Armstrong World (AWI) AI Stock Analysis

• Market Cap: $7.95B
• Dividend Yield: 0.69%
• Average Volume (3M): 335.77K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.90
• 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: 261,058
• 30 Day Avg. Volume: 335,771
• 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: 1.13
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 13.81
• Enterprise Value/Ebitda: 16.44
• 1Y Price Target: $207.25
• Price Target Upside: 12.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 7.48
• Revenue Forecast (FY): $1.63B

• Rating: 77 Outperform
• Price Target: $209.00 ▲(13.33% Upside)

Armstrong World's strong financial performance and positive earnings call are the most significant factors driving the stock score. However, the high P/E ratio and bearish technical indicators slightly offset these strengths. Recent corporate events further bolster the company's growth prospects.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, positioning the company well for continued expansion.

Strategic Acquisitions

Strategic acquisitions enhance product offerings and market reach, supporting long-term growth and competitive positioning in the industry.

Cash Flow Generation

Robust cash flow generation provides financial flexibility for investments, debt reduction, and shareholder returns, bolstering financial stability.

Negative Factors

Cost Headwinds

Persistent cost headwinds can pressure margins, potentially affecting profitability and limiting the ability to invest in growth initiatives.

Inflationary Pressures

Inflationary pressures can increase production costs, challenging margin sustainability and necessitating price adjustments or cost management strategies.

SG&A Expense Increase

Rising SG&A expenses can erode profitability if not matched by revenue growth, impacting the company's operational efficiency and bottom line.

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 primarily through the sale of its ceiling and wall products to contractors, architects, and builders in various sectors, including commercial, residential, and institutional markets. The company's revenue model is based on the direct sale of products through a network of distributors and dealers, as well as through direct sales to large contractors and developers. Key revenue streams include the sale of acoustic ceiling tiles, suspension systems, and specialty wall products. Additionally, AWI benefits from strategic partnerships with construction firms and architectural firms that specify its products for projects, enhancing its market reach. The company also focuses on innovation and product development, which helps drive sales and capture market share in a competitive landscape.

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: 184.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 184.41 is below the 20-day moving average (MA) of 185.19, below the 50-day MA of 191.54, and above the 200-day MA of 170.18, indicating a neutral trend. The MACD of -1.66 indicates Negative momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 9.49 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
AWI	77 Outperform	$7.95B	26.38	38.03%	0.69%	15.10%	23.35%
SSD	74 Outperform	$6.92B	20.30	17.82%	0.69%	4.26%	8.52%
WMS	74 Outperform	$11.54B	25.32	27.09%	0.48%	2.48%	-6.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	62 Neutral	$7.63B	77.70	12.08%	0.48%	8.77%	-47.50%
MAS	53 Neutral	$13.13B	16.19	―	1.95%	-3.62%	3.41%
OC	52 Neutral	$9.17B	―	-3.27%	2.43%	3.47%	-148.53%

Armstrong World Corporate Events

Armstrong World to Host Investor Meetings in Chicago

On November 10, 2025, Armstrong World Industries announced that its senior management, including President & CEO Vic Grizzle and SVP & CFO Chris Calzaretta, will host investor meetings at the Baird Global Industrial Conference in Chicago on November 12 and 13, 2025. In conjunction with the conference, the company released an updated Investor Presentation available on its website, highlighting its commitment to engaging with investors and showcasing its strategic initiatives and financial performance.

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.

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.

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.

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.