Is LEGH halal?
Legacy Housing Corporation
Not halal
Legacy Housing Corporation did not pass AAOIFI screening. The failed check is shown below.
Checked: 12 October 2026
Exchange
NASDAQ
Price
27.39
Day
+0.55%
Market cap
$661.4M
Industry
Residential Construction
Sector
Consumer Cyclical
Manually identified reason
Automatic screening reads the industry label, not what's inside. This company's filings were checked by hand and a hidden prohibited activity was found:
Lending interest: in-house consumer and dealer loans are ~25% of revenue (Legacy Housing)
What the company does
Legacy Housing builds factory-made (manufactured) affordable homes in Texas, sold through dealers and its own lots; it also finances buyers and dealers itself (the ratio is checked by the screener). Its money comes from home sales and loan interest.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
Lending interest: in-house consumer and dealer loans are ~25% of revenue (Legacy Housing)
Interest-bearing debt / market cap
limit 30%
0.0%
Pass
Cash & investments / market cap
limit 30%
5.0%
Pass
Non-compliant income / total revenue
limit 5%
0.8%
Pass
In the lists
- In the S&P 500
- Not in the S&P 500
- Held by funds
- Not held by any tracked fund
Superinvestors
SEC 13F, 2026 Q3. Up to 45 days delayed.Held by 1 superinvestors · Average reported price: $26.27
- Yacktman Asset Management$19.8M0.2%
Halal stocks in the same industry
The largest halal stocks in Residential Construction — for comparison.
Related articles
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- Halal investingBlogWhy a company's cash affects whether its stock is halalLots of cash sounds like a good sign — but halal screening checks it separately. What counts, what doesn't, and where we are stricter than AAOIFI.
- Halal investingBlogAAOIFI Shariah Standard No. 21 in plain languageThe most widely used standard for halal stock screening: the two-step test, the three ratios and how it differs from other methods.
Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.