NYSE:AWI

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Armstrong World Industries

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.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

5.7%

AWI

5.6%

US Building

3.0%

US Market


1 Year Return

-15.0%

AWI

-3.3%

US Building

9.9%

US Market

Return vs Industry: AWI underperformed the US Building industry which returned -3.2% over the past year.

Return vs Market: AWI underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

AWIIndustryMarket
7 Day5.7%5.6%3.0%
30 Day-0.09%12.0%8.2%
90 Day-27.5%-8.7%0.4%
1 Year-14.3%-15.0%4.1%-3.3%12.4%9.9%
3 Year74.8%72.1%9.5%-0.5%31.0%22.3%
5 Year59.9%36.2%33.3%11.7%58.1%40.3%

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?

29.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AWI ($75.39) is trading below our estimate of fair value ($106.81)

Significantly Below Fair Value: AWI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AWI is unprofitable, so we can't compare its PE Ratio to the 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 (9.7x) compared to the US Building industry average (1.8x).


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?

114.7%

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 (2.2%).

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 (3.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: AWI's revenue (3.9% 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 (39.6%)


Next Steps

Past Performance

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

23.1%

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 23.1% 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 (-6.8%).


Return on Equity

High ROE: AWI has a negative Return on Equity (-4.51%), 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 ($345.4M) exceed its short term liabilities ($169.8M).

Long Term Liabilities: AWI's short term assets ($345.4M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: AWI's debt to equity ratio (202.8%) is considered high.

Reducing Debt: AWI's debt to equity ratio has increased from 150.1% to 202.8% over the past 5 years.

Debt Coverage: AWI's debt is well covered by operating cash flow (25.8%).

Interest Coverage: Insufficient data to determine if AWI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AWI's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: AWI's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (4.52%).


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 (18.4% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Vic Grizzle (57yo)

4.17yrs

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 ($USD5.11M) is about average for companies of similar size in the US market ($USD5.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Victor Grizzle
President4.17yrsUS$5.11m0.56% $20.2m
Brian MacNeal
Senior VP & CFO4yrsUS$1.29m0.10% $3.6m
Mark Hershey
Chief Compliance Officer8.83yrsUS$1.28m0.093% $3.4m
Ellen Romano
Senior Vice President of Human Resources7yrsUS$1.83m0.031% $1.1m
Charles Chiappone
Senior Vice President of Ceilings & Wall Solutions4.17yrsUS$1.21m0.069% $2.5m
Thomas Waters
Vice President of Treasury & Investor Relationsno datano datano data
Jennifer Johnson
Director of Corporate Communicationsno datano datano data
Stephen McNamara
VP & Controller11.83yrsUS$553.54k0.033% $1.2m

5.6yrs

Average Tenure

54yo

Average Age

Experienced Management: AWI's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Victor Grizzle
President4.17yrsUS$5.11m0.56% $20.2m
Tao Huang
Independent Director9.83yrsUS$215.32kno data
John Roberts
Independent Director13.58yrsUS$239.24k0.00098% $35.3k
Larry McWilliams
Independent Chairman of the Board2.33yrsUS$305.86kno data
Stanley Askren
Independent Director11.58yrsUS$236.71k0.014% $487.5k
Roy Templin
Independent Director3.58yrsUS$205.82k0.018% $653.8k
James Melville
Independent Director8.17yrsUS$224.81k0.0088% $318.8k
Wayne Shurts
Independent Director0.83yrUS$150.00kno data
Cherryl Thomas
Independent Director4yrsUS$200.46kno data
Barbara Loughran
Independent Director0.83yrUS$150.00kno 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.


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$3.606b
  • Shares outstanding: 47.83m
  • Website: https://www.armstrongceilings.com

Number of Employees


Location

  • Armstrong World Industries, Inc.
  • 2500 Columbia Avenue
  • Lancaster
  • Pennsylvania
  • 17603
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2006
91ADB (Deutsche Boerse AG)YesCommon StockDEEUROct 2006
AWII34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM STK USD0.01BRBRLMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 04:59
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.