Is Stella-Jones / SJ Halal?
Stella-Jones Inc. (TSX: SJ) is the Montreal manufacturer of pressure-treated wood products — utility poles, railway ties, residential lumber, and industrial timbers. Treating and selling wood is a permissible business — its debt is not.
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
Stella-Jones manufactures treated wood utility poles, railway ties, residential lumber, and industrial products (plus steel lattice towers and poles), sold mostly to utilities and railways — none of these are prohibited business activities. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-to-market-cap: ~43.3% including leases (ceiling ~33%) — FAIL. At June 30, 2026, Stella-Jones carried C$1,346 million of long-term debt (including the current portion, largely to fund acquisitions) plus C$300 million of lease liabilities — about C$1,646 million in total — against C$138 million of cash. Against a market cap near C$3.8 billion (TSX: SJ at about C$69.73 × 54.568 million shares), debt and leases are roughly 43.3% of market cap — over the ~33% ceiling even net of cash (~39.6%).
Interest income: not separately disclosed — FAIL by debt alone. Stella-Jones reports financial expenses of C$14 million for Q2 2026 without breaking out interest income as a separate disclosed line, so the income screen cannot be verified from its reported figures. The debt ratio alone determines this screener's FAIL. Gate two: FAIL.
The bottom line
This screener gives Stella-Jones Inc. (TSX: SJ) a FAIL. Q2 2026 (three months ended June 30, 2026, reported August 6, 2026) posted sales of C$1,042 million and net income of C$61 million, with debt being paid down (long-term debt net of cash fell to C$1,208 million from C$1,295 million at December 31, 2025) — deleveraging that is heading the right way but has not yet cleared the screen. No public Shariah rating from Zoya, Musaffa, or ShariaPortfolio was located for this ticker. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
What could flip it: continued deleveraging — interest-bearing obligations falling below roughly C$1.2 billion (33% of today's market cap) — would flip the screen. See all the screeners on the screeners hub.
Frequently asked questions
Is Stella-Jones stock halal?
This screener gives Stella-Jones Inc. (TSX: SJ) a FAIL. Treated wood products — utility poles, railway ties, residential lumber — clear the business-activity screen, but the debt ratio fails: C$1,346 million of long-term debt (including current portion) plus C$300 million of lease liabilities — about C$1,646 million — against a market cap near C$3.8 billion is roughly 43.3%, over the ~33% ceiling.
What are Stella-Jones's debt and market-cap figures?
At June 30, 2026, Stella-Jones reported C$1,346 million of long-term debt including the current portion and C$300 million of lease liabilities — about C$1,646 million in total, against C$138 million of cash. Against a market cap near C$3.8 billion (TSX: SJ at about C$69.73 × 54.568 million shares), the ratio is roughly 43.3% — over the ~33% AAOIFI ceiling even net of cash (~39.6%).
Does Stella-Jones earn interest income?
Stella-Jones reports financial expenses of C$14 million for Q2 2026 without breaking out interest income as a separate disclosed line, so the interest-income screen cannot be verified from its reported figures. The debt ratio alone (~43.3% vs the ~33% ceiling) determines this screener's FAIL.
What could change Stella-Jones's halal screener?
Material debt paydown — or a large rise in equity value — could bring the debt ratio toward the ~33% ceiling (interest-bearing obligations would need to fall below roughly C$1.2 billion at today's market cap). This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings; Q3 2026 results are due around early November 2026.
What do Zoya, Musaffa, and ShariaPortfolio say?
No verified current third-party verdict on Stella-Jones 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.