Armstrong World Industries
Market Cap
US$3.3b
Last Updated
2020/04/04 08:04 UTC
Data Sources
Company Financials +
Executive Summary
Armstrong World Industries, Inc. 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.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-14.8%
AWI
-6.1%
US Building
-2.0%
US Market
1 Year Return
-18.9%
AWI
-24.6%
US Building
-15.1%
US Market
Return vs Industry: AWI exceeded the US Building industry which returned -19.4% over the past year.
Return vs Market: AWI matched the US Market which returned -13.6% over the past year.
Shareholder returns
| AWI | Industry | Market | |
|---|---|---|---|
| 7 Day | -14.8% | -6.1% | -2.0% |
| 30 Day | -37.7% | -35.1% | -19.7% |
| 90 Day | -29.2% | -35.0% | -23.2% |
| 1 Year | -18.3%-18.9% | -23.4%-24.6% | -13.4%-15.1% |
| 3 Year | 55.2%53.2% | -21.0%-24.6% | 10.9%3.7% |
| 5 Year | 41.1%20.5% | -6.6%-18.6% | 28.4%14.4% |
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
1 day ago | Simply Wall St
What Is Armstrong World Industries's (NYSE:AWI) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
Armstrong World Industries, Inc. (NYSE:AWI): What Does Its Beta Value Mean For Your Portfolio?3 weeks ago | Simply Wall St
These 4 Measures Indicate That Armstrong World Industries (NYSE:AWI) Is Using Debt Reasonably WellValuation
Is Armstrong World Industries undervalued compared to its fair value and its price relative to the market?
31.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AWI ($73.07) is trading below our estimate of fair value ($99.12)
Significantly Below Fair Value: AWI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AWI is good value based on its PE Ratio (14.7x) compared to the Building industry average (16.5x).
PE vs Market: AWI is poor value based on its PE Ratio (14.7x) compared to the US market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: AWI is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: AWI is overvalued based on its PB Ratio (9.6x) compared to the US Building industry average (1.2x).
Next Steps
Future Growth
How is Armstrong World Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AWI's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).
Earnings vs Market: AWI's earnings (3.5% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: AWI's earnings are forecast to grow, but not significantly.
Revenue vs Market: AWI's revenue (2.8% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: AWI's revenue (2.8% 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 (29.6%)
Next Steps
Past Performance
How has Armstrong World Industries performed over the past 5 years?
31.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AWI has high quality earnings.
Growing Profit Margin: AWI's current net profit margins (23.3%) are higher than last year (19.4%).
Past Earnings Growth Analysis
Earnings Trend: AWI's earnings have grown significantly by 31% per year over the past 5 years.
Accelerating Growth: AWI's earnings growth over the past year (27.9%) is below its 5-year average (31% per year).
Earnings vs Industry: AWI earnings growth over the past year (27.9%) exceeded the Building industry -15.9%.
Return on Equity
High ROE: Whilst AWI's Return on Equity (66.4%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Armstrong World Industries's financial position?
Financial Position Analysis
Short Term Liabilities: AWI's short term assets ($244.4M) exceed its short term liabilities ($155.2M).
Long Term Liabilities: AWI's short term assets ($244.4M) do not cover its long term liabilities ($973.2M).
Debt to Equity History and Analysis
Debt Level: AWI's debt to equity ratio (171.7%) is considered high.
Reducing Debt: AWI's debt to equity ratio has increased from 162.2% to 171.7% over the past 5 years.
Debt Coverage: AWI's debt is well covered by operating cash flow (29.2%).
Interest Coverage: AWI's interest payments on its debt are well covered by EBIT (7.2x coverage).
Balance Sheet
Inventory Level: AWI has a high level of physical assets or inventory.
Debt Coverage by Assets: AWI's debt is not covered by short term assets (assets are 0.4x debt).
Next Steps
Dividend
What is Armstrong World Industries's current dividend yield, its reliability and sustainability?
1.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AWI's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).
High Dividend: AWI's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (5.56%).
Stability and Growth of Payments
Stable Dividend: AWI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AWI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AWI is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AWI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.4yrs
Average management tenure
CEO
Vic Grizzle (57yo)
4.08s
Tenure
US$4,730,319
Compensation
Mr. Victor D. Grizzle, also known as Vic, has been the Chief Executive Officer and President of Armstrong World Industries, Inc. since March 30, 2016 and has been its Director since April 2016. Mr. Grizzle ...
CEO Compensation Analysis
Compensation vs Market: Vic's total compensation ($USD4.73M) is about average for companies of similar size in the US market ($USD5.63M).
Compensation vs Earnings: Vic's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.08yrs | US$4.73m | 0.40% $13.1m | |
| Senior VP & CFO | 4yrs | US$1.18m | 0.075% $2.4m | |
| Chief Compliance Officer | 8.75yrs | US$1.52m | 0.072% $2.4m | |
| Senior Vice President of Human Resources | 6.75yrs | US$854.41k | 0.019% $605.2k | |
| Senior Vice President of Ceilings & Wall Solutions | 4yrs | US$1.09m | 0.051% $1.7m | |
| Vice President of Treasury & Investor Relations | no data | no data | no data | |
| Director of Corporate Communications | no data | no data | no data | |
| VP & Controller | 11.75yrs | US$553.54k | 0.022% $711.5k |
5.4yrs
Average Tenure
54yo
Average Age
Experienced Management: AWI's management team is seasoned and experienced (5.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.08yrs | US$4.73m | 0.40% $13.1m | |
| Independent Director | 9.75yrs | US$199.57k | no data | |
| Independent Director | 13.58yrs | US$218.84k | 0.049% $1.6m | |
| Independent Chairman of the Board | 2.25yrs | US$264.57k | no data | |
| Independent Director | 11.5yrs | US$220.04k | 0.010% $333.6k | |
| Independent Director | 3.58yrs | US$205.00k | 0.020% $661.6k | |
| Independent Director | 8.17yrs | US$207.63k | 0.0088% $287.3k | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 4yrs | US$195.98k | no data | |
| Independent Director | 0.75yr | no data | no data |
4.0yrs
Average Tenure
59.5yo
Average Age
Experienced Board: AWI's board of directors are considered experienced (4 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.
Recent Insider Transactions
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$3.261b
- Shares outstanding: 47.99m
- Website: https://www.armstrongceilings.com
Number of Employees
Location
- Armstrong World Industries, Inc.
- 2500 Columbia Avenue
- Lancaster
- Pennsylvania
- 17603
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AWI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 2006 |
| 91A | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2006 |
| 91A | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Oct 2006 |
| AWII34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REP 1 COM STK USD0.01 | BR | BRL | May 2019 |
Biography
Armstrong World Industries, Inc. 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. The company operates through Mineral Fiber and Architectural Specialties segments. The company produces suspended mineral fiber, soft fiber, fiberglass wool, and metal ceiling systems; ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings and walls for use in commercial settings; and acoustical and architectural cast ceilings, walls, facades, columns and moldings, and structural solutions. Armstrong World Industries, Inc. sells its commercial ceiling and architectural specialties products to resale distributors and ceiling system contractors; and residential ceiling products to wholesalers and retailers, such as large home centers. The company was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 08:04 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.