ARMSTRONG WORLD INDUSTRIES (AWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AWI - US04247X1028 - Common Stock
196.12 USD
-0.38 (-0.19%)
196.12 USD
0 (0%)
Overall AWI gets a fundamental rating of 6 out of 10. We evaluated AWI against 42 industry peers in the Building Products industry. AWI scores excellent on profitability, but 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
- In the past year AWI was profitable.
- AWI had a positive operating cash flow in the past year.
- Of the past 5 years AWI 4 years were profitable.
- Each year in the past 5 years AWI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AWI (16.13%) is better than 95.24% of its industry peers.
- Looking at the Return On Equity, with a value of 34.35%, AWI belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- With a decent Return On Invested Capital value of 14.43%, AWI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AWI is in line with the industry average of 12.63%.
- 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 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
- The Profit Margin of AWI (19.09%) is better than 97.62% of its industry peers.
- In the last couple of years the Profit Margin of AWI has declined.
- 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.
- In the last couple of years the Operating Margin of AWI has declined.
- With a decent Gross Margin value of 40.50%, AWI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- 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
- 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.
- The debt/assets ratio for AWI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.83 indicates that AWI is not in any danger for bankruptcy at the moment.
- AWI has a Altman-Z score of 7.83. This is amongst the best in the industry. AWI outperforms 85.71% of its industry peers.
- AWI has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
- The Debt to FCF ratio of AWI (1.85) is better than 73.81% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that AWI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.47, AWI is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 7.83 |
ROIC/WACC1.59
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that AWI should not have too much problems paying its short term obligations.
- AWI has a worse Current ratio (1.52) than 76.19% of its industry peers.
- A Quick Ratio of 1.04 indicates that AWI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.04, AWI is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
| 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.
- AWI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.36% yearly.
- Looking at the last year, AWI shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
- 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
- The Earnings Per Share is expected to grow by 14.95% on average over the next years. This is quite good.
- Based on estimates for the next years, AWI will show a quite strong growth in Revenue. The Revenue will grow by 9.08% on average per year.
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
- 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 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 26.87 indicates a quite expensive valuation of AWI.
- Based on the Price/Earnings ratio, AWI is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
- AWI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 23.02, which indicates a rather expensive current valuation of AWI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AWI is on the same level as its industry peers.
- AWI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 23.02 |
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 66.67% of the companies listed in the same industry.
- 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 | 35 | ||
| EV/EBITDA | 20.57 |
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)1.36
PEG (5Y)5.01
EPS Next 2Y16.21%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.69%, AWI is not a good candidate for dividend investing.
- AWI's Dividend Yield is a higher than the industry average which is at 0.67.
- With a Dividend Yield of 0.69, AWI pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector 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
5.3 Sustainability
- 17.71% of the earnings are spent on dividend by AWI. This is a low number and 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%
196.12
-0.38 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners103.44%
Inst Owner Change0.99%
Ins Owners1.06%
Ins Owner Change0%
Market Cap8.46B
Revenue(TTM)1.60B
Net Income(TTM)305.40M
Analysts75.71
Price Target215.32 (9.79%)
Short Float %1.75%
Short Ratio2.31
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)8.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 23.02 | ||
| P/S | 5.29 | ||
| P/FCF | 35 | ||
| P/OCF | 25.47 | ||
| P/B | 9.51 | ||
| P/tB | 34.5 | ||
| EV/EBITDA | 20.57 |
EPS(TTM)7.3
EY3.72%
EPS(NY)8.52
Fwd EY4.34%
FCF(TTM)5.6
FCFY2.86%
OCF(TTM)7.7
OCFY3.93%
SpS37.1
BVpS20.62
TBVpS5.69
PEG (NY)1.36
PEG (5Y)5.01
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 | 7.83 |
F-Score8
WACC9.09%
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 3Y9.08%
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.
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 26.87 and the Price/Book (PB) ratio is 9.51.
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%.