ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis
USA - NYSE:AWI - US04247X1028 - Common Stock
182.66 USD
-1.92 (-1.04%)
182.66 USD
0 (0%)
AWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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. While showing a medium growth rate, AWI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AWI was profitable.
AWI had a positive operating cash flow in the past year.
Of the past 5 years AWI 4 years were profitable.
Each year in the past 5 years AWI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AWI (16.13%) is better than 95.12% of its industry peers.
With an excellent Return On Equity value of 34.35%, AWI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
AWI has a better Return On Invested Capital (14.43%) than 78.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AWI is in line with the industry average of 12.54%.
The 3 year average ROIC (11.73%) for AWI is below the current ROIC(14.43%), indicating increased profibility in the last year.
| 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 95.12% of its industry peers.
AWI's Profit Margin has declined in the last couple of years.
AWI has a Operating Margin of 19.45%. This is in the better half of the industry: AWI outperforms 78.05% of its industry peers.
In the last couple of years the Operating Margin of AWI has declined.
With a decent Gross Margin value of 40.50%, AWI is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Gross Margin of AWI has remained more or less at the same level.
| 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
AWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AWI has less shares outstanding
AWI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AWI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.55 indicates that AWI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.55, AWI belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
AWI has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
The Debt to FCF ratio of AWI (1.85) is better than 75.61% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that AWI is not too dependend on debt financing.
AWI has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: AWI outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.55 |
ROIC/WACC1.5
WACC9.63%
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.
A Quick Ratio of 1.04 indicates that AWI should not have too much problems paying its short term obligations.
AWI's Quick ratio of 1.04 is on the low side compared to the rest of the industry. AWI is outperformed by 65.85% of its industry peers.
| 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.
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 25.02 indicates a quite expensive valuation of AWI.
65.85% of the companies in the same industry are cheaper than AWI, based on the Price/Earnings ratio.
AWI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
AWI is valuated rather expensively with a Price/Forward Earnings ratio of 21.48.
Based on the Price/Forward Earnings ratio, AWI is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.57. AWI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
70.73% of the companies in the same industry are cheaper than AWI, based on the Enterprise Value to EBITDA ratio.
AWI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.69 | ||
| EV/EBITDA | 19.47 |
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.
AWI's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)4.67
EPS Next 2Y16.09%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, AWI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.33, AWI has a dividend in line with its industry peers.
With a Dividend Yield of 0.72, AWI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
AWI pays out 17.71% of its income as dividend. This is a sustainable payout ratio.
AWI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.71%
EPS Next 2Y16.09%
EPS Next 3Y14.95%
182.66
-1.92 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change-0.64%
Ins Owners1.06%
Ins Owner Change0.06%
Market Cap7.90B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts75.71
Price Target208.08 (13.92%)
Short Float %1.67%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)5.22%
PT rev (3m)7.65%
EPS NQ rev (1m)9.24%
EPS NQ rev (3m)9.8%
EPS NY rev (1m)2.17%
EPS NY rev (3m)6.27%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.48 | ||
| P/S | 4.94 | ||
| P/FCF | 32.69 | ||
| P/OCF | 23.79 | ||
| P/B | 8.89 | ||
| P/tB | 32.23 | ||
| EV/EBITDA | 19.47 |
EPS(TTM)7.3
EY4%
EPS(NY)8.5
Fwd EY4.66%
FCF(TTM)5.59
FCFY3.06%
OCF(TTM)7.68
OCFY4.2%
SpS36.99
BVpS20.55
TBVpS5.67
PEG (NY)1.29
PEG (5Y)4.67
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 | 7.55 |
F-Score8
WACC9.63%
ROIC/WACC1.5
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.