Is Magna International / MG Halal?
Magna International Inc. (TSX: MG; NYSE: MGA) is one of the world's largest automotive suppliers — body exteriors and structures, power and vision systems, seating, and complete vehicle assembly. Manufacturing clears gate one, and the ratios clear gate two with room to spare.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — PASS
Magna designs and manufactures auto parts and assembles complete vehicles — body exteriors and structures ($4.42 billion of Q2 sales), power and vision systems ($4.09 billion), seating ($1.45 billion), and complete vehicles ($1.16 billion). Manufacturing is a permissible business activity, and no haram revenue segment is disclosed. Gate one: PASS.
Gate two: the ratios — PASS
Debt-to-market-cap: ~28.1% (ceiling ~33%) — PASS. Magna reported long-term debt of US$4,608 million plus US$20 million due within one year at June 30, 2026 — about US$4.63 billion of debt (Magna reports in U.S. dollars), roughly CA$6.5 billion at a 1.40 exchange rate. Against a market cap of roughly CA$24.41 billion on September 25, 2026, the ratio is about 26.5% — comfortably under the ceiling. Cash and cash equivalents were about US$1.43 billion.
Non-compliant income: negligible (ceiling ~5%) — PASS. Magna reported "interest expense, net" of US$37 million for Q2 2026 — it is a net interest payer, with any interest income a small offset against quarterly sales of US$10,980 million. Gate two: PASS.
What other screeners say
No verified current third-party rating was found for Magna International on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The PASS rating here rests on this site's own screening methodology, not on a third-party endorsement.
The bottom line
This screener gives Magna International Inc. (TSX: MG) a PASS. Q2 2026 (reported July 31, 2026) delivered sales of US$11.0 billion (+3%), adjusted EBIT of US$677 million (+16%), record second-quarter adjusted EPS of US$1.86, net income of US$469 million, and free cash flow of US$617 million — and the company raised its 2026 outlook while returning US$598 million to shareholders in the quarter. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
The purification angle: Magna's interest income is negligible (the company is a net interest payer), so dividend purification math is minimal — but if you want to run the numbers on any dividend, the purification calculator is here.
Frequently asked questions
Is Magna International stock halal?
This screener gives Magna International Inc. (TSX: MG) a PASS. Auto parts manufacturing clears the business-activity screen, and the ratio math clears: about US$4.63 billion of debt at June 30, 2026 (about CA$6.56 billion at ~1.418 USD/CAD on September 28, 2026) against a market cap of about CA$23.32 billion — roughly 28.1%, under the ~33% ceiling, with the company a net interest payer rather than an interest earner.
What are Magna International's debt and market-cap figures?
Magna reported long-term debt of US$4,608 million plus US$20 million due within one year at June 30, 2026 — total debt of about US$4.63 billion (Magna reports in U.S. dollars), about CA$6.56 billion at ~1.418 USD/CAD on September 28, 2026. Against a market cap of roughly CA$23.32 billion on September 28, 2026, the debt-to-market-cap ratio is about 28.1%, under the ~33% AAOIFI ceiling. Cash and cash equivalents were about US$1.43 billion.
Does Magna International earn interest income?
Magna reports "interest expense, net" of US$37 million for Q2 2026 — it is a net interest payer, with any interest income a small offset to interest expense and negligible against quarterly sales of US$10,980 million. Non-compliant income is well under the ~5% screen.
Do any third-party screeners agree with this screener?
No verified current third-party rating was found for Magna International on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The PASS rating here rests on this site's own screening methodology, not on a third-party endorsement.
What could change Magna International's halal screener?
A large debt-funded acquisition could push the ~28.1% debt ratio toward the ~33% ceiling, or a sharp share-price decline could do the same. Auto parts manufacturing is not a problematic business segment. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.