Is McGrath RentCorp MGRC stock halal to invest in?

Yes, as of August 2026, McGrath RentCorp stock (MGRC) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. McGrath RentCorp currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 100%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of McGrath RentCorp and explore other Shariah compliant stocks in the Tabadulat app.

How often is McGrath RentCorp MGRC reviewed for Shariah compliance?

Tabadulat reviews McGrath RentCorp MGRC for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for McGrath RentCorp reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does McGrath RentCorp MGRC pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, McGrath RentCorp stock (MGRC) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. McGrath RentCorp's income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does McGrath RentCorp MGRC pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, McGrath RentCorp stock (MGRC) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). McGrath RentCorp's interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does McGrath RentCorp MGRC pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, McGrath RentCorp stock (MGRC) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. McGrath RentCorp's interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for McGrath RentCorp MGRC stock?

As of August 2026, the dividend purification factor for McGrath RentCorp (MGRC) is 100%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on McGrath RentCorp dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does McGrath RentCorp MGRC pass the AAOIFI Preference Share screen?

Yes, as of August 2026, McGrath RentCorp stock (MGRC) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. McGrath RentCorp has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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McGrath RentCorp

NASDAQ

Shariah-Compliant

Not Shariah

MGRC

About

McGrath RentCorp

MGRC

McGrath RentCorp is a diversified business-to-business rental company that supplies a broad array of industrial and commercial equipment across various sectors. Its primary function lies in leasing relocatable modular buildings and portable storage containers, providing flexible solutions for businesses in construction, education, healthcare, and more. Additionally, the company extends its services through its telecom division, which focuses on renting, selling, and servicing electronic test equipment used by technology firms. McGrath RentCorp also caters to the liquid containment industry with tank and filtration systems, serving the environmental, energy, and manufacturing industries. Established in 1979 and headquartered in Livermore, California, McGrath RentCorp plays a key role in facilitating operational efficiency for companies needing temporary infrastructure or technical equipment. By offering adaptable leasing options, it supports seamless business continuity and strategic expansion within various industrial landscapes.

Sector:

Industrials

Industry:

Rental & Leasing Services

Employees:

1219

Website:

https://www.mgrc.com

MGRC

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McGrath RentCorp

About

McGrath RentCorp

MGRC

Frequently asked questions

Is McGrath RentCorp MGRC stock halal to invest in?

How often is McGrath RentCorp MGRC reviewed for Shariah compliance?

Does McGrath RentCorp MGRC pass the AAOIFI Non Permissible Income criteria?

Does McGrath RentCorp MGRC pass the AAOIFI Interest Bearing Investments criteria?

Does McGrath RentCorp MGRC pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for McGrath RentCorp MGRC stock?

Does McGrath RentCorp MGRC pass the AAOIFI Preference Share screen?

How do I buy McGrath RentCorp (MGRC) stock?

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