Is PHM (PulteGroup, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PHM 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 (10.47% vs ≤33% threshold), interest income ratio (0.26% vs ≤5% threshold), and cash & securities ratio (8.75% vs ≤33% threshold).

PulteGroup, Inc. is a major United States homebuilder that acquires land and constructs various residential properties. The company operates under well-known brand names such as Centex, Pulte Homes, and Del Webb, offering single-family detached homes, townhomes, and condominiums. For Muslim investors, PulteGroup is currently classified as a Halal investment, passing all four AAOIFI shariah screens. Its core business of residential construction is inherently permissible, providing a tangible, asset-backed investment opportunity in the real estate sector without the complexities of non-compliant financial services. From an Islamic finance perspective, PulteGroup boasts robust financial health with a debt-to-market cap ratio of just 10.5%, comfortably below the 33% limit. Furthermore, its interest-bearing cash and securities sit at a safe 8.8%, and interest income is negligible at 0.26% of revenue, meaning dividend purification requirements will be minimal. Since the core operations are straightforward real estate development, there is no significant scholarly debate regarding its business model. However, halal investors should periodically monitor the company's debt levels during housing market downturns to ensure it continues to meet AAOIFI leverage thresholds. PulteGroup, Inc. operates in the Consumer Cyclical sector under the Residential Construction industry and is headquartered in Atlanta, GA, US. The company is led by CEO Ryan R. Marshall and employs approximately 6,793 people.

PHM 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. PHM passed 4 of these 4 screens.

Although PHM passes all shariah screens, it does earn $44.4M in interest income (0.26% 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 $0.26 to purify the income.

PHM 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.