Armstrong World (AWI) AI Stock Analysis

• Market Cap: $8.43B
• Dividend Yield: 0.66%
• Average Volume (3M): 322.60K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.88
• 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: 348,086
• 30 Day Avg. Volume: 322,595
• 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: 1.06
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 13.81
• Enterprise Value/Ebitda: 16.44
• 1Y Price Target: $207.25
• Price Target Upside: 9.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $209.00 ▲(10.35% Upside)

Armstrong World's strong financial performance and positive earnings call are the most significant factors contributing to the score. The technical analysis and valuation present some concerns, with the stock showing bearish momentum and a high P/E ratio. However, the company's strategic initiatives and robust earnings performance support a favorable outlook.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective strategic initiatives, reinforcing the company's competitive position.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Strategic Acquisitions

Strategic acquisitions expand product offerings and market reach, supporting long-term growth and competitive advantage.

Negative Factors

Cost Headwinds

Persistent cost pressures could erode margins, challenging profitability and requiring ongoing efficiency improvements.

Inflationary Pressures

Inflationary pressures may increase input costs, impacting cost structures and necessitating price adjustments to maintain margins.

SG&A Expense Increase

Rising SG&A expenses can strain profitability, requiring careful management to avoid impacting the bottom line over the long term.

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: Neutral
• Last Price: 189.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Neutral. The current price of 189.39 is below the 20-day moving average (MA) of 189.41, above the 50-day MA of 188.30, and above the 200-day MA of 174.43, indicating a neutral trend. The MACD of 1.95 indicates Negative momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 45.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$8.43B	27.98	38.03%	0.66%	15.10%	23.35%
WMS	74 Outperform	$11.63B	25.50	27.09%	0.47%	2.48%	-6.92%
SSD	71 Outperform	$7.06B	20.71	17.82%	0.69%	4.26%	8.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	61 Neutral	$6.67B	67.80	12.08%	0.53%	8.77%	-47.50%
MAS	53 Neutral	$13.71B	16.91	―	1.94%	-3.62%	3.41%
OC	52 Neutral	$9.55B	-19.33	-3.27%	2.43%	3.47%	-148.53%

Armstrong World Corporate Events

Armstrong World Secures $500M Credit Facility Amendment

On December 10, 2025, Armstrong World Industries, Inc. amended its credit agreement to secure a $500 million revolving credit facility and a $410.625 million term loan, both maturing in 2030. This amendment enhances AWI’s financial flexibility with features like an uncommitted accordion for additional capacity, while maintaining stringent covenants and security interests, potentially impacting its operational liquidity and stakeholder confidence.

The most recent analyst rating on (AWI) stock is a Buy with a $209.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

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.

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 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.