TSX Shariah screener · October 2026
Is Foraco International SA (FAR) Halal?
Foraco International SA · TSX: FAR · Industrials
The short answer
No — Foraco International (FAR) fails this Shariah stock screen on the debt gate. Its mineral and water drilling services business is permissible, but interest-bearing debt of US$102.971M at June 30, 2026 (borrowings of US$97.407M plus IFRS 16 lease obligations of US$5.564M) is about 57% of its ~C$258.33M market cap (US$103.0M ≈ C$146.5M at USDCAD 1.4225), well above the ~33% ceiling. Interest income is not separately disclosed in the primary filings, so the income ratio is unverifiable (reported null/informational). No Zoya, Musaffa, or ShariaPortfolio rating was found for this ticker — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
Foraco International SA (TSX:FAR, also quoted OTC and in Frankfurt) is a global drilling contractor with two segments: Mining (drilling services for the mining and energy industry during exploration, development and production phases) and Water (water-well construction for drinking water, mineral water collection, geotechnical and environmental drilling). Q2 2026 revenue was US$84.5M (+22.4% YoY), with a record US$404M order backlog. No alcohol, pork, gambling, tobacco, cannabis, weapons, conventional interest-based lending or adult-entertainment lines were disclosed. Gate 1 passes. Facts only.
Gate 2 — Debt and cash: FAIL
At June 30, 2026, interest-bearing debt totaled US$102.971M — borrowings of US$97.407M (US$17.961M current + US$62.400M non-current long-term debt + US$17.046M drawn credit lines; Note 8) plus IFRS 16 lease obligations of US$5.564M (US$3.803M current + US$1.761M non-current), less nothing (gross basis, before cash). Against a market cap of ~C$258.33M (C$2.61, October 1, 2026), debt converts to ≈C$146.5M at USDCAD 1.4225, giving a debt ÷ market cap ratio of about 56.7% — decisively above the ~33% ceiling. Cash of US$17.292M (≈9.5% of market cap) is under the ~33% guideline. Gate 2 fails. Facts only; currency basis stated.
Gate 3 — Non-compliant income: FAIL
Gate 3 is unverifiable from the primary filings: the H1/Q2 2026 income statement discloses only a net 'Finance costs' line (US$3.932M for H1 2026, US$2.005M for Q2 2026) — no separate interest-income line is reported in the income statement, cash flow statement ('Interest paid, net' US$3.075M H1 2026) or notes, so the interest-income-to-revenue ratio cannot be computed and is reported null/informational. The screen's FAIL result is already decided by Gate 2 (debt ≈56.7% of market cap) regardless of this gate. Facts only.
Key figures used
- Interest-bearing debt: US$102.971M at Jun 30, 2026 (US$97.407M borrowings + US$5.564M IFRS 16 leases) ÷ market cap ≈ 56.7% — decisively above ~33% ceiling
- Market cap: ~C$258.33M (C$2.61, Oct 1, 2026; 97,851,601 shares outstanding); USDCAD 1.4225 used for debt conversion
- Q2 2026: revenue US$84.5M (+22.4% YoY), EBITDA US$15.0M (17.8% margin); H1 2026 revenue US$150.8M, net profit US$4.1M
- Segments: Mining drilling (US$70.5M Q2 revenue) + Water wells/geotechnical (US$14.0M Q2 revenue); 51% rig utilization; record US$404M order backlog
- Interest income: NOT separately disclosed in H1 2026 filings — Gate 3 ratio unverifiable (null)
- Also quoted OTC (FRACF) and Frankfurt (3F3.F); in compliance with all financial covenants, US$22.4M undrawn facilities
Frequently asked questions
Is Foraco International (FAR) halal?
No. Foraco International fails this Shariah stock screen on the debt gate: interest-bearing debt of US$102.971M at June 30, 2026 is about 57% of its ~C$258.33M market cap, well above the ~33% ceiling. Its mineral and water drilling business is permissible, but the debt ratio fails. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is Foraco International's debt-to-market-cap ratio?
About 56.7%. At June 30, 2026, interest-bearing debt was US$102.971M (US$97.407M borrowings including drawn credit lines, plus US$5.564M of IFRS 16 lease obligations). Converted at USDCAD 1.4225 that is ≈C$146.5M against a market cap of ~C$258.33M (C$2.61, October 1, 2026).
What does Foraco International do?
Foraco International SA (TSX:FAR, also quoted OTC and Frankfurt) is a global drilling contractor with two segments: Mining — drilling services for the mining and energy industry during exploration, development and production phases — and Water — water-well construction for drinking water and mineral water, plus geotechnical and environmental drilling. It reported a record US$404M order backlog with Q2 2026 revenue of US$84.5M (+22.4% year over year).
How much interest income does Foraco International earn relative to revenue?
That cannot be determined from the primary filings: the H1/Q2 2026 income statement discloses only a net 'Finance costs' line (US$3.932M for H1 2026) and no separate interest-income line appears in the statements or notes, so the non-compliant income ratio is unverifiable (null). The screen's FAIL result is decided by the debt gate regardless.
Where can I find more industrials stock screeners?
See halal-stock-verdicts.html for the full list of stock screeners, including the other industrials-sector entries.
Sources
- Foraco International — H1/Q2 2026 unaudited interim consolidated financial statements: US$102.971M gross interest-bearing debt; US$3.932M H1 finance costs; no separate interest-income line
- Foraco International — Q2 2026 results (CNW, Jul 31, 2026): US$84.5M revenue (+22.4%), US$15.0M EBITDA, 51% rig utilization
- Finnhub — FAR.TO quote (C$2.61, C$258.33M market cap, Oct 1, 2026)
- Finnhub — USD/CAD spot (1.4225, Oct 1, 2026) used for debt-to-market-cap conversion
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).