Is ADM (Archer-Daniels-Midland Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ADM is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (23.57% vs ≤33% threshold), interest income ratio (0.15% vs ≤5% threshold), and cash & securities ratio (2.93% vs ≤33% threshold).

Archer-Daniels-Midland Company (ADM) is a global leader in agricultural processing and nutrition. The company procures, transports, and processes raw commodities like corn, wheat, and oilseeds into food ingredients, animal feed, and industrial products across international markets. For Muslim investors on HalalStocks.co.uk, ADM represents a solid Halal investment opportunity in the consumer defensive sector. The stock successfully passes all four AAOIFI Shariah screens, meaning both its core agricultural business and its financial structures align with Islamic finance principles. From a financial perspective, ADM maintains a healthy balance sheet with a debt-to-market cap ratio of 23.6%, comfortably below the 33% limit. Additionally, its interest-bearing securities and cash represent just 2.9% of its market cap, and interest income is a mere 0.15% of revenue, showing minimal reliance on prohibited income streams. Since ADM operates globally in commodities and carbohydrate solutions, investors should simply monitor its future acquisitions or financing methods to ensure debt levels remain compliant. Its current structure, however, is highly favorable for a major agricultural firm. Archer-Daniels-Midland Company operates in the Consumer Defensive sector under the Agricultural Farm Products industry and is headquartered in Chicago, IL, US. The company is led by CEO Juan Ricardo Luciano and employs approximately 42,383 people.

ADM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ADM passed 4 of these 4 screens.

Although ADM passes all shariah screens, it does earn $118.0M in interest income (0.15% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.15 to purify the income.

ADM was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.