Is Fastenal Stock Halal?
How much of Fastenal’s revenue comes from haram?
Fastenal earns its revenue from the following revenue source:
Industrial and Construction:
Supplies threaded fasteners, bolts, nuts, screws, studs, washers, pins, machinery keys, concrete anchors, metal framing systems, wire rope, struts, and rivets.
Practical Islamic Finance finds none of Fastenal’s revenue to come from anything inherently haram.
Does Fastenal rely on interest to operate?
According to the company’s annual report for the fiscal year ended December 31, 2020 (Numbers in thousands, U.S. dollars):
Interest Income: $600
Interest Expense: $9,700
Total Expenses: $4,506,900
Total Revenue: $5,647,300
Interest Expense / Total Expense: 0.22%
Interest Income / Revenue: 0.01%
From the aforementioned, Practical Islamic Finance finds Fastenal’s reliance on interest in its operations to be negligible.
What is Fastenal’s Environmental, Social, and Governance (ESG) impact?
From 2018 to 2019 Fastenal implemented programs to reduce energy consumption by roughly 422,000 kWh.
Fastenal has a slightly above average Glassdoor rating of 3.6 out of 5 from over 3,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
No notable governance highlights.
As a result, Practical Islamic Finance views Fastenal as having a net positive ESG impact.
From Fastenal’s business, financial and ESG reviews, Practical Islamic Finance rates Fastenal stock as:
Comfortable to invest in from a Halal perspective.