Armstrong World (AWI) AI Stock Analysis

• Market Cap: $8.19B
• Dividend Yield: 0.69%
• Average Volume (3M): 295.42K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.96
• Revenue Growth: 15.10%
• EPS Growth: 23.35%
• Country: US
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 2.05
• Shares Outstanding: 43,128,040
• 10 Day Avg. Volume: 271,975
• 30 Day Avg. Volume: 295,418
• PEG Ratio: 1.10
• Price to Book (P/B): 8.16
• Price to Sales (P/S): 4.27
• P/FCF Ratio: 33.57
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 4.74
• Enterprise Value/Gross Profit: 11.69
• Enterprise Value/Ebitda: 13.92
• 1Y Price Target: $207.25
• Price Target Upside: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $216.00 ▲(13.43% Upside)

Armstrong World Industries shows strong financial performance and positive earnings call highlights, driving a solid overall score. However, technical indicators suggest potential short-term weakness, and the valuation appears high, which tempers the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial stability and expansion.

Innovative Product Development

Innovation in energy-saving products positions Armstrong World as a leader in sustainable building solutions, appealing to environmentally conscious consumers and driving future growth.

Strong Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns, enhancing long-term business resilience.

Negative Factors

Market Uncertainty

Economic uncertainties, including tariffs and inflation, may impact demand and profitability, posing risks to sustained growth and financial performance.

Tariffs Impact

Tariff-related cost increases could pressure margins and competitiveness, necessitating strategic adjustments to maintain profitability and market position.

Input Cost Inflation

Rising input costs may erode margins if not offset by pricing strategies or operational efficiencies, challenging long-term profitability.

Armstrong World Business Overview & Revenue Model

Company Description

Armstrong World Industries, Inc. (AWI) is a leading manufacturer of ceilings and flooring products, primarily serving the commercial and residential building markets. The company operates through two main segments: Architectural Specialties and Mineral Fiber. AWI's core products include ceiling tiles, suspension systems, and flooring solutions, which are designed to enhance aesthetic appeal, acoustics, and energy efficiency in various spaces, ranging from offices to schools and healthcare facilities.

How the Company Makes Money

Armstrong World Industries generates revenue through the sale of its diverse range of ceiling and flooring products. The company's primary revenue streams include direct sales to contractors, distributors, and retailers, as well as sales through various building supply channels. Additionally, AWI benefits from partnerships with architects, designers, and builders, which enhance its market penetration and visibility in new construction and renovation projects. The company also invests in product innovation and sustainability initiatives, which help to attract environmentally conscious customers and maintain a competitive edge in the industry. Furthermore, AWI's strategic acquisitions and collaborations with other firms contribute to its growth and expansion into new markets, thereby bolstering its earnings.

Armstrong World Financial Statement Overview

Summary

Armstrong World demonstrates strong financial performance with consistent revenue growth, high profitability margins, and improved balance sheet stability. The company effectively manages its cash flows, supporting its growth trajectory and financial health. Potential risks are mitigated by the reduced leverage and strong equity position.

Income Statement

Armstrong World has shown consistent revenue growth, with a TTM revenue growth rate of 2.47%. The company maintains strong profitability with a gross profit margin of 40.5% and a net profit margin of 19.1% in the TTM period. EBIT and EBITDA margins are also robust at 26.7% and 34.0%, respectively, indicating efficient operations and cost management.

Balance Sheet

The company has improved its financial stability, with a significant reduction in the debt-to-equity ratio to 0.12 in the TTM period, down from 0.79 in the previous year. Return on equity is strong at 37.3%, reflecting effective use of shareholder funds. The equity ratio stands at 46.9%, indicating a solid capital structure.

Cash Flow

Armstrong World exhibits healthy cash flow management, with a free cash flow growth rate of 10.6% in the TTM period. The operating cash flow to net income ratio is 1.27, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 0.73, indicating efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.45B	1.30B	1.23B	1.11B	936.90M
Gross Profit	648.10M	581.60M	497.00M	449.30M	405.90M	333.20M
EBITDA	544.40M	495.60M	434.30M	368.40M	370.60M	-13.00M
Net Income	305.40M	264.90M	223.70M	199.60M	185.00M	-84.20M
Balance Sheet
Total Assets	1.89B	1.84B	1.67B	1.69B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	90.10M	79.30M	70.80M	106.00M	98.10M	136.90M
Total Debt	109.90M	599.90M	640.40M	687.00M	671.60M	755.70M
Total Liabilities	1.00B	1.09B	1.08B	1.15B	1.19B	1.27B
Stockholders Equity	889.20M	757.10M	591.80M	535.00M	519.70M	450.90M
Cash Flow
Free Cash Flow	241.70M	184.00M	149.70M	107.60M	107.40M	163.40M
Operating Cash Flow	332.10M	266.80M	233.50M	182.40M	187.20M	218.80M
Investing Cash Flow	-1.30M	-79.30M	-10.40M	28.20M	-13.90M	-141.10M
Financing Cash Flow	-313.90M	-177.60M	-258.60M	-201.90M	-212.10M	13.50M

Armstrong World Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 190.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Negative. The current price of 190.43 is below the 20-day moving average (MA) of 190.80, below the 50-day MA of 194.14, and above the 200-day MA of 167.68, indicating a neutral trend. The MACD of -3.82 indicates Positive momentum. The RSI at 28.66 is Positive, neither overbought nor oversold. The STOCH value of 9.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AWI.

Armstrong World Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMS	74 Outperform	$10.96B	24.03	27.09%	0.50%	2.48%	-6.92%
AWI	73 Outperform	$8.19B	27.20	38.03%	0.69%	15.10%	23.35%
SSD	69 Neutral	$6.57B	19.28	17.82%	0.65%	4.26%	8.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	63 Neutral	$7.67B	78.07	12.08%	0.40%	8.77%	-47.50%
MAS	53 Neutral	$13.08B	16.14	―	2.10%	-3.62%	3.41%
OC	51 Neutral	$8.15B	―	-3.27%	2.79%	3.47%	-148.53%

Armstrong World Corporate Events

Armstrong World Industries Reports Record Q3 Earnings

Armstrong World Industries’ recent earnings call painted a picture of robust performance, showcasing record-setting sales and earnings. The company demonstrated strong segment performances and strategic acquisitions, although it faced challenges from timing-related expenses and inflationary pressures that impacted margins.

Armstrong World Industries Reports Strong Q3 2025 Results

Armstrong World Industries, Inc. is a leading company in the Americas specializing in the design and manufacture of innovative interior and exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions. The company is renowned for its commitment to enhancing building aesthetics, acoustics, and sustainability.

Armstrong World Reports Strong Q3 Sales Growth

On October 28, 2025, Armstrong World Industries reported a 10% increase in third-quarter net sales to $425 million, driven by growth in both Architectural Specialties and Mineral Fiber segments. The company also saw a 5% rise in operating income and a 13% increase in diluted net earnings per share, attributing these results to strong operational execution and strategic acquisitions, which have positioned it well despite market challenges.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Armstrong World Expands Board with New Appointment

On October 22, 2025, Armstrong World Industries announced the appointment of Kevin P. Holleran to its Board of Directors, expanding the board to eight members. Holleran, who brings over 30 years of leadership experience from companies like Hayward Holdings and Textron Inc., will serve on the Management Development and Compensation and Nominating, Governance and Social Responsibility committees. Additionally, the board welcomed Kathleen E. Pitre, elected in June 2025, who brings extensive experience from her tenure at Ball Corporation. These appointments are expected to bolster Armstrong’s strategic growth and operational excellence. Concurrently, the company updated its nonemployee director compensation program, increasing the annual equity retainer and the Chair’s annual retainer, effective from the 2026 annual meeting of shareholders.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Armstrong World Increases Quarterly Dividend by 10%

On October 22, 2025, Armstrong World Industries announced a 10% increase in its quarterly cash dividend to $0.339 per share, payable on November 20, 2025, to stockholders of record as of November 6, 2025. This marks the seventh consecutive annual increase, reflecting the Board’s confidence in the company’s growth strategy and cash flow generation capabilities. The decision underscores Armstrong’s commitment to returning cash to shareholders as part of its disciplined capital allocation approach.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Armstrong World Acquires Geometrik Manufacturing Inc.

On September 18, 2025, Armstrong World Industries announced the acquisition of Geometrik Manufacturing Inc., a Canadian company known for its wood acoustical ceiling and wall systems. This acquisition is expected to expand Armstrong’s wood manufacturing capabilities and product portfolio in North America, leveraging Geometrik’s expertise in wood species like Western Hemlock. The move is part of Armstrong’s strategy to accelerate growth in the wood product category and enhance its offerings in biophilic design, which is increasingly popular among designers and architects. This marks the 13th acquisition in Armstrong’s Architectural Specialties segment since 2016, funded by available cash, with District Capital Partners as the buy-side adviser.

The most recent analyst rating on (AWI) stock is a Buy with a $230.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Armstrong World Releases Updated Investor Presentation

On September 3, 2025, Armstrong World Industries released an updated Investor Presentation on its website ahead of upcoming investor meetings. The presentation outlines the company’s financial performance, emphasizing its strong market position and strategic focus on sustainability and innovation. Armstrong World Industries highlights its commitment to renewable energy and reducing environmental impacts, while also showcasing its broad product portfolio and strong relationships with architects and designers. The company aims to continue its growth trajectory through strategic acquisitions and a focus on high-value, innovative products.

The most recent analyst rating on (AWI) stock is a Buy with a $222.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.