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Armstrong World Industries

NYSE:AWI
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AWI
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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 last earnings update was 85 days ago. More info.


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AWI Share Price and Events
7 Day Returns
-1.8%
NYSE:AWI
-1.9%
US Building
-1.2%
US Market
1 Year Returns
47.8%
NYSE:AWI
1.1%
US Building
3.3%
US Market
AWI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Armstrong World Industries (AWI) -1.8% 0.3% 10.8% 47.8% 140.3% 98.1%
US Building -1.9% 1% 3.9% 1.1% 6.9% 25.2%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • AWI outperformed the Building industry which returned 1.1% over the past year.
  • AWI outperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
AWI
Industry
5yr Volatility vs Market

Value

 Is Armstrong World Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Armstrong World Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Armstrong World Industries.

NYSE:AWI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AWI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (17.71%))
1.194
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.194 * 5.96%)
9.84%

Discounted Cash Flow Calculation for NYSE:AWI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Armstrong World Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AWI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.84%)
2020 245.70 Analyst x2 223.68
2021 292.80 Analyst x1 242.67
2022 331.08 Est @ 13.07% 249.80
2023 364.08 Est @ 9.97% 250.09
2024 392.47 Est @ 7.8% 245.43
2025 417.11 Est @ 6.28% 237.46
2026 438.85 Est @ 5.21% 227.45
2027 458.46 Est @ 4.47% 216.32
2028 476.56 Est @ 3.95% 204.71
2029 493.63 Est @ 3.58% 193.04
Present value of next 10 years cash flows $2,290.67
NYSE:AWI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $493.63 × (1 + 2.73%) ÷ (9.84% – 2.73%)
$7,128.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,128.47 ÷ (1 + 9.84%)10
$2,787.68
NYSE:AWI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,290.67 + $2,787.68
$5,078.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,078.35 / 48.96
$103.73
NYSE:AWI Discount to Share Price
Calculation Result
Value per share (USD) From above. $103.73
Current discount Discount to share price of $98.17
= -1 x ($98.17 - $103.73) / $103.73
5.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Armstrong World Industries is available for.
Intrinsic value
5%
Share price is $98.17 vs Future cash flow value of $103.73
Current Discount Checks
For Armstrong World Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Armstrong World Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Armstrong World Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Armstrong World Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Armstrong World Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AWI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.67
NYSE:AWI Share Price ** NYSE (2019-07-22) in USD $98.17
United States of America Building Industry PE Ratio Median Figure of 31 Publicly-Listed Building Companies 18.5x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Armstrong World Industries.

NYSE:AWI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AWI Share Price ÷ EPS (both in USD)

= 98.17 ÷ 3.67

26.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Armstrong World Industries is overvalued based on earnings compared to the US Building industry average.
  • Armstrong World Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Armstrong World Industries's expected growth come at a high price?
Raw Data
NYSE:AWI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
14.3%per year
United States of America Building Industry PEG Ratio Median Figure of 26 Publicly-Listed Building Companies 1.32x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:AWI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.77x ÷ 14.3%

1.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Armstrong World Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Armstrong World Industries's assets?
Raw Data
NYSE:AWI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.76
NYSE:AWI Share Price * NYSE (2019-07-22) in USD $98.17
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.21x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NYSE:AWI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AWI Share Price ÷ Book Value per Share (both in USD)

= 98.17 ÷ 5.76

17.04x

* Primary Listing of Armstrong World Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Armstrong World Industries is overvalued based on assets compared to the US Building industry average.
X
Value checks
We assess Armstrong World Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Armstrong World Industries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Armstrong World Industries expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Armstrong World Industries expected to grow at an attractive rate?
  • Armstrong World Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Armstrong World Industries's earnings growth is expected to exceed the United States of America market average.
  • Armstrong World Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AWI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AWI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 14.3%
NYSE:AWI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6.5%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 12.5%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AWI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AWI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,198 267 277 1
2020-12-31 1,136 231 245 7
2019-12-31 1,068 218 213 7
NYSE:AWI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 990 192 184
2018-12-31 975 203 189
2018-09-30 951 225 256
2018-06-30 924 217 230
2018-03-31 901 186 226
2017-12-31 894 170 220
2017-09-30 580 157 150
2017-06-30 681 147 168
2017-03-31 770 125 142
2016-12-31 837 49 99
2016-09-30 1,234 57 52
2016-06-30 1,235 89 15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Armstrong World Industries's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • Armstrong World Industries's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AWI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Armstrong World Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AWI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.60 5.60 5.60 1.00
2020-12-31 5.08 5.11 5.04 6.00
2019-12-31 4.35 4.54 4.24 6.00
NYSE:AWI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.67
2018-12-31 3.68
2018-09-30 4.92
2018-06-30 4.35
2018-03-31 4.25
2017-12-31 4.13
2017-09-30 2.78
2017-06-30 3.09
2017-03-31 2.57
2016-12-31 1.79
2016-09-30 0.93
2016-06-30 0.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Armstrong World Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Armstrong World Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Armstrong World Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Armstrong World Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Armstrong World Industries's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Armstrong World Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Armstrong World Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Armstrong World Industries's 1-year earnings growth is negative, it can't be compared to the US Building industry average.
Earnings and Revenue History
Armstrong World Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Armstrong World Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AWI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 990.10 184.20 130.40
2018-12-31 975.30 189.00 126.00
2018-09-30 950.70 256.30 142.30
2018-06-30 924.10 229.50 156.40
2018-03-31 901.10 225.60 142.40
2017-12-31 893.60 219.90 144.60
2017-09-30 580.00 149.90 93.00
2017-06-30 681.00 168.40 121.00
2017-03-31 769.70 141.50 133.20
2016-12-31 837.30 99.00 191.20
2016-09-30 1,233.90 51.60 239.90
2016-06-30 1,234.90 15.40 248.20
2016-03-31 1,226.70 13.70 254.00
2015-12-31 805.10 57.70 180.80
2015-09-30 1,521.30 50.70 284.10
2015-06-30 1,864.30 77.60 321.10
2015-03-31 2,217.30 89.10 359.70
2014-12-31 1,294.30 78.70 250.10
2014-09-30 2,396.80 128.30 365.30
2014-06-30 2,447.60 137.50 367.30
2014-03-31 2,495.10 141.50 378.30
2013-12-31 2,527.40 126.60 386.90
2013-09-30 2,671.40 98.40 431.60
2013-06-30 2,636.40 116.20 419.40
2013-03-31 2,605.20 127.70 416.10
2012-12-31 2,428.70 157.50 361.70
2012-09-30 2,629.10 144.00 418.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Armstrong World Industries made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Armstrong World Industries used its assets more efficiently than the US Building industry average last year based on Return on Assets.
  • Armstrong World Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Armstrong World Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Armstrong World Industries has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Armstrong World Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Armstrong World Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Armstrong World Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Armstrong World Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Armstrong World Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Armstrong World Industries Company Filings, last reported 3 months ago.

NYSE:AWI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 280.30 822.20 273.80
2018-12-31 261.20 825.90 325.70
2018-09-30 330.90 827.40 327.00
2018-06-30 404.10 835.00 129.00
2018-03-31 403.80 842.60 116.90
2017-12-31 419.30 850.20 159.80
2017-09-30 366.20 857.80 116.70
2017-06-30 297.30 880.40 79.90
2017-03-31 271.20 888.00 81.10
2016-12-31 266.40 874.10 141.90
2016-09-30 259.10 877.90 142.50
2016-06-30 202.40 881.40 99.40
2016-03-31 770.30 981.20 149.80
2015-12-31 768.80 998.90 216.90
2015-09-30 783.20 1,028.80 258.90
2015-06-30 747.30 1,036.50 201.60
2015-03-31 697.20 1,048.60 132.00
2014-12-31 649.10 1,053.80 185.30
2014-09-30 776.90 1,059.50 148.40
2014-06-30 738.30 1,128.60 152.60
2014-03-31 710.20 1,119.20 131.00
2013-12-31 673.20 1,079.00 112.30
2013-09-30 579.60 1,082.20 137.70
2013-06-30 778.90 1,082.50 304.70
2013-03-31 734.80 1,093.30 278.00
2012-12-31 719.10 1,096.70 336.40
2012-09-30 772.70 1,109.60 298.60
  • Armstrong World Industries's level of debt (293.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (157.5% vs 293.3% today).
  • Debt is well covered by operating cash flow (23.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).
X
Financial health checks
We assess Armstrong World Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Armstrong World Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Armstrong World Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.71%
Current annual income from Armstrong World Industries dividends. Estimated to be 0.71% next year.
If you bought $2,000 of Armstrong World Industries shares you are expected to receive $14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Armstrong World Industries's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Armstrong World Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AWI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AWI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.70 1.00
2019-12-31 0.70 1.00
NYSE:AWI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-24 0.700 0.755
2019-02-20 0.700 0.900
2018-11-06 0.700 1.082

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Armstrong World Industries is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Armstrong World Industries is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Armstrong World Industries's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Armstrong World Industries's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Armstrong World Industries's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Armstrong World Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Armstrong World Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Armstrong World Industries has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Armstrong World Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vic Grizzle
COMPENSATION $4,730,319
AGE 57
TENURE AS CEO 3.3 years
CEO Bio

Mr. Victor D. Grizzle, also known as Vic, has been Chief Executive Officer and President of Armstrong World Industries, Inc. since March 30, 2016. Mr. Grizzle served as an Executive Vice President and Chief Executive officer of Armstrong Building Products at Armstrong World Industries, Inc. from January 2011 to April 2016. He has 23 years of experience in process improvement, sales, marketing and global business leadership. He joined Armstrong from Valmont Industries, Inc. in January 2011, where he served as Group President of Global Engineered Support Structures Coatings & Tubing and President of International Division for Omaha since January 2006. He has comprehensive experience in global operations and manufacturing matters. Prior to Valmont, he served as President of the Commercial Power Division of EaglePicher Corporation. Before that, he spent 16 years at General Electric Corporation. Mr. Grizzle previously served as an American business leader for General Electric''s Silicones Division, Wilton, Conn. He has been a Director of Armstrong World Industries, Inc. since April 2016. Mr. Grizzle graduated from California Polytechnic University with a Bachelor of Science degree in Mechanical Engineering.

CEO Compensation
  • Vic's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Vic's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Armstrong World Industries management team in years:

6.2
Average Tenure
54
Average Age
  • The average tenure for the Armstrong World Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Vic Grizzle

TITLE
President
COMPENSATION
$5M
AGE
57
TENURE
3.3 yrs

Brian MacNeal

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
52
TENURE
3.3 yrs

Mark Hershey

TITLE
Chief Compliance Officer
COMPENSATION
$2M
AGE
49
TENURE
8 yrs

Ellen Romano

TITLE
Senior Vice President of Human Resources
COMPENSATION
$854K
AGE
57
TENURE
6.2 yrs

Charlie Chiappone

TITLE
Senior Vice President of Ceilings & Wall Solutions
COMPENSATION
$1M
AGE
56
TENURE
3.3 yrs

Thomas Waters

TITLE
Vice President of Corporate Finance

Mike Jenkins

TITLE
Managing Director of Asia Pacific
TENURE
6.7 yrs

Stephen McNamara

TITLE
VP & Controller
COMPENSATION
$554K
AGE
52
TENURE
11 yrs
Board of Directors Tenure

Average tenure and age of the Armstrong World Industries board of directors in years:

5.3
Average Tenure
59.5
Average Age
  • The tenure for the Armstrong World Industries board of directors is about average.
Board of Directors

Larry McWilliams

TITLE
Chairman of the Board
COMPENSATION
$265K
AGE
63
TENURE
1.5 yrs

Vic Grizzle

TITLE
President
COMPENSATION
$5M
AGE
57
TENURE
3.3 yrs

John Roberts

TITLE
Independent Director
COMPENSATION
$219K
AGE
74
TENURE
12.8 yrs

Stan Askren

TITLE
Independent Director
COMPENSATION
$220K
AGE
58
TENURE
10.8 yrs

James Melville

TITLE
Independent Director
COMPENSATION
$208K
AGE
67
TENURE
7.4 yrs

Roy Templin

TITLE
Independent Director
COMPENSATION
$205K
AGE
59
TENURE
2.8 yrs

Tao Huang

TITLE
Independent Director
COMPENSATION
$200K
AGE
57
TENURE
9 yrs

Cherryl Thomas

TITLE
Independent Director
COMPENSATION
$196K
AGE
72
TENURE
3.3 yrs

Barb Loughran

TITLE
Independent Director
AGE
55

Wayne Shurts

TITLE
Independent Director
AGE
60
Who owns this company?
Recent Insider Trading
  • Armstrong World Industries individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. May 19 Sell Ellen Romano Individual 06. May 19 06. May 19 -6,500 $88.21 $-573,358
03. May 19 Sell ValueAct Capital Management L.P. Company 01. May 19 01. May 19 -63,910 $86.88 $-5,552,501
13. Mar 19 Sell ValueAct Capital Management L.P. Company 11. Mar 19 11. Mar 19 -456,000 $73.25 $-33,402,000
01. Mar 19 Sell ValueAct Capital Management L.P. Company 27. Feb 19 27. Feb 19 -1,725,000 $73.69 $-127,115,250
13. Nov 18 Sell ValueAct Capital Management L.P. Company 09. Nov 18 09. Nov 18 -2,980,000 $68.15 $-203,087,000
06. Sep 18 Sell ValueAct Capital Management L.P. Company 31. Aug 18 31. Aug 18 -100,000 $70.03 $-7,003,000
23. Aug 18 Sell ValueAct Capital Management L.P. Company 21. Aug 18 21. Aug 18 -30,000 $70.11 $-2,103,300
09. Aug 18 Sell ValueAct Capital Management L.P. Company 07. Aug 18 07. Aug 18 -1,500,000 $69.20 $-103,800,000
X
Management checks
We assess Armstrong World Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Armstrong World Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell Armstrong World Industries, Inc. (NYSE:AWI) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to Armstrong World Industries, Inc.'s (NYSE:AWI), to help you decide if the stock is worth further research. … Check out our latest analysis for Armstrong World Industries How Do You Calculate A P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Armstrong World Industries: P/E of 27.02 = $99.09 ÷ $3.67 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

Is It Time To Consider Buying Armstrong World Industries, Inc. (NYSE:AWI)?

Armstrong World Industries is currently overpriced based on my relative valuation model. … Since Armstrong World Industries’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … If you believe AWI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Should You Be Excited About Armstrong World Industries, Inc.'s (NYSE:AWI) 66% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Armstrong World Industries: 66% = US$184m ÷ US$280m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Armstrong World Industries Have A Good Return On Equity? … Combining Armstrong World Industries's Debt And Its 66% Return On Equity Armstrong World Industries does use a significant amount of debt to increase returns.

Simply Wall St -

Does Armstrong World Industries, Inc.'s (NYSE:AWI) CEO Salary Reflect Performance?

Check out our latest analysis for Armstrong World Industries How Does Vic Grizzle's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Armstrong World Industries has changed from year to year. … Boasting a total shareholder return of 143% over three years, Armstrong World Industries, Inc.

Simply Wall St -

Is Armstrong World Industries, Inc. (NYSE:AWI) Undervalued After Accounting For Its Future Growth?

But, to be able to properly assess the value of a high-growth stock such as Armstrong World Industries, we must incorporate its earnings growth in our valuation. … A PE ratio of 24.29x and expected year-on-year earnings growth of 14% give Armstrong World Industries a higher PEG ratio of 1.69x. … Based on this growth, Armstrong World Industries's stock can be considered a bit overvalued , based on its fundamentals.

Simply Wall St -

Have Insiders Been Selling Armstrong World Industries, Inc. (NYSE:AWI) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Armstrong World Industries, Inc. … Check out our latest analysis for Armstrong World Industries Armstrong World Industries Insider Transactions Over The Last Year The Senior Vice President of Human Resources, Ellen Romano, made the biggest insider sale in the last 12 months. … Does Armstrong World Industries Boast High Insider Ownership?

Simply Wall St -

Does Armstrong World Industries, Inc. (NYSE:AWI) Have A Particularly Volatile Share Price?

(NYSE:AWI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Has Armstrong World Industries, Inc. (NYSE:AWI) Been Employing Capital Shrewdly?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Despite Its High P/E Ratio, Is Armstrong World Industries, Inc. (NYSE:AWI) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Armstrong World Industries, Inc.'s (NYSE:AWI) P/E ratio and reflect on what it tells us about the company's share price. … Armstrong World Industries has a P/E ratio of 22.75, based on the last twelve months.

Simply Wall St -

If You Had Bought Armstrong World Industries (NYSE:AWI) Stock Three Years Ago, You Could Pocket A 60% Gain Today

(NYSE:AWI) shareholders have seen the share price rise 60% over three years, well in excess of the market return (37%, not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Armstrong World Industries was able to grow its EPS at 52% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

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.

Details
Name: Armstrong World Industries, Inc.
AWI
Exchange: NYSE
Founded: 1891
$4,806,330,063
48,959,255
Website: http://www.armstrongceilings.com
Address: Armstrong World Industries, Inc.
2500 Columbia Avenue,
Lancaster,
Pennsylvania, 17603,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AWI Common Stock New York Stock Exchange US USD 11. Oct 2006
DB 91A Common Stock Deutsche Boerse AG DE EUR 11. Oct 2006
BOVESPA AWII34 BDR EACH REP 1 COM STK USD0.01 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
2,400
Armstrong World Industries employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 00:07
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.