
Is Peabody Energy (BTU) stock Halal?
September 2026 AAOIFI screening result for Peabody Energy Corp. (BTU): non-permissible income, pass. Interest-bearing investments, pass. Interest-bearing debt, pass. Preference shares, pass. Dividend purification factor: 96.5%. Re-screened monthly against AAOIFI Shariah Standard No. 21.
Peabody Energy is a leading global coal producer, primarily involved in the mining, distribution, and sale of coal. As a significant player in the energy sector, Peabody Energy's principal function is to supply thermal coal to electricity generators and metallurgical coal to industrial customers worldwide. The company's operations span across major coal-producing regions including the United States and Australia, showcasing its broad geographic presence and influence in the energy market. Before any of that matters to a Muslim investor, one question comes first: is Peabody Energy stock Halal?
Is Peabody Energy Shariah compliant?
For a resources company like Peabody Energy, AAOIFI Shariah Standard No. 21 has little quarrel with the product; the scrutiny falls on the financing. Heavy machinery and long project cycles are usually funded with debt, and the standard tolerates interest bearing borrowing only below 30% of market capitalisation.
Does Peabody Energy pass the business activity test?
Yes. In the September 2026 screening Peabody Energy holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.
Is Peabody Energy's income Halal?
Yes, within AAOIFI's tolerance. Peabody Energy's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 96.5% tells holders of BTU what share of each dividend to keep and what remainder to donate to charity.
Does Peabody Energy meet AAOIFI's debt and investment ratio requirements?
Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has BTU re-screened every month, and the result above always shows the latest verdict.
Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.
New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?



