Armstrong World Industries
Market Cap
US$5.1b
Last Updated
2021/07/31 23:04 UTC
Data Sources
Company Financials +
Executive Summary
Armstrong World Industries, Inc., together with its subsidiaries, designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin America. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Armstrong World Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AWI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AWI's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
2.4%
AWI
1.5%
US Building
-0.5%
US Market
1 Year Return
51.9%
AWI
68.0%
US Building
35.9%
US Market
Return vs Industry: AWI underperformed the US Building industry which returned 68.1% over the past year.
Return vs Market: AWI exceeded the US Market which returned 35.9% over the past year.
Shareholder returns
| AWI | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 1.5% | -0.5% |
| 30 Day | -1.2% | 3.2% | 0.09% |
| 90 Day | 4.4% | 6.8% | 3.2% |
| 1 Year | 53.5%51.9% | 70.0%68.0% | 38.0%35.9% |
| 3 Year | 59.7%55.5% | 98.0%80.6% | 62.8%52.6% |
| 5 Year | 151.3%144.8% | 131.3%99.2% | 121.2%96.9% |
Long-Term Price Volatility Vs. Market
How volatile is Armstrong World Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Armstrong World Industries, Inc. (NYSE:AWI) Looks Interesting, And It's About To Pay A Dividend2 weeks ago | Simply Wall St
Armstrong World Industries (NYSE:AWI) Has A Somewhat Strained Balance Sheet1 month ago | Simply Wall St
Here's Why Armstrong World Industries, Inc.'s (NYSE:AWI) CEO Compensation Is The Least Of Shareholders' ConcernsValuation
Is Armstrong World Industries undervalued compared to its fair value and its price relative to the market?
20.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AWI ($108.18) is trading below our estimate of fair value ($135.29)
Significantly Below Fair Value: AWI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AWI is poor value based on its PE Ratio (28.6x) compared to the US Building industry average (23.6x).
PE vs Market: AWI is poor value based on its PE Ratio (28.6x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: AWI is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: AWI is overvalued based on its PB Ratio (10.4x) compared to the US Building industry average (2.7x).
Future Growth
How is Armstrong World Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AWI's forecast earnings growth (16.4% per year) is above the savings rate (2%).
Earnings vs Market: AWI's earnings (16.4% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: AWI's earnings are forecast to grow, but not significantly.
Revenue vs Market: AWI's revenue (9.1% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: AWI's revenue (9.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AWI's Return on Equity is forecast to be high in 3 years time (34.5%)
Past Performance
How has Armstrong World Industries performed over the past 5 years?
-7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AWI has high quality earnings.
Growing Profit Margin: AWI became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: AWI's earnings have declined by 7.7% per year over the past 5 years.
Accelerating Growth: AWI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: AWI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (26.4%).
Return on Equity
High ROE: Whilst AWI's Return on Equity (36.44%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Armstrong World Industries's financial position?
Financial Position Analysis
Short Term Liabilities: AWI's short term assets ($317.5M) exceed its short term liabilities ($177.6M).
Long Term Liabilities: AWI's short term assets ($317.5M) do not cover its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: AWI's debt to equity ratio (140.7%) is considered high.
Reducing Debt: AWI's debt to equity ratio has reduced from 434.1% to 140.7% over the past 5 years.
Debt Coverage: AWI's debt is well covered by operating cash flow (31.7%).
Interest Coverage: AWI's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Dividend
What is Armstrong World Industries's current dividend yield, its reliability and sustainability?
0.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AWI's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: AWI's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AWI has been paying a dividend for less than 10 years.
Growing Dividend: AWI's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.9%), AWI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AWI's dividends in 3 years are forecast to be well covered by earnings (19.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Vic Grizzle (59 yo)
5.33yrs
Tenure
US$5,073,042
Compensation
Mr. Victor D. Grizzle, also known as Vic, has been the Chief Executive Officer and President of Armstrong World Industries, Inc. since March 30, 2016 and Director since April 2016. Mr. Grizzle served as an...
CEO Compensation Analysis
Compensation vs Market: Vic's total compensation ($USD5.07M) is about average for companies of similar size in the US market ($USD6.47M).
Compensation vs Earnings: Vic's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AWI's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: AWI's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Armstrong World Industries, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Armstrong World Industries, Inc.
- Ticker: AWI
- Exchange: NYSE
- Founded: 1891
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$5.150b
- Shares outstanding: 47.60m
- Website: https://www.armstrongceilings.com
Number of Employees
Location
- Armstrong World Industries, Inc.
- 2500 Columbia Avenue
- Lancaster
- Pennsylvania
- 17603
- United States
Listings
Biography
Armstrong World Industries, Inc., together with its subsidiaries, designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildin...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 23:04 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.