ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWI - US04247X1028 - Common Stock
192.25 USD
+0.88 (+0.46%)
192.25 USD
0 (0%)
AWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. AWI scores excellent on profitability, but 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
AWI had positive earnings in the past year.
AWI had a positive operating cash flow in the past year.
Of the past 5 years AWI 4 years were profitable.
In the past 5 years AWI always reported a positive cash flow from operatings.
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.
AWI has a Return On Equity of 34.35%. This is amongst the best in the industry. AWI outperforms 90.48% of its industry peers.
AWI has a better Return On Invested Capital (14.43%) than 78.57% of its industry peers.
AWI had an Average Return On Invested Capital over the past 3 years of 11.73%. This is in line with the industry average of 12.61%.
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
AWI has a Profit Margin of 19.09%. This is amongst the best in the industry. AWI outperforms 97.62% of its industry peers.
AWI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.45%, AWI belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
AWI's Operating Margin has declined in the last couple of years.
AWI's Gross Margin of 40.50% is fine compared to the rest of the industry. AWI outperforms 78.57% of its industry peers.
AWI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AWI is still creating some value.
AWI has less shares outstanding than it did 1 year ago.
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 7.73 indicates that AWI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.73, AWI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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.
AWI has a better Debt to FCF ratio (1.85) than 73.81% of its industry peers.
AWI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
AWI has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.73 |
ROIC/WACC1.48
WACC9.73%
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 has a worse Current ratio (1.52) than 73.81% of its industry peers.
A Quick Ratio of 1.04 indicates that AWI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, AWI is doing worse than 66.67% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 5.36% on average over the past years.
AWI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.10%.
Measured over the past years, AWI shows a small growth in Revenue. The Revenue has been growing by 6.85% on average per year.
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
AWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.95% yearly.
AWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
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 3Y9.08%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.34 indicates a quite expensive valuation of AWI.
Based on the Price/Earnings ratio, AWI is valued a bit more expensive than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of AWI to the average of the S&P500 Index (26.92), we can say AWI is valued inline with the index average.
AWI is valuated rather expensively with a Price/Forward Earnings ratio of 22.56.
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 (23.46), we can say AWI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 22.56 |
4.2 Price Multiples
69.05% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.31 | ||
| EV/EBITDA | 20.18 |
4.3 Compensation for Growth
AWI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 14.95% in the coming years.
PEG (NY)1.34
PEG (5Y)4.91
EPS Next 2Y16.21%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
AWI has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 0.72, AWI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, AWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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.
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
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 2Y16.21%
EPS Next 3Y14.95%
192.25
+0.88 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.28%
Inst Owner Change1.11%
Ins Owners1.06%
Ins Owner Change0%
Market Cap8.29B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts75.71
Price Target215.32 (12%)
Short Float %1.67%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)0%
PT rev (3m)8.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.24%
EPS NY rev (1m)0.24%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 22.56 | ||
| P/S | 5.18 | ||
| P/FCF | 34.31 | ||
| P/OCF | 24.97 | ||
| P/B | 9.32 | ||
| P/tB | 33.82 | ||
| EV/EBITDA | 20.18 |
EPS(TTM)7.3
EY3.8%
EPS(NY)8.52
Fwd EY4.43%
FCF(TTM)5.6
FCFY2.91%
OCF(TTM)7.7
OCFY4.01%
SpS37.1
BVpS20.62
TBVpS5.69
PEG (NY)1.34
PEG (5Y)4.91
Graham Number58.19
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 | 7.73 |
F-Score8
WACC9.73%
ROIC/WACC1.48
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 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y18.73%
EBIT growth 3Y16.89%
EBIT growth 5Y4.5%
EBIT Next Year46.11%
EBIT Next 3Y20%
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 19.7% in the next year.