Is Methanex / MX Halal?
Methanex Corporation (TSX: MX) is the world's largest producer and supplier of methanol — an industrial chemical building block made at sites across the Americas, Egypt, and New Zealand. The business is clean. The balance sheet is not: US$2.4 billion of debt against a ~US$4.6 billion market cap.
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
Methanex's operations "consist primarily of the production and sale of methanol and ammonia, both a commodity chemical." Methanol is an industrial chemical building block used in plastics, adhesives, paints, and construction, with some energy uses (fuel blending, marine fuel, biodiesel). Production sites span the US (Geismar, Louisiana; Beaumont, Texas via the OCI acquisition completed June 2025), Canada (Medicine Hat), Chile, Egypt (50%), Trinidad and Tobago, and New Zealand, plus a 60% stake in Waterfront Shipping marine logistics. No beverage alcohol, gambling, interest-based lending, pork, tobacco, insurance, or weapons businesses appear in the filings. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-to-market-cap: ~52.2% ex-leases, ~68.1% incl. leases (ceiling ~33%) — FAIL. At June 30, 2026, Methanex reported long-term debt of US$2,400.3 million — four unsecured notes plus US$121.1 million of limited-recourse facilities, with the Term Loan A fully repaid — roughly 52.2% of the ~US$4.60 billion market cap (NASDAQ: MEOH near US$59.50 in late September 2026; 77,364,263 shares outstanding). Including US$732.8 million of lease obligations, the ratio is about 68.1%.
Interest income: ~0.15% of revenue (ceiling ~5%) — PASS. Methanex does not disclose a separate interest-income line; "Finance income and other expenses" is a net expense. The disclosed "interest received" in cash flows was US$2.106 million for Q2 2026 — roughly 0.15% of US$1,395.3 million in quarterly revenue. Cash of US$382.9 million (~8.3% of market cap) is under the ceiling. Gate two: FAIL on the debt leg.
What other screeners say
No verified current third-party verdict on Methanex was found in public sources during our September 2026 research — not on Zoya, Musaffa, or ShariaPortfolio. The debt ratio alone decides this screener regardless.
The bottom line
This screener gives Methanex Corporation (TSX: MX) a FAIL. The methanol business is fine; the ~52.2% debt-to-market-cap ratio (~68.1% with leases) is not. The screener would only flip with dramatic deleveraging — the announced US$300 million partial redemption of 5.125% notes (October 19, 2026) helps, but the ratio needs to roughly halve — or a far higher market cap. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
The purification angle: purification only helps with dividends from passing companies. Methanex fails this screen, so the question is moot here. For holdings that do pass, the purification calculator handles the dividend math.
Frequently asked questions
Is Methanex stock halal?
This screener gives Methanex Corporation (TSX: MX) a FAIL. The methanol business clears gate one — industrial chemicals are not a prohibited activity. But the debt ratio fails decisively: about US$2,400.3 million of long-term debt against about US$4.60 billion of market cap gives roughly 52.2% — about 68.1% including US$732.8 million of lease obligations — far above the ~33% AAOIFI ceiling.
What are Methanex's debt and market-cap figures?
At June 30, 2026, Methanex reported long-term debt of US$2,400.3 million (four unsecured notes plus US$121.1 million of limited-recourse facilities; the Term Loan A was fully repaid) — roughly 52.2% of the ~US$4.60 billion market cap (NASDAQ: MEOH near US$59.50 in late September 2026; 77,364,263 shares outstanding). Including US$732.8 million of lease obligations, the ratio is about 68.1% — far above the ~33% AAOIFI ceiling.
Does Methanex's business pass the Shariah screen?
Yes. Methanex is the world's largest producer and supplier of methanol, with production sites in the US, Canada, Chile, Egypt, Trinidad and Tobago, and New Zealand, plus a 60% stake in Waterfront Shipping. Methanol is an industrial chemical building block (plastics, adhesives, paints, construction) with some energy uses (fuel blending, marine fuel, biodiesel). No beverage alcohol, gambling, interest-based lending, pork, tobacco, insurance, or weapons businesses appear in the filings. The FAIL comes entirely from the debt ratio, not the business.
Do any third-party screeners agree with this screener?
No verified current third-party verdict on Methanex was found in public sources during our September 2026 research — not on Zoya, Musaffa, or ShariaPortfolio. Our FAIL result is an independent application of the AAOIFI-style screen; consult a scholar or screener of your choice before investing.
What could change Methanex's halal screener?
Serious deleveraging or a far higher market cap. On September 21, 2026, Methanex announced a US$300 million partial redemption of its 5.125% senior notes due October 2027 (redemption date October 19, 2026) — a step in the right direction, but the debt ratio would need to fall by roughly half to clear the ~33% ceiling. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.