Is USA Rare Earth Inc (USAR) halal? Not Halal. Based on AAOIFI screening, USA Rare Earth Inc passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

USA Rare Earth Inc

USAR: Is USA Rare Earth Inc Halal?

Not Halal

USA Rare Earth Inc

NASDAQBasic MaterialsUS

$30.70

+4.32%

About USA Rare Earth Inc

USA Rare Earth, Inc. operates as a magnet manufacturing company. The Company develops a NdFeB magnet manufacturing, minerals supply, extraction, and processing plant. USA Rare Earth serves defense, automotive, aviation, industrial, medical, and consumer electronics industries in the United States.

Sector: Basic Materials 路 Industry: Industrial Materials

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap0.1% / 30.0%

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: FY 2025Source: FMP

Financial Overview

Market Cap

3.0B

Price

$30.70

Sector

Basic Materials

Industry

Industrial Materials

Halal Alternatives in Basic Materials

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is USA Rare Earth Inc (USAR) halal to invest in?
USA Rare Earth Inc (USAR) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did USA Rare Earth Inc get a F compliance rating?
USA Rare Earth Inc (USAR) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.1% (limit 30%); interest-bearing deposits of 15.8% (limit 30%); prohibited income of 331.47% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change USA Rare Earth Inc's Shariah verdict?
USA Rare Earth Inc's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is USA Rare Earth Inc re-screened for Shariah compliance?
USA Rare Earth Inc (USAR) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.