Armstrong World Industries
Market Cap
US$4.0b
Last Updated
2021/01/15 23:58 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with imperfect balance sheet.
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: AWI's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
7.2%
AWI
0.5%
US Building
-0.9%
US Market
1 Year Return
-17.9%
AWI
22.0%
US Building
19.6%
US Market
Return vs Industry: AWI underperformed the US Building industry which returned 23.3% over the past year.
Return vs Market: AWI underperformed the US Market which returned 21% over the past year.
Shareholder returns
| AWI | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.2% | 0.5% | -0.9% |
| 30 Day | 7.2% | 8.6% | 3.0% |
| 90 Day | 23.0% | 13.9% | 11.5% |
| 1 Year | -17.0%-17.9% | 30.0%22.0% | 22.3%19.6% |
| 3 Year | 38.3%35.3% | 45.9%34.2% | 45.3%35.7% |
| 5 Year | 161.6%121.4% | 145.3%110.8% | 124.8%99.9% |
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
5 days ago | Simply Wall St
Is There Now An Opportunity In Armstrong World Industries, Inc. (NYSE:AWI)?3 weeks ago | Simply Wall St
How Much Did Armstrong World Industries' (NYSE:AWI) CEO Pocket Last Year?1 month ago | Simply Wall St
Estimating The Fair Value Of Armstrong World Industries, Inc. (NYSE:AWI)Valuation
Is Armstrong World Industries undervalued compared to its fair value and its price relative to the market?
15.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AWI ($83.76) is trading below our estimate of fair value ($99.64)
Significantly Below Fair Value: AWI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AWI is unprofitable, so we can't compare its PE Ratio to the US Building industry average.
PE vs Market: AWI is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AWI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AWI is overvalued based on its PB Ratio (9.1x) compared to the US Building industry average (3.2x).
Next Steps
Future Growth
How is Armstrong World Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
111.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AWI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: AWI is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AWI's is expected to become profitable in the next 3 years.
Revenue vs Market: AWI's revenue (6.1% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: AWI's revenue (6.1% 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 (36.1%)
Next Steps
Past Performance
How has Armstrong World Industries performed over the past 5 years?
5.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AWI is currently unprofitable.
Growing Profit Margin: AWI is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AWI is unprofitable, but has reduced losses over the past 5 years at a rate of 5.3% per year.
Accelerating Growth: Unable to compare AWI's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AWI is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (17.1%).
Return on Equity
High ROE: AWI has a negative Return on Equity (-15.23%), as it is currently unprofitable.
Next Steps
Financial Health
How is Armstrong World Industries's financial position?
Financial Position Analysis
Short Term Liabilities: AWI's short term assets ($323.3M) exceed its short term liabilities ($132.3M).
Long Term Liabilities: AWI's short term assets ($323.3M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: AWI's debt to equity ratio (160.9%) is considered high.
Reducing Debt: AWI's debt to equity ratio has increased from 131.3% to 160.9% over the past 5 years.
Debt Coverage: AWI's debt is well covered by operating cash flow (29.4%).
Interest Coverage: AWI is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Armstrong World Industries's current dividend yield, its reliability and sustainability?
1.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AWI's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: AWI's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.84%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: AWI is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: AWI's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Vic Grizzle (58 yo)
4.83yrs
Tenure
US$5,109,755
Compensation
Mr. Victor D. Grizzle, also known as Vic, has been the Chief Executive Officer and President of Armstrong World Industries, Inc. since March 30, 2016 and has been its Director since April 2016. Mr. Grizzle...
CEO Compensation Analysis
Compensation vs Market: Vic's total compensation ($USD5.11M) is about average for companies of similar size in the US market ($USD4.98M).
Compensation vs Earnings: Vic's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.83yrs | US$5.11m | 0.56% $ 22.4m | |
| Senior VP & CFO | 4.75yrs | US$1.29m | 0.10% $ 4.0m | |
| Chief Compliance Officer | 9.5yrs | US$1.28m | 0.093% $ 3.7m | |
| Senior Vice President of Human Resources | 7.5yrs | US$1.83m | 0.031% $ 1.2m | |
| Senior Vice President of Ceilings & Wall Solutions | 4.75yrs | US$1.21m | 0.056% $ 2.2m | |
| Vice President of Treasury & Investor Relations | no data | no data | no data | |
| Director of Corporate Communications | no data | no data | no data | |
| VP & Controller | 12.5yrs | US$553.54k | 0.033% $ 1.3m |
6.2yrs
Average Tenure
55yo
Average Age
Experienced Management: AWI's management team is seasoned and experienced (6.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.83yrs | US$5.11m | 0.56% $ 22.4m | |
| Independent Director | 10.5yrs | US$215.32k | no data | |
| Independent Chairman of the Board | 3yrs | US$305.86k | no data | |
| Independent Director | 12.25yrs | US$236.71k | 0.014% $ 541.6k | |
| Independent Director | 4.33yrs | US$205.82k | 0.018% $ 726.4k | |
| Independent Director | 8.92yrs | US$224.81k | 0.0088% $ 354.4k | |
| Independent Director | 1.5yrs | US$150.00k | no data | |
| Independent Director | 4.75yrs | US$200.46k | no data | |
| Independent Director | 1.5yrs | US$150.00k | no data |
4.8yrs
Average Tenure
60yo
Average Age
Experienced Board: AWI's board of directors are considered experienced (4.8 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$4.009b
- Shares outstanding: 47.86m
- 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 |
| 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, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 23:58 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.