Is Motorcar Parts of America, Inc. MPAA stock halal to invest in?

No, as of August 2026, Motorcar Parts of America, Inc. stock (MPAA) is not currently 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. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Motorcar Parts of America, Inc. currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Motorcar Parts of America, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Motorcar Parts of America, Inc. MPAA reviewed for Shariah compliance?

Tabadulat reviews Motorcar Parts of America, Inc. MPAA 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screening ensures the status shown for Motorcar Parts of America, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 Motorcar Parts of America, Inc. MPAA pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Motorcar Parts of America, Inc. stock (MPAA) 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. Motorcar Parts of America, Inc.'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 Motorcar Parts of America, Inc. MPAA pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Motorcar Parts of America, Inc. stock (MPAA) 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). Motorcar Parts of America, Inc.'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 Motorcar Parts of America, Inc. MPAA pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Motorcar Parts of America, Inc. stock (MPAA) does not pass 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. Motorcar Parts of America, Inc.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Motorcar Parts of America, Inc. MPAA stock?

Motorcar Parts of America, Inc. (MPAA) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Motorcar Parts of America, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Motorcar Parts of America, Inc. MPAA pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Motorcar Parts of America, Inc. stock (MPAA) 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. Motorcar Parts of America, Inc. 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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Motorcar Parts of America, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

MPAA

About

Motorcar Parts of America, Inc.

MPAA

Motorcar Parts of America, Inc. specializes in the manufacturing, remanufacturing, and distribution of automotive aftermarket parts. The company primarily focuses on rotating electrical products, including starters and alternators, along with other industrial and heavy-duty parts. With a strategic emphasis on quality and innovation, Motorcar Parts of America caters to the North American market, supplying to major retail and private label customers, automotive warehouse distributors, and the professional service repair sector. Notable for its commitment to sustainability, the remanufacturing aspect reduces waste and promotes environmental responsibility, contributing positively to the green economy. The company's operations play a significant role in ensuring the availability of essential automotive components, impacting sectors such as transportation and logistics. As an entity in the automotive industry, Motorcar Parts of America is pivotal in supporting vehicle longevity and operational efficiency, reinforcing the performance of personal and commercial vehicles across the market.

Sector:

Consumer Cyclical

Industry:

Auto Parts

Employees:

5700

Website:

https://www.motorcarparts.com

MPAA

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Motorcar Parts of America, Inc.

About

Motorcar Parts of America, Inc.

MPAA

Frequently asked questions

Is Motorcar Parts of America, Inc. MPAA stock halal to invest in?

How often is Motorcar Parts of America, Inc. MPAA reviewed for Shariah compliance?

Does Motorcar Parts of America, Inc. MPAA pass the AAOIFI Non Permissible Income criteria?

Does Motorcar Parts of America, Inc. MPAA pass the AAOIFI Interest Bearing Investments criteria?

Does Motorcar Parts of America, Inc. MPAA pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Motorcar Parts of America, Inc. MPAA stock?

Does Motorcar Parts of America, Inc. MPAA pass the AAOIFI Preference Share screen?

Can I buy Motorcar Parts of America (MPAA) stock on Tabadulat?

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