Corporation

Meritage Homes Corporation, alongside its associated companies, focuses on the design and construction of single-family residences throughout the United States. The enterprise operates primarily through two distinct divisions: home construction and financial services. Its core business involves acquiring and developing land, followed by the building, marketing, and selling of homes, predominantly targeting first-time buyers and those seeking their initial upgrade. Furthermore, the company provides its homebuyers with crucial services such as title insurance and support for closing and settlement processes. Meritage Homes constructs and sells properties under its own brand name across a wide geographic footprint, including Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee. The company was established in 1985 and has its corporate headquarters situated in Scottsdale, Arizona.

Sector: Consumer Cyclical · Industry: Residential Construction

Why this does not pass

Interest-bearing debt is 47.6% 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 Oct 12, 2026

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Institutional-grade Shariah analysis

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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.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halalnow
since Jun 2026
Halal
until the change above

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

Fiscal: Q2 2026Data source: FMP

Halal Alternatives in Consumer Cyclical

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

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$0.14

+0.04%

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Teamstar Berhad

$0.23

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Lien Hoe Corporation Berhad

$0.10

+0.00%

3891.KLA+

Malayan United Industries Berhad

$0.04

+0.00%

5336.KLA+

CUCKOO International (MAL) Berhad

$0.35

-0.01%

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Frequently Asked Questions

Is Meritage Homes Corporation (MTH) halal to invest in?

Meritage Homes Corporation (MTH) 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 Meritage Homes Corporation get a F compliance rating?

Meritage Homes Corporation (MTH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 47.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Meritage Homes Corporation's Shariah verdict?

Meritage Homes Corporation'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 Meritage Homes Corporation re-screened for Shariah compliance?

Meritage Homes Corporation (MTH) 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: Oct 12, 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.