ARMSTRONG WORLD INDUSTRIES (AWI)
US04247X1028 - Common Stock
Taking everything into account, AWI scores 5 out of 10 in our fundamental rating. AWI was compared to 43 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AWI had positive earnings in the past year.
In the past year AWI had a positive cash flow from operations.
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
AWI has a better Return On Assets (13.38%) than 81.40% of its industry peers.
With an excellent Return On Equity value of 37.82%, AWI belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
AWI's Return On Invested Capital of 12.10% is in line compared to the rest of the industry. AWI outperforms 53.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AWI is below the industry average of 13.68%.
The last Return On Invested Capital (12.10%) for AWI is above the 3 year average (10.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.38% | ||
| ROE | 37.82% | ||
| ROIC | 12.1% |
ROA(3y)12.04%
ROA(5y)8.94%
ROE(3y)37%
ROE(5y)29.53%
ROIC(3y)10.36%
ROIC(5y)10.41%
1.3 Margins
With an excellent Profit Margin value of 17.28%, AWI belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Profit Margin of AWI has declined.
AWI has a Operating Margin of 18.10%. This is in the better half of the industry: AWI outperforms 72.09% of its industry peers.
In the last couple of years the Operating Margin of AWI has remained more or less at the same level.
AWI has a better Gross Margin (38.37%) than 72.09% of its industry peers.
AWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.1% | ||
| PM (TTM) | 17.28% | ||
| GM | 38.37% |
OM growth 3Y-0.05%
OM growth 5Y0.23%
PM growth 3YN/A
PM growth 5Y-1.88%
GM growth 3Y2.58%
GM growth 5Y2.33%
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.
The number of shares outstanding for AWI has been reduced compared to 1 year ago.
AWI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AWI has been reduced compared to a year ago.
2.2 Solvency
AWI has an Altman-Z score of 5.23. This indicates that AWI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 5.23, AWI perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
The Debt to FCF ratio of AWI is 4.10, which is a neutral value as it means it would take AWI, 4.10 years of fcf income to pay off all of its debts.
AWI has a Debt to FCF ratio of 4.10. This is in the lower half of the industry: AWI underperforms 69.77% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that AWI is somewhat dependend on debt financing.
The Debt to Equity ratio of AWI (0.99) is worse than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 5.23 |
ROIC/WACC1.09
WACC11.13%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AWI should not have too much problems paying its short term obligations.
The Current ratio of AWI (1.61) is worse than 74.42% of its industry peers.
A Quick Ratio of 1.07 indicates that AWI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, AWI is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
AWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
The Earnings Per Share has been growing slightly by 7.48% on average over the past years.
AWI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.04%.
Measured over the past years, AWI shows a small growth in Revenue. The Revenue has been growing by 5.84% on average per year.
EPS 1Y (TTM)12%
EPS 3Y12.97%
EPS 5Y7.48%
EPS growth Q2Q12.96%
Revenue 1Y (TTM)5.04%
Revenue growth 3Y11.4%
Revenue growth 5Y5.84%
Revenue growth Q2Q2.56%
3.2 Future
AWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
The Revenue is expected to grow by 6.26% on average over the next years.
EPS Next Y9.28%
EPS Next 2Y10.73%
EPS Next 3Y13.74%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y5.06%
Revenue Next 3Y6.26%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AWI is valuated rather expensively with a Price/Earnings ratio of 21.65.
Compared to the rest of the industry, the Price/Earnings ratio of AWI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.06. AWI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.81, which indicates a rather expensive current valuation of AWI.
AWI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, AWI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AWI indicates a slightly more expensive valuation: AWI is more expensive than 60.47% of the companies listed in the same industry.
AWI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AWI is more expensive than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.7 | ||
| EV/EBITDA | 17.13 |
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 a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AWI's earnings are expected to grow with 13.74% in the coming years.
PEG (NY)2.33
PEG (5Y)2.9
EPS Next 2Y10.73%
EPS Next 3Y13.74%
5. Dividend
5.1 Amount
AWI has a yearly dividend return of 0.98%, which is pretty low.
AWI's Dividend Yield is a higher than the industry average which is at 1.31.
With a Dividend Yield of 0.98, AWI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of AWI grows each year by 43.99%, which is quite nice.
AWI has been paying a dividend for over 5 years, so it has already some track record.
AWI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)43.99%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
20.96% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.96%
EPS Next 2Y10.73%
EPS Next 3Y13.74%
ARMSTRONG WORLD INDUSTRIES
NYSE:AWI (5/2/2024, 7:04:00 PM)
After market: 115.17 0 (0%)115.17
+1.05 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.33
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.38% | ||
| ROE | 37.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.1% | ||
| PM (TTM) | 17.28% | ||
| GM | 38.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12%
EPS 3Y12.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.04%
Revenue growth 3Y11.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y