Armstrong World (AWI) AI Stock Analysis

• Market Cap: $6.86B
• Dividend Yield: 0.76%
• Average Volume (3M): 306.34K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.04
• Revenue Growth: 14.55%
• EPS Growth: 17.54%
• Country: US
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 92
• Industry: Construction
• EPS (TTM): 1.66
• Shares Outstanding: 43,426,815
• 10 Day Avg. Volume: 232,505
• 30 Day Avg. Volume: 306,338
• PEG Ratio: 6.64
• Price to Book (P/B): 8.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.02
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 11.72
• Enterprise Value/Ebitda: 4.24
• 1Y Price Target: $161.67
• Price Target Upside: 2.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $172.00 ▲(8.93%Upside)

Armstrong World Industries exhibits strong financial performance with consistent revenue growth and profitability, supported by effective debt management and strategic acquisitions. While technical analysis indicators suggest caution due to potential overbought conditions, the company's valuation is reasonable, and the earnings call underscores confidence in continued growth. Collectively, these factors result in a solid overall stock score.

Positive Factors

Architectural Specialties Growth

Significant growth potential exists in the architectural specialty market, where AWI holds a 20% share and sees opportunities for growth in new verticals and materials.

Earnings

AWI is well positioned to grow earnings and cash flow even if the macro environment remains challenging.

Product Innovation

Templok energy saving ceiling panels can reduce heating and cooling costs by up to 15% and carry 2-3x AUV compared to traditional ceiling tiles.

Negative Factors

Market Demand

Management sees end markets 'moving sideways', guiding to lower mineral fiber volumes due to weaker discretionary activity given the macro uncertainty.

Market Volatility

Management expects near-term choppiness for end markets, which could impact growth stability.

Armstrong World Business Overview & Revenue Model

Company Description

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. The company operates through Mineral Fiber and Architectural Specialties segments. The company produces suspended mineral fiber, soft fiber, fiberglass wool, and metal ceiling systems, as well as wood, wood fiber, glass-reinforced-gypsum, and felt ceiling and wall systems; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings and walls for use in commercial settings; and acoustical controls, facades, and partitions. It 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.

How the Company Makes Money

Armstrong World Industries generates revenue through the manufacturing and sale of its ceiling and wall systems. The company's primary revenue streams include sales from its core mineral fiber and architectural specialties segments. AWI sells its products to a broad range of customers, including contractors, distributors, and retailers, who then supply them to end-users in the commercial and residential sectors. Additionally, the company benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. AWI's focus on innovation and sustainability also plays a crucial role in attracting new business opportunities and maintaining a competitive edge in the industry.

Armstrong World Financial Statement Overview

Summary

Armstrong World demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is stable with low debt levels and impressive returns on equity. Cash flow management remains strong with positive growth and efficient cash generation from operations, positioning the company favorably in the construction industry.

Income Statement

Armstrong World shows strong revenue growth with a 4% increase in TTM (Trailing-Twelve-Months) compared to the previous year. Gross Profit Margin remains healthy at 40.44%, and Net Profit Margin is solid at 18.25%. The company maintains robust EBIT and EBITDA margins at 24.04% and 30.04%, respectively, indicating operational efficiency and profitability.

Balance Sheet

The company's balance sheet is stable with a manageable Debt-to-Equity Ratio of 0.12. The Return on Equity (ROE) is impressive at 34.54%, reflecting effective use of equity to generate profits. The Equity Ratio of 42.78% suggests a healthy balance of equity financing, though a slight increase in liabilities warrants monitoring.

Cash Flow

Armstrong World demonstrates solid cash flow management with a Free Cash Flow Growth Rate of 5.54% in TTM. The Operating Cash Flow to Net Income Ratio stands at 1.03, showcasing efficient cash generation from operations. The Free Cash Flow to Net Income Ratio is 0.71, indicating strong cash flow relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.50B	1.45B	1.30B	1.23B	1.11B	936.90M
	Gross Profit
607.20M	581.60M	497.00M	449.10M	405.60M	333.10M
	EBIT
361.10M	374.30M	323.70M	212.00M	165.00M	169.80M
	EBITDA
481.60M	495.60M	434.30M	309.00M	283.10M	-13.00M
	Net Income Common Stockholders
274.10M	264.90M	223.80M	202.90M	183.20M	-84.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.30M	79.30M	70.80M	106.00M	98.10M	136.90M
	Total Assets
1.84B	1.84B	1.67B	1.69B	1.71B	1.72B
	Total Debt
599.90M	599.90M	640.40M	687.00M	671.60M	755.70M
	Net Debt
520.60M	520.60M	569.60M	581.00M	573.50M	618.80M
	Total Liabilities
1.09B	1.09B	1.08B	1.15B	1.19B	1.27B
	Stockholders Equity
757.10M	757.10M	591.80M	535.00M	519.70M	450.90M
Cash Flow		Free Cash Flow
194.20M	184.00M	149.70M	107.60M	107.40M	163.40M
	Operating Cash Flow
281.40M	266.80M	233.50M	182.40M	187.20M	218.80M
	Investing Cash Flow
-79.20M	-79.30M	-10.40M	28.20M	-13.90M	-141.10M
	Financing Cash Flow
-188.10M	-177.60M	-258.60M	-201.90M	-212.10M	13.50M

Armstrong World Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Positive. The current price of 157.9 is above the 20-day moving average (MA) of 153.55, above the 50-day MA of 143.82, and above the 200-day MA of 141.95, indicating a bullish trend. The MACD of 4.27 indicates Positive momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWI.

Armstrong World Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSD	77 Outperform	$6.59B	20.50	18.10%	0.72%	1.38%	-3.80%
AZEK	77 Outperform	$7.05B	47.49	10.62%	―	5.93%	3.50%
AWI	77 Outperform	$6.86B	25.29	38.60%	0.76%	14.55%	17.54%
LPX	74 Outperform	$6.45B	16.28	24.41%	1.14%	8.09%	55.08%
TREX	66 Neutral	$6.25B	31.91	23.07%	―	-9.10%	-21.50%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
FBIN	63 Neutral	$6.04B	14.72	18.62%	1.93%	-3.48%	4.55%

Armstrong World Corporate Events

Armstrong World Releases Updated Investor Presentation

On May 8, 2025, Armstrong World Industries released an updated Investor Presentation on its website ahead of upcoming investor meetings. The presentation highlights the company’s strong financial performance in 2024, with net sales of $1,446 million and an adjusted EBITDA of $486 million. Armstrong World emphasizes its focus on sustainability and innovation, aiming to lead in the design and building of spaces that promote thriving communities. The company continues to leverage its strong brand, extensive product portfolio, and strategic growth initiatives to maintain its industry-leading position.

Armstrong World Reports Record Q1 2025 Financial Results

On April 29, 2025, Armstrong World Industries reported record-setting first-quarter financial results for 2025, with net sales increasing by 17.3% compared to the previous year, driven by acquisitions and strong Mineral Fiber Average Unit Value growth. The company achieved a 14% increase in operating income and a 16% rise in diluted net earnings per share, reaffirming its 2025 guidance across key metrics. Despite challenges in demand, Armstrong World Industries demonstrated resilience with significant contributions from its 2024 acquisitions and organic growth in its Architectural Specialties segment.

Armstrong World Appoints Mark Hershey as COO

On March 31, 2025, Armstrong World Industries announced the appointment of Mark A. Hershey as Senior Vice President & Chief Operating Officer, effective April 1, 2025. Hershey, who has been with the company since 2011, previously served as Senior Vice President, Americas, and has held various leadership roles, indicating a strategic move to strengthen the company’s operational leadership.

Armstrong World Highlights 2024 Success in Investor Update

On March 10, 2025, Armstrong World Industries released an updated Investor Presentation on its website ahead of upcoming investor meetings. The presentation highlights the company’s strong financial performance in 2024, with $1,446 million in net sales and $486 million in adjusted EBITDA. The company emphasizes its commitment to sustainability, innovation, and operational excellence, aiming to lead in the design and building of spaces that support thriving communities. This strategic focus positions Armstrong World Industries advantageously within the building products industry, enhancing its appeal to investors and stakeholders.