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Armstrong World Industries

Market Cap

US$4.5b

Last Updated

2021/04/11 22:15 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


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 +/- 5% a week.

Volatility Over Time: AWI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

AWI

2.3%

US Building

2.1%

US Market


1 Year Return

12.2%

AWI

102.6%

US Building

56.3%

US Market

Return vs Industry: AWI underperformed the US Building industry which returned 102.6% over the past year.

Return vs Market: AWI underperformed the US Market which returned 56.3% over the past year.


Shareholder returns

AWIIndustryMarket
7 Day2.2%2.3%2.1%
30 Day-0.8%4.4%2.4%
90 Day19.7%13.7%6.8%
1 Year13.5%12.2%105.3%102.6%59.1%56.3%
3 Year71.9%67.8%90.2%75.1%65.7%55.1%
5 Year129.9%124.4%139.4%107.7%122.3%97.7%

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

Valuation

Is Armstrong World Industries undervalued compared to its fair value and its price relative to the market?

10.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AWI ($94.55) is trading above our estimate of fair value ($85.29)

Significantly Below Fair Value: AWI is trading above our estimate of fair value.


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 (10x) compared to the US Building industry average (3.2x).


Future Growth

How is Armstrong World Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

61.1%

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 (8.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AWI's revenue (8.2% 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 (32.6%)


Past Performance

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

-5.8%

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, and losses have increased over the past 5 years at a rate of 5.8% 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 (21.2%).


Return on Equity

High ROE: AWI has a negative Return on Equity (-18.65%), as it is currently unprofitable.


Financial Health

How is Armstrong World Industries's financial position?


Financial Position Analysis

Short Term Liabilities: AWI's short term assets ($311.8M) exceed its short term liabilities ($172.3M).

Long Term Liabilities: AWI's short term assets ($311.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: AWI's debt to equity ratio (165.1%) is considered high.

Reducing Debt: AWI's debt to equity ratio has increased from 129.9% to 165.1% 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


Dividend

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

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AWI's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: AWI's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 (19.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Vic Grizzle (58 yo)

5yrs

Tenure

US$5,109,755

Compensation

Mr. Victor D. Grizzle, also known as Vic, has been the Chief Executive Officer, President and Director of Armstrong World Industries, Inc. since April 2016. Mr. Grizzle served as an Executive Vice Presiden...


CEO Compensation Analysis

Compensation vs Market: Vic's total compensation ($USD5.11M) is about average for companies of similar size in the US market ($USD5.06M).

Compensation vs Earnings: Vic's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AWI's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: AWI's board of directors are considered experienced (5 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$4.518b
  • Shares outstanding: 47.79m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:15
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.