Is Nucor Stock Halal?
Table of Contents
How much of Nucor’s revenue comes from haram?
Nucor manufactures and sells steel and steel products.
Nucor’s business operates through the following segments:
- Steel Mills:
Includes sheet steel, plate steel, structural steel, and bar steel.
- Steel Products:
Includes steel tubing, steel fasteners, steel joists and joist girders, steel grating and expanded metal, and wire and wire mesh.
- Raw Materials:
Includes manufacturing ferrous and nonferrous metals, scrap metal, ferroalloys, and Nucor’s natural gas drilling operations.
The contributions from each of Nucor’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Nucor’s revenue comes from anything inherently haram.
Does Nucor rely on interest to operate?
| Year-to-Date for period ended 4/3/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | $1,326 | $13,415 | $35,933 |
| Total Revenue | $7,017,140 | $20,139,658 | $22,588,858 |
| Interest Expense | $40,970 | $166,613 | $157,358 |
| Total Expenses | $5,685,827 | $18,526,749 | $20,621,021 |
| Interest Income / Revenue | 0.02% | 0.07% | 0.16% |
| Interest Expense / Total Expense | 0.72% | 0.90% | 0.76% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Nucor’s operations.
What is Nucor’s Environmental, Social, and Governance (ESG) impact?
Environment
Nucor has a checkered past failing to meet environmental regulations.
However, in 2019, Nucor budgeted over $10 million towards capital expenditures related to environmental improvement projects in addition to its routine compliance costs.
In addition, Nucor states its steel products are made from an average of 71.4% recycled content, with some products containing almost 100% recycled content.
Given Nucor seems like it’s on the right course now, we are willing to give them the benefit of the doubt while recognizing that continued monitoring is required.
Social
Nucor has a high Glassdoor rating of 4.0 out of 5.0 from over 300 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Nucor has a net positive ESG impact.
Comfort Rating
From Nucor’s business, financial, and ESG reviews, Practical Islamic Finance rates Nucor stock as: