ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWI - US04247X1028 - Common Stock
190.8 USD
+0.99 (+0.52%)
190.8 USD
0 (0%)
Taking everything into account, AWI scores 6 out of 10 in our fundamental rating. AWI was compared to 41 industry peers in the Building Products industry. While AWI has a great profitability rating, there are some minor concerns on its financial health. AWI is quite expensive at the moment. It does show a decent growth rate.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.13%, AWI belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
AWI has a Return On Equity of 34.35%. This is amongst the best in the industry. AWI outperforms 90.24% of its industry peers.
AWI has a better Return On Invested Capital (14.43%) than 78.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWI is in line with the industry average of 12.49%.
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 Rank | Sector 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%
1.3 Margins
The Profit Margin of AWI (19.09%) is better than 97.56% of its industry peers.
AWI's Profit Margin has declined in the last couple of years.
AWI's Operating Margin of 19.45% is amongst the best of the industry. AWI outperforms 80.49% of its industry peers.
In the last couple of years the Operating Margin of AWI has declined.
Looking at the Gross Margin, with a value of 40.50%, AWI is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
AWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AWI is creating some value.
AWI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AWI has less shares outstanding
Compared to 1 year ago, AWI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.71 indicates that AWI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.71, AWI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
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.
The Debt to FCF ratio of AWI (1.85) is better than 73.17% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.71 |
ROIC/WACC1.51
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.52 indicates that AWI should not have too much problems paying its short term obligations.
AWI has a Current ratio of 1.52. This is in the lower half of the industry: AWI underperforms 73.17% of its industry peers.
AWI has a Quick Ratio of 1.04. This is a normal value and indicates that AWI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.04, AWI is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.06% over the past year.
Measured over the past 5 years, AWI shows a small growth in Earnings Per Share. The EPS has been growing by 5.36% on average per year.
Looking at the last year, AWI shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
The Revenue has been growing slightly by 6.85% on average over the past years.
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.
The Revenue is expected to grow by 9.08% on average over the next years. This is quite good.
EPS Next Y19.41%
EPS Next 2Y16.09%
EPS Next 3Y14.95%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y10.5%
Revenue Next 3Y9.08%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.14, AWI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AWI indicates a slightly more expensive valuation: AWI is more expensive than 65.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AWI to the average of the S&P500 Index (26.15), we can say AWI is valued inline with the index average.
The Price/Forward Earnings ratio is 22.44, which indicates a rather expensive current valuation of AWI.
AWI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AWI is more expensive than 60.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. AWI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.44 |
4.2 Price Multiples
AWI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AWI is more expensive than 70.73% of the companies in the same industry.
AWI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 20.09 |
4.3 Compensation for Growth
The 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)1.35
PEG (5Y)4.88
EPS Next 2Y16.09%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
AWI has a yearly dividend return of 0.75%, which is pretty low.
AWI's Dividend Yield is comparable with the industry average which is at 1.41.
Compared to an average S&P500 Dividend Yield of 2.41, AWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
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 2Y16.09%
EPS Next 3Y14.95%
190.8
+0.99 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change1.1%
Ins Owners1.06%
Ins Owner Change0.06%
Market Cap8.25B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts75.71
Price Target215.32 (12.85%)
Short Float %1.74%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.16
Dividend Growth(5Y)9.49%
DP17.71%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)8.88%
PT rev (3m)11.4%
EPS NQ rev (1m)9.88%
EPS NQ rev (3m)9.24%
EPS NY rev (1m)2.19%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.44 | ||
| P/S | 5.16 | ||
| P/FCF | 34.15 | ||
| P/OCF | 24.85 | ||
| P/B | 9.28 | ||
| P/tB | 33.66 | ||
| EV/EBITDA | 20.09 |
EPS(TTM)7.3
EY3.83%
EPS(NY)8.5
Fwd EY4.46%
FCF(TTM)5.59
FCFY2.93%
OCF(TTM)7.68
OCFY4.02%
SpS36.99
BVpS20.55
TBVpS5.67
PEG (NY)1.35
PEG (5Y)4.88
Graham Number58.1
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.71 |
F-Score8
WACC9.55%
ROIC/WACC1.51
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 Y19.41%
EPS Next 2Y16.09%
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 Year14.2%
Revenue Next 2Y10.5%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y18.73%
EBIT growth 3Y16.89%
EBIT growth 5Y4.5%
EBIT Next Year45.79%
EBIT Next 3Y19.51%
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.
Can you provide the valuation status for ARMSTRONG WORLD INDUSTRIES?
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.
What is the financial health of ARMSTRONG WORLD INDUSTRIES (AWI) stock?
The financial health rating of ARMSTRONG WORLD INDUSTRIES (AWI) is 6 / 10.
What is the earnings growth outlook for ARMSTRONG WORLD INDUSTRIES?
The Earnings per Share (EPS) of ARMSTRONG WORLD INDUSTRIES (AWI) is expected to grow by 19.41% in the next year.