ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis
USA - NYSE:AWI - US04247X1028 - Common Stock
194.35 USD
-2.22 (-1.13%)
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. Both the health and profitability get an excellent rating, making AWI a very profitable company, without any liquidiy or solvency issues. AWI is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make AWI a good candidate for quality investing.
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.
Of the past 5 years AWI 4 years were profitable.
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 15.90%, AWI belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
With an excellent Return On Equity value of 35.33%, AWI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
AWI has a Return On Invested Capital of 14.35%. This is in the better half of the industry: AWI outperforms 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 12.76%.
The 3 year average ROIC (11.73%) for AWI is below the current ROIC(14.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | 35.33% | ||
| ROIC | 14.35% |
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
AWI's Profit Margin of 18.95% is amongst the best of the industry. AWI outperforms 97.56% of its industry peers.
In the last couple of years the Profit Margin of AWI has declined.
The Operating Margin of AWI (19.79%) is better than 82.93% of its industry peers.
AWI's Operating Margin has declined in the last couple of years.
The Gross Margin of AWI (40.58%) is better than 78.05% of its industry peers.
AWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.79% | ||
| PM (TTM) | 18.95% | ||
| GM | 40.58% |
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.
The number of shares outstanding for AWI has been reduced compared to 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.
2.2 Solvency
AWI has an Altman-Z score of 7.73. This indicates that AWI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.73, AWI belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
The Debt to FCF ratio of AWI is 2.39, which is a good value as it means it would take AWI, 2.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AWI (2.39) is better than 65.85% of its industry peers.
AWI has a Debt/Equity ratio of 0.59. This is a neutral value indicating AWI is somewhat dependend on debt financing.
AWI has a Debt to Equity ratio (0.59) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for AWI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 7.73 |
ROIC/WACC1.39
WACC10.34%
2.3 Liquidity
AWI has a Current Ratio of 1.61. 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 Current ratio value of 1.61, AWI is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
AWI has a Quick Ratio of 1.11. This is a normal value and indicates that AWI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AWI (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
AWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.31%, which is quite impressive.
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.
The Revenue has grown by 15.59% in the past year. This is quite good.
AWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.85% yearly.
EPS 1Y (TTM)21.31%
EPS 3Y13.99%
EPS 5Y5.36%
EPS Q2Q%29.01%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y9.32%
Revenue growth 5Y6.85%
Sales Q2Q%16.3%
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 13.79% yearly.
Based on estimates for the next years, AWI will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y16.87%
EPS Next 2Y15.12%
EPS Next 3Y13.79%
EPS Next 5YN/A
Revenue Next Year13.64%
Revenue Next 2Y10.09%
Revenue Next 3Y8.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.53, which means the current valuation is very expensive for AWI.
AWI's Price/Earnings ratio is a bit more expensive when compared to the industry. AWI is more expensive than 63.41% of the companies in the same industry.
AWI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
AWI is valuated rather expensively with a Price/Forward Earnings ratio of 23.24.
AWI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AWI is more expensive than 65.85% of the companies in the same industry.
AWI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 23.24 |
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 70.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AWI is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.48 | ||
| EV/EBITDA | 21.19 |
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 13.79% in the coming years.
PEG (NY)1.63
PEG (5Y)5.14
EPS Next 2Y15.12%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, AWI is not a good candidate for dividend investing.
AWI's Dividend Yield is comparable with the industry average which is at 1.17.
Compared to an average S&P500 Dividend Yield of 2.38, AWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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.
AWI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.49%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
17.87% 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.
DP17.87%
EPS Next 2Y15.12%
EPS Next 3Y13.79%
NYSE:AWI (9/22/2025, 11:49:10 AM)
194.35
-2.22 (-1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.69%
Inst Owner Change-1.7%
Ins Owners1.06%
Ins Owner Change0.95%
Market Cap8.41B
Analysts75.38
Price Target197.75 (1.75%)
Short Float %1.61%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.16
Dividend Growth(5Y)9.49%
DP17.87%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.88%
Min EPS beat(2)7.65%
Max EPS beat(2)16.11%
EPS beat(4)4
Avg EPS beat(4)8.3%
Min EPS beat(4)2.19%
Max EPS beat(4)16.11%
EPS beat(8)8
Avg EPS beat(8)10.63%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)11
Avg EPS beat(16)3.36%
Revenue beat(2)2
Avg Revenue beat(2)3.11%
Min Revenue beat(2)2.24%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)3.98%
Revenue beat(8)7
Avg Revenue beat(8)1.92%
Revenue beat(12)8
Avg Revenue beat(12)0.66%
Revenue beat(16)10
Avg Revenue beat(16)0.31%
PT rev (1m)2.31%
PT rev (3m)19.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 23.24 | ||
| P/S | 5.38 | ||
| P/FCF | 38.48 | ||
| P/OCF | 27.5 | ||
| P/B | 10.04 | ||
| P/tB | 43.34 | ||
| EV/EBITDA | 21.19 |
EPS(TTM)7.06
EY3.63%
EPS(NY)8.36
Fwd EY4.3%
FCF(TTM)5.05
FCFY2.6%
OCF(TTM)7.07
OCFY3.64%
SpS36.1
BVpS19.37
TBVpS4.48
PEG (NY)1.63
PEG (5Y)5.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | 35.33% | ||
| ROCE | 18.97% | ||
| ROIC | 14.35% | ||
| ROICexc | 15.11% | ||
| ROICexgc | 25.86% | ||
| OM | 19.79% | ||
| PM (TTM) | 18.95% | ||
| GM | 40.58% | ||
| FCFM | 13.99% |
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%
ROICexcg growth 3Y14.97%
ROICexcg 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 77.03% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 8.85 | ||
| Cash Conversion | 72.41% | ||
| Profit Quality | 73.82% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 7.73 |
F-Score8
WACC10.34%
ROIC/WACC1.39
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)21.31%
EPS 3Y13.99%
EPS 5Y5.36%
EPS Q2Q%29.01%
EPS Next Y16.87%
EPS Next 2Y15.12%
EPS Next 3Y13.79%
EPS Next 5YN/A
Revenue 1Y (TTM)15.59%
Revenue growth 3Y9.32%
Revenue growth 5Y6.85%
Sales Q2Q%16.3%
Revenue Next Year13.64%
Revenue Next 2Y10.09%
Revenue Next 3Y8.94%
Revenue Next 5YN/A
EBIT growth 1Y22.38%
EBIT growth 3Y16.89%
EBIT growth 5Y4.5%
EBIT Next Year45.79%
EBIT Next 3Y19.51%
EBIT Next 5YN/A
FCF growth 1Y75.08%
FCF growth 3Y19.66%
FCF growth 5Y8.67%
OCF growth 1Y43.39%
OCF growth 3Y12.54%
OCF growth 5Y6.72%