ARMSTRONG WORLD INDUSTRIES (AWI) Fundamental Analysis & Valuation

NYSE:AWI • US04247X1028

Current stock price

177.66 USD
-2.95 (-1.63%)
At close:
177.66 USD
0 (0%)
After Hours:

This AWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. AWI Profitability Analysis

1.1 Basic Checks

  • In the past year AWI was profitable.
  • AWI had a positive operating cash flow in the past year.
  • In the past 5 years AWI has always been profitable.
  • In the past 5 years AWI always reported a positive cash flow from operatings.
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 2025 0 100M 200M 300M

1.2 Ratios

  • AWI has a Return On Assets of 16.04%. This is amongst the best in the industry. AWI outperforms 92.68% of its industry peers.
  • Looking at the Return On Equity, with a value of 34.27%, AWI belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
  • AWI's Return On Invested Capital of 14.76% is amongst the best of the industry. AWI outperforms 82.93% 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 11.89%.
  • The 3 year average ROIC (13.39%) for AWI is below the current ROIC(14.76%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 16.04%
ROE 34.27%
ROIC 14.76%
ROA(3y)14.6%
ROA(5y)13.31%
ROE(3y)35.69%
ROE(5y)36.05%
ROIC(3y)13.39%
ROIC(5y)11.85%
AWI Yearly ROA, ROE, ROICAWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60 80

1.3 Margins

  • AWI's Profit Margin of 19.05% is amongst the best of the industry. AWI outperforms 95.12% of its industry peers.
  • AWI's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 19.67%, AWI belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
  • AWI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 40.65%, AWI is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
  • AWI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.67%
PM (TTM) 19.05%
GM 40.65%
OM growth 3Y6.46%
OM growth 5Y1.66%
PM growth 3Y5%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y2.71%
AWI Yearly Profit, Operating, Gross MarginsAWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

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7

2. AWI Health Analysis

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
  • The number of shares outstanding for AWI has been reduced compared to 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 2025 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 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 7.32 indicates that AWI is not in any danger for bankruptcy at the moment.
  • AWI has a Altman-Z score of 7.32. This is amongst the best in the industry. AWI outperforms 87.80% of its industry peers.
  • The Debt to FCF ratio of AWI is 1.81, which is an excellent value as it means it would take AWI, only 1.81 years of fcf income to pay off all of its debts.
  • AWI's Debt to FCF ratio of 1.81 is fine compared to the rest of the industry. AWI outperforms 73.17% of its industry peers.
  • A Debt/Equity ratio of 0.48 indicates that AWI is not too dependend on debt financing.
  • The Debt to Equity ratio of AWI (0.48) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.81
Altman-Z 7.32
ROIC/WACC1.45
WACC10.17%
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 2025 0 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that AWI should not have too much problems paying its short term obligations.
  • The Current ratio of AWI (1.46) is worse than 78.05% of its industry peers.
  • AWI has a Quick Ratio of 1.46. This is a bad value and indicates that AWI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AWI has a Quick ratio of 1.00. This is in the lower half of the industry: AWI underperforms 68.29% of its industry peers.
  • AWI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1
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 2025 200M 400M 600M

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5

3. AWI Growth Analysis

3.1 Past

  • AWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.43%, which is quite good.
  • The Earnings Per Share has been growing by 14.96% on average over the past years. This is quite good.
  • Looking at the last year, AWI shows a quite strong growth in Revenue. The Revenue has grown by 12.11% in the last year.
  • AWI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.59% yearly.
EPS 1Y (TTM)17.43%
EPS 3Y15.98%
EPS 5Y14.96%
EPS Q2Q%7.33%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y9.54%
Revenue growth 5Y11.59%
Sales Q2Q%5.6%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.05% on average over the next years. This is quite good.
  • AWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y12.83%
EPS Next 2Y12.57%
EPS Next 3Y13.05%
EPS Next 5YN/A
Revenue Next Year8.36%
Revenue Next 2Y7.53%
Revenue Next 3Y7.56%
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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 2028 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 2028 2 4 6 8 10

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3

4. AWI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.98, the valuation of AWI can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of AWI indicates a slightly more expensive valuation: AWI is more expensive than 60.98% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.71. AWI is around the same levels.
  • Based on the Price/Forward Earnings ratio of 21.25, the valuation of AWI can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AWI is on the same level as its industry peers.
  • AWI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.09, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.98
Fwd PE 21.25
AWI Price Earnings VS Forward Price EarningsAWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 65.85% of the companies in the same industry are cheaper than AWI, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AWI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 30.92
EV/EBITDA 18.37
AWI Per share dataAWI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AWI does not grow enough to justify the current Price/Earnings ratio.
  • AWI has an outstanding profitability rating, which may justify a higher PE ratio.
  • AWI's earnings are expected to grow with 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)1.6
EPS Next 2Y12.57%
EPS Next 3Y13.05%

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6

5. AWI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.78%, AWI is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.75, AWI pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, AWI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • On average, the dividend of AWI grows each year by 9.32%, which is quite nice.
  • AWI has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AWI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.32%
Div Incr Years7
Div Non Decr Years7
AWI Yearly Dividends per shareAWI Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • AWI pays out 17.88% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of AWI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.88%
EPS Next 2Y12.57%
EPS Next 3Y13.05%
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 2025 0 100M 200M 300M
AWI Dividend Payout.AWI Dividend Payout, showing the Payout Ratio.AWI Dividend Payout.PayoutRetained Earnings

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AWI Fundamentals: All Metrics, Ratios and Statistics

ARMSTRONG WORLD INDUSTRIES

NYSE:AWI (4/21/2026, 4:15:00 PM)

After market: 177.66 0 (0%)

177.66

-2.95 (-1.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-24
Earnings (Next)04-28
Inst Owners103.27%
Inst Owner Change-0.01%
Ins Owners0.14%
Ins Owner Change1.49%
Market Cap7.61B
Revenue(TTM)1.62B
Net Income(TTM)308.70M
Analysts74.67
Price Target210.7 (18.6%)
Short Float %2.03%
Short Ratio1.52
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend1.28
Dividend Growth(5Y)9.32%
DP17.88%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-05
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.48%
Min EPS beat(2)-4.93%
Max EPS beat(2)-0.04%
EPS beat(4)2
Avg EPS beat(4)4.7%
Min EPS beat(4)-4.93%
Max EPS beat(4)16.11%
EPS beat(8)6
Avg EPS beat(8)5.35%
EPS beat(12)10
Avg EPS beat(12)7.2%
EPS beat(16)10
Avg EPS beat(16)3.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)3.98%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)-1%
PT rev (3m)-2.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.36%
Valuation
Industry RankSector Rank
PE 23.98
Fwd PE 21.25
P/S 4.69
P/FCF 30.92
P/OCF 21.4
P/B 8.45
P/tB 29.53
EV/EBITDA 18.37
EPS(TTM)7.41
EY4.17%
EPS(NY)8.36
Fwd EY4.71%
FCF(TTM)5.75
FCFY3.23%
OCF(TTM)8.3
OCFY4.67%
SpS37.84
BVpS21.03
TBVpS6.02
PEG (NY)1.87
PEG (5Y)1.6
Graham Number59.2129 (-66.67%)
Profitability
Industry RankSector Rank
ROA 16.04%
ROE 34.27%
ROCE 19.24%
ROIC 14.76%
ROICexc 15.83%
ROICexgc 27.13%
OM 19.67%
PM (TTM) 19.05%
GM 40.65%
FCFM 15.18%
ROA(3y)14.6%
ROA(5y)13.31%
ROE(3y)35.69%
ROE(5y)36.05%
ROIC(3y)13.39%
ROIC(5y)11.85%
ROICexc(3y)14.19%
ROICexc(5y)12.61%
ROICexgc(3y)24.59%
ROICexgc(5y)21.75%
ROCE(3y)17.46%
ROCE(5y)15.45%
ROICexgc growth 3Y13.14%
ROICexgc growth 5Y10.51%
ROICexc growth 3Y12.81%
ROICexc growth 5Y11.37%
OM growth 3Y6.46%
OM growth 5Y1.66%
PM growth 3Y5%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y2.71%
F-Score9
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.81
Debt/EBITDA 0.98
Cap/Depr 90.86%
Cap/Sales 6.75%
Interest Coverage 10.73
Cash Conversion 80.94%
Profit Quality 79.72%
Current Ratio 1.46
Quick Ratio 1
Altman-Z 7.32
F-Score9
WACC10.17%
ROIC/WACC1.45
Cap/Depr(3y)88.35%
Cap/Depr(5y)87.42%
Cap/Sales(3y)6.32%
Cap/Sales(5y)6.44%
Profit Quality(3y)72.02%
Profit Quality(5y)65.55%
High Growth Momentum
Growth
EPS 1Y (TTM)17.43%
EPS 3Y15.98%
EPS 5Y14.96%
EPS Q2Q%7.33%
EPS Next Y12.83%
EPS Next 2Y12.57%
EPS Next 3Y13.05%
EPS Next 5YN/A
Revenue 1Y (TTM)12.11%
Revenue growth 3Y9.54%
Revenue growth 5Y11.59%
Sales Q2Q%5.6%
Revenue Next Year8.36%
Revenue Next 2Y7.53%
Revenue Next 3Y7.56%
Revenue Next 5YN/A
EBIT growth 1Y15.76%
EBIT growth 3Y16.61%
EBIT growth 5Y13.43%
EBIT Next Year39.81%
EBIT Next 3Y17.7%
EBIT Next 5YN/A
FCF growth 1Y33.75%
FCF growth 3Y31.75%
FCF growth 5Y8.54%
OCF growth 1Y33.25%
OCF growth 3Y24.91%
OCF growth 5Y10.19%

ARMSTRONG WORLD INDUSTRIES / AWI Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 7 / 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.


Can you provide the profitability details for ARMSTRONG WORLD INDUSTRIES?

ARMSTRONG WORLD INDUSTRIES (AWI) has a profitability rating of 9 / 10.


What is the financial health of ARMSTRONG WORLD INDUSTRIES (AWI) stock?

The financial health rating of ARMSTRONG WORLD INDUSTRIES (AWI) is 7 / 10.


How sustainable is the dividend of ARMSTRONG WORLD INDUSTRIES (AWI) stock?

The dividend rating of ARMSTRONG WORLD INDUSTRIES (AWI) is 6 / 10 and the dividend payout ratio is 17.88%.