ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis

NYSE:AWI • US04247X1028

200.28 USD
+3.34 (+1.7%)
At close: Feb 13, 2026
200.28 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

AWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While AWI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AWI is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year AWI was profitable.
  • AWI had a positive operating cash flow in the past year.
  • AWI had positive earnings in 4 of the past 5 years.
  • AWI had a positive operating cash flow in each of the past 5 years.
AWI Yearly Net Income VS EBIT VS OCF VS FCFAWI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

  • AWI's Return On Assets of 16.13% is amongst the best of the industry. AWI outperforms 95.24% of its industry peers.
  • The Return On Equity of AWI (34.35%) is better than 92.86% of its industry peers.
  • AWI's Return On Invested Capital of 14.43% is amongst the best of the industry. AWI outperforms 80.95% of its industry peers.
  • AWI had an Average Return On Invested Capital over the past 3 years of 11.73%. This is in line with the industry average of 12.11%.
  • The last Return On Invested Capital (14.43%) for AWI is above the 3 year average (11.73%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.13%
ROE 34.35%
ROIC 14.43%
ROA(3y)13.26%
ROA(5y)8.94%
ROE(3y)36.91%
ROE(5y)24.8%
ROIC(3y)11.73%
ROIC(5y)10.44%
AWI Yearly ROA, ROE, ROICAWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

1.3 Margins

  • Looking at the Profit Margin, with a value of 19.09%, AWI belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AWI has declined.
  • AWI has a better Operating Margin (19.45%) than 83.33% of its industry peers.
  • AWI's Operating Margin has declined in the last couple of years.
  • AWI has a Gross Margin of 40.50%. This is in the better half of the industry: AWI outperforms 78.57% of its industry peers.
  • AWI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 19.45%
PM (TTM) 19.09%
GM 40.5%
OM growth 3Y6.93%
OM growth 5Y-2.19%
PM growth 3Y3.44%
PM growth 5Y-2.33%
GM growth 3Y3.17%
GM growth 5Y1.13%
AWI Yearly Profit, Operating, Gross MarginsAWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AWI is still creating some value.
  • Compared to 1 year ago, AWI has less shares outstanding
  • AWI has less shares outstanding than it did 5 years ago.
  • AWI has a better debt/assets ratio than last year.
AWI Yearly Shares OutstandingAWI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
AWI Yearly Total Debt VS Total AssetsAWI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

  • AWI has an Altman-Z score of 7.85. This indicates that AWI is financially healthy and has little risk of bankruptcy at the moment.
  • AWI's Altman-Z score of 7.85 is amongst the best of the industry. AWI outperforms 90.48% of its industry peers.
  • The Debt to FCF ratio of AWI is 1.85, which is an excellent value as it means it would take AWI, only 1.85 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.85, AWI is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • AWI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
  • AWI has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 1.85
Altman-Z 7.85
ROIC/WACC1.62
WACC8.9%
AWI Yearly LT Debt VS Equity VS FCFAWI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.52 indicates that AWI should not have too much problems paying its short term obligations.
  • The Current ratio of AWI (1.52) is worse than 73.81% of its industry peers.
  • A Quick Ratio of 1.04 indicates that AWI should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.04, AWI is doing worse than 64.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.04
AWI Yearly Current Assets VS Current LiabilitesAWI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • AWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.06%, which is quite impressive.
  • AWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.36% yearly.
  • The Revenue has grown by 15.10% in the past year. This is quite good.
  • AWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.85% yearly.
EPS 1Y (TTM)21.06%
EPS 3Y13.99%
EPS 5Y5.36%
EPS Q2Q%13.26%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y9.32%
Revenue growth 5Y6.85%
Sales Q2Q%9.98%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.95% on average over the next years. This is quite good.
  • Based on estimates for the next years, AWI will show a quite strong growth in Revenue. The Revenue will grow by 9.10% on average per year.
EPS Next Y19.7%
EPS Next 2Y16.21%
EPS Next 3Y14.95%
EPS Next 5YN/A
Revenue Next Year14.27%
Revenue Next 2Y10.53%
Revenue Next 3Y9.1%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AWI Yearly Revenue VS EstimatesAWI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
AWI Yearly EPS VS EstimatesAWI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 27.44, which means the current valuation is very expensive for AWI.
  • Compared to the rest of the industry, the Price/Earnings ratio of AWI indicates a slightly more expensive valuation: AWI is more expensive than 61.90% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of AWI to the average of the S&P500 Index (27.97), we can say AWI is valued inline with the index average.
  • AWI is valuated rather expensively with a Price/Forward Earnings ratio of 23.50.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AWI is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, AWI is valued at the same level.
Industry RankSector Rank
PE 27.44
Fwd PE 23.5
AWI Price Earnings VS Forward Price EarningsAWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AWI is valued a bit more expensive than 64.29% of the companies in the same industry.
  • AWI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 35.74
EV/EBITDA 20.65
AWI Per share dataAWI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • AWI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AWI may justify a higher PE ratio.
  • A more expensive valuation may be justified as AWI's earnings are expected to grow with 14.95% in the coming years.
PEG (NY)1.39
PEG (5Y)5.12
EPS Next 2Y16.21%
EPS Next 3Y14.95%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.70%, AWI is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.63, AWI pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.70, AWI pays less dividend than the S&P500 average, which is at 1.79.
Industry RankSector Rank
Dividend Yield 0.7%

5.2 History

  • The dividend of AWI is nicely growing with an annual growth rate of 9.49%!
  • AWI has been paying a dividend for over 5 years, so it has already some track record.
  • As AWI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.49%
Div Incr Years6
Div Non Decr Years6
AWI Yearly Dividends per shareAWI Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 17.71% of the earnings are spent on dividend by AWI. This is a low number and sustainable payout ratio.
  • The dividend of AWI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.71%
EPS Next 2Y16.21%
EPS Next 3Y14.95%
AWI Yearly Income VS Free CF VS DividendAWI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M
AWI Dividend Payout.AWI Dividend Payout, showing the Payout Ratio.AWI Dividend Payout.PayoutRetained Earnings

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ARMSTRONG WORLD INDUSTRIES

NYSE:AWI (2/13/2026, 8:04:00 PM)

After market: 200.28 0 (0%)

200.28

+3.34 (+1.7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28
Earnings (Next)02-24
Inst Owners103.44%
Inst Owner Change0.94%
Ins Owners1.06%
Ins Owner Change0%
Market Cap8.64B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts75.71
Price Target212.83 (6.27%)
Short Float %1.62%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 0.7%
Yearly Dividend1.16
Dividend Growth(5Y)9.49%
DP17.71%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.03%
Min EPS beat(2)-0.04%
Max EPS beat(2)16.11%
EPS beat(4)3
Avg EPS beat(4)7.74%
Min EPS beat(4)-0.04%
Max EPS beat(4)16.11%
EPS beat(8)7
Avg EPS beat(8)8.05%
EPS beat(12)10
Avg EPS beat(12)7.27%
EPS beat(16)11
Avg EPS beat(16)3.97%
Revenue beat(2)1
Avg Revenue beat(2)1.73%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)2.28%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)3.98%
Revenue beat(8)6
Avg Revenue beat(8)1.34%
Revenue beat(12)8
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)-1.16%
PT rev (3m)2.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 27.44
Fwd PE 23.5
P/S 5.4
P/FCF 35.74
P/OCF 26.01
P/B 9.71
P/tB 35.23
EV/EBITDA 20.65
EPS(TTM)7.3
EY3.64%
EPS(NY)8.52
Fwd EY4.25%
FCF(TTM)5.6
FCFY2.8%
OCF(TTM)7.7
OCFY3.84%
SpS37.1
BVpS20.62
TBVpS5.69
PEG (NY)1.39
PEG (5Y)5.12
Graham Number58.19
Profitability
Industry RankSector Rank
ROA 16.13%
ROE 34.35%
ROCE 19.07%
ROIC 14.43%
ROICexc 15.27%
ROICexgc 26.23%
OM 19.45%
PM (TTM) 19.09%
GM 40.5%
FCFM 15.1%
ROA(3y)13.26%
ROA(5y)8.94%
ROE(3y)36.91%
ROE(5y)24.8%
ROIC(3y)11.73%
ROIC(5y)10.44%
ROICexc(3y)12.41%
ROICexc(5y)11.13%
ROICexgc(3y)21.49%
ROICexgc(5y)19.35%
ROCE(3y)15.5%
ROCE(5y)13.79%
ROICexgc growth 3Y14.97%
ROICexgc growth 5Y3.82%
ROICexc growth 3Y13.95%
ROICexc growth 5Y1.26%
OM growth 3Y6.93%
OM growth 5Y-2.19%
PM growth 3Y3.44%
PM growth 5Y-2.33%
GM growth 3Y3.17%
GM growth 5Y1.13%
F-Score8
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 1.85
Debt/EBITDA 0.98
Cap/Depr 77.13%
Cap/Sales 5.65%
Interest Coverage 9.88
Cash Conversion 77.5%
Profit Quality 79.14%
Current Ratio 1.52
Quick Ratio 1.04
Altman-Z 7.85
F-Score8
WACC8.9%
ROIC/WACC1.62
Cap/Depr(3y)87.85%
Cap/Depr(5y)82.44%
Cap/Sales(3y)6.09%
Cap/Sales(5y)6.28%
Profit Quality(3y)63.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.06%
EPS 3Y13.99%
EPS 5Y5.36%
EPS Q2Q%13.26%
EPS Next Y19.7%
EPS Next 2Y16.21%
EPS Next 3Y14.95%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y9.32%
Revenue growth 5Y6.85%
Sales Q2Q%9.98%
Revenue Next Year14.27%
Revenue Next 2Y10.53%
Revenue Next 3Y9.1%
Revenue Next 5YN/A
EBIT growth 1Y18.73%
EBIT growth 3Y16.89%
EBIT growth 5Y4.5%
EBIT Next Year46.11%
EBIT Next 3Y19.97%
EBIT Next 5YN/A
FCF growth 1Y59.85%
FCF growth 3Y19.66%
FCF growth 5Y8.67%
OCF growth 1Y38.61%
OCF growth 3Y12.54%
OCF growth 5Y6.72%

ARMSTRONG WORLD INDUSTRIES / AWI FAQ

What is the ChartMill fundamental rating of ARMSTRONG WORLD INDUSTRIES (AWI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to AWI.


What is the valuation status for AWI stock?

ChartMill assigns a valuation rating of 3 / 10 to ARMSTRONG WORLD INDUSTRIES (AWI). This can be considered as Overvalued.


How profitable is ARMSTRONG WORLD INDUSTRIES (AWI) stock?

ARMSTRONG WORLD INDUSTRIES (AWI) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for AWI stock?

The Price/Earnings (PE) ratio for ARMSTRONG WORLD INDUSTRIES (AWI) is 27.44 and the Price/Book (PB) ratio is 9.71.


Can you provide the dividend sustainability for AWI stock?

The dividend rating of ARMSTRONG WORLD INDUSTRIES (AWI) is 5 / 10 and the dividend payout ratio is 17.71%.