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Is BLDR (Builders FirstSource, Inc.) Halal or Haram?

New York Stock ExchangeIndustrialsConstruction$9.75B2026-04-29
BLDR is Doubtful3/4 screens passed

Builders FirstSource operates a permissible core business in construction materials, but unfortunately fails AAOIFI financial screens due to excessive leverage. The company's debt-to-market cap ratio sits at an elevated 57.9%, well above the 33% threshold, rendering the stock currently doubtful for halal portfolios despite having zero interest income.

Price Chart (5D)

$73.12-1.48 (-1.98%)
2026-06-082026-06-01

BLDR — Last 7 Days

DateOpenHighLowCloseVolumeChange
2026-06-0872.5474.0371.5073.121.8M+0.80%
2026-06-0573.8475.1972.0673.642.4M-0.27%
2026-06-0475.0776.4473.3774.982.3M-0.12%
2026-06-0374.0475.0872.7974.262.2M+0.30%
2026-06-0275.7876.2473.6375.371.7M-0.54%
2026-06-0176.0076.6774.3475.622.1M-0.50%
2026-05-2976.4677.6375.8976.2610.2M-0.26%

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Shariah Screening Details for BLDR

Business Activity

Permissible

Builders FirstSource passes the business activity screen because manufacturing and supplying core building materials like lumber, roof trusses, and windows is entirely permissible under Islamic principles.

Debt / Market Cap

57.95%

Debt: $5.65BThreshold: ≤33%

Interest Income

0.00%

Interest: $0Threshold: ≤5%

Cash & Securities

1.86%

Cash: $181.8MThreshold: ≤33%

About Builders FirstSource, Inc. (BLDR)

Builders FirstSource, Inc. (BLDR) is a major U.S. supplier of structural building materials and manufactured components. The company provides essential construction products like dimensional lumber, engineered wood, roof trusses, and custom window units to professional homebuilders and contractors.

For Muslim investors using HalalStocks.co.uk, BLDR is currently classified as Doubtful. While its core business of supplying physical building materials is completely halal, the stock fails the AAOIFI financial screening criteria due to a significant breach in the debt threshold.

The primary concern for Islamic portfolios is the company's debt-to-market cap ratio, which stands at 57.9%, far exceeding the 33% limit. On a positive note, the company maintains very clean revenue streams with 0.00% interest income and holds minimal cash and securities at just 1.9% of its market cap.

Since the non-compliance is entirely driven by capital structure rather than haram business activities, Muslim investors should monitor BLDR's balance sheet. If the company pays down its debt or experiences a significant market cap expansion that lowers the ratio below 33%, it could quickly regain shariah-compliant status.

CEO

Peter Jackson

Employees

29,000

IPO Date

2005-06-28

Headquarters

Irving, TX, US

BLDR Key Financial Statistics

Revenue

$15.19B

Net Income

$435.2M

EPS (Diluted)

$3.89

Stock Price

88.12

Beta

1.64

52-Week Range

76.5-151.03

Total Debt

$5.65B

Total Equity

$4.35B

Current Ratio

1.86

BLDR Financial Health & Profitability

Profit Margins

Gross Margin30.4%
Operating Margin5.2%
Net Margin2.9%

Revenue Growth (YoY)

-7.4%

Prior year: $16.40B

Net Debt

$5.47B

Cash: $181.8M — Debt: $5.65B

Frequently Asked Questions About BLDR

Is BLDR (Builders FirstSource, Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, BLDR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in BLDR.
What does Builders FirstSource, Inc. do?
Builders FirstSource, Inc. (BLDR) is a major U.S. supplier of structural building materials and manufactured components. The company provides essential construction products like dimensional lumber, engineered wood, roof trusses, and custom window units to professional homebuilders and contractors. For Muslim investors using HalalStocks.co.uk, BLDR is currently classified as Doubtful. While its core business of supplying physical building materials is completely halal, the stock fails the AAOIFI financial screening criteria due to a significant breach in the debt threshold. The primary concern for Islamic portfolios is the company's debt-to-market cap ratio, which stands at 57.9%, far exceeding the 33% limit. On a positive note, the company maintains very clean revenue streams with 0.00% interest income and holds minimal cash and securities at just 1.9% of its market cap. Since the non-compliance is entirely driven by capital structure rather than haram business activities, Muslim investors should monitor BLDR's balance sheet. If the company pays down its debt or experiences a significant market cap expansion that lowers the ratio below 33%, it could quickly regain shariah-compliant status. Builders FirstSource, Inc. operates in the Industrials sector under the Construction industry and is headquartered in Irving, TX, US. The company is led by CEO Peter Jackson and employs approximately 29,000 people.
What screening criteria were used for BLDR?
BLDR 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. BLDR passed 3 of these 4 screens.
When was BLDR last screened?
BLDR 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.

Disclaimer

This shariah compliance assessment for BLDR (Builders FirstSource, Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-04-29.

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