ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis

NYSE:AWI • US04247X1028

192.83 USD
-6.09 (-3.06%)
At close: Feb 23, 2026
193 USD
+0.17 (+0.09%)
After Hours: 2/23/2026, 7:00:00 PM
Fundamental Rating

6

Overall AWI gets a fundamental rating of 6 out of 10. We evaluated AWI against 42 industry peers in the Building Products industry. While AWI has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, AWI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year AWI was profitable.
  • 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.
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 has a Return On Assets of 16.13%. This is amongst the best in the industry. AWI outperforms 95.24% of its industry peers.
  • With an excellent Return On Equity value of 34.35%, AWI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
  • AWI has a better Return On Invested Capital (14.43%) than 80.95% 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 11.90%.
  • 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.
  • 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 78.57% 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 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

6

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.
  • AWI has less shares outstanding than it did 1 year ago.
  • 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 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

  • An Altman-Z score of 7.90 indicates that AWI is not in any danger for bankruptcy at the moment.
  • AWI's Altman-Z score of 7.90 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.
  • A Debt/Equity ratio of 0.47 indicates that AWI is not too dependend on debt financing.
  • 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 7.9
ROIC/WACC1.59
WACC9.05%
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

  • AWI has a Current Ratio of 1.52. This is a normal value and indicates that AWI is financially healthy and should not expect problems in meeting its short term obligations.
  • AWI's Current ratio of 1.52 is on the low side compared to the rest of the industry. AWI is outperformed by 73.81% 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.
  • AWI's Quick ratio of 1.04 is on the low side compared to the rest of the industry. AWI is outperformed by 61.90% of its industry peers.
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

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.
  • 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

  • Based on estimates for the next years, AWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.95% on average per year.
  • The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
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

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.42 indicates a quite expensive valuation of AWI.
  • The rest of the industry has a similar Price/Earnings ratio as AWI.
  • AWI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • The Price/Forward Earnings ratio is 22.63, which indicates a rather expensive current valuation of AWI.
  • AWI's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of AWI to the average of the S&P500 Index (27.75), we can say AWI is valued inline with the index average.
Industry RankSector Rank
PE 26.42
Fwd PE 22.63
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 the industry average as 64.29% of the companies are valued more cheaply.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AWI.
Industry RankSector Rank
P/FCF 34.41
EV/EBITDA 20.85
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)1.34
PEG (5Y)4.93
EPS Next 2Y16.21%
EPS Next 3Y14.95%

5

5. Dividend

5.1 Amount

  • AWI has a yearly dividend return of 0.69%, which is pretty low.
  • AWI's Dividend Yield is a higher than the industry average which is at 0.63.
  • With a Dividend Yield of 0.69, AWI pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.69%

5.2 History

  • On average, the dividend of AWI grows each year by 9.49%, which is quite nice.
  • 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

  • AWI pays out 17.71% 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.
DP17.71%
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

ARMSTRONG WORLD INDUSTRIES

NYSE:AWI (2/23/2026, 7:00:00 PM)

After market: 193 +0.17 (+0.09%)

192.83

-6.09 (-3.06%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28
Earnings (Next)02-24
Inst Owners103.44%
Inst Owner Change5.38%
Ins Owners1.06%
Ins Owner Change0%
Market Cap8.32B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts74.67
Price Target212.83 (10.37%)
Short Float %1.6%
Short Ratio1.63
Dividend
Industry RankSector Rank
Dividend Yield 0.69%
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)-1.16%
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 26.42
Fwd PE 22.63
P/S 5.2
P/FCF 34.41
P/OCF 25.04
P/B 9.35
P/tB 33.92
EV/EBITDA 20.85
EPS(TTM)7.3
EY3.79%
EPS(NY)8.52
Fwd EY4.42%
FCF(TTM)5.6
FCFY2.91%
OCF(TTM)7.7
OCFY3.99%
SpS37.1
BVpS20.62
TBVpS5.69
PEG (NY)1.34
PEG (5Y)4.93
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 7.9
F-Score8
WACC9.05%
ROIC/WACC1.59
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 26.42 and the Price/Book (PB) ratio is 9.35.


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%.