Armstrong World (AWI) AI Stock Analysis

• Market Cap: $6.38B
• Dividend Yield: 0.81%
• Average Volume (3M): 376.00K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.01
• Revenue Growth: 14.55%
• EPS Growth: 17.54%
• Country: US
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 78
• Industry: Construction
• EPS (TTM): 6.24
• Shares Outstanding: 43,426,815
• 10 Day Avg. Volume: 389,872
• 30 Day Avg. Volume: 375,996
• PEG Ratio: 1.34
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.49
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $164.25
• Price Target Upside: 11.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Armstrong World Industries demonstrates strong financial performance with excellent revenue growth and profitability. The earnings call provided positive insights with record-setting results, but market uncertainties pose potential risks. Technical analysis suggests caution due to mixed indicators, while valuation remains fair. Collectively, these factors yield a solid overall stock score.

Positive Factors

Growth Outlook

AWI maintains a strong growth outlook for its Architectural Specialties segment with revenue growth over 20%.

Revenue and Operating Margin

The company reported better than expected revenue and operating margin, maintaining its guidance despite a challenging macro environment.

Negative Factors

Growth Stability

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

Market Demand

Mineral Fiber volumes were negatively impacted by one less day and weaker home center demand due to weather conditions.

Armstrong World Business Overview & Revenue Model

Company Description

Armstrong World Industries, Inc. (AWI) is a leading designer and manufacturer of innovative commercial and residential ceiling, wall, and suspension system solutions. With a strong presence in the building and construction industry, AWI primarily serves commercial, residential, and remodeling markets. The company's core products include mineral fiber, metal, wood, and specialty ceiling products, as well as wall solutions that improve aesthetics and acoustics in interior spaces.

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 substantial revenue growth and profitability. The balance sheet shows improved leverage with an impressive debt-to-equity ratio, and cash flow generation is robust, though there's potential for improvement in operational efficiency.

Income Statement

Armstrong World has shown strong revenue growth, with a 11.62% increase from 2023 to 2024. Gross profit and net profit margins stand at 40.23% and 18.32% respectively, indicating solid profitability. However, the EBIT and EBITDA margins are both at 25.89%, which is robust but shows room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.13, indicating a strong reduction in leverage due to decreased total debt. Return on Equity (ROE) is impressive at 34.99%, showcasing effective use of equity to generate profits. The equity ratio stands at 41.08%, reflecting a healthy proportion of equity financing.

Cash Flow

Free cash flow grew by 22.86% from 2023 to 2024, highlighting strong cash generation. The operating cash flow to net income ratio is 1.01, indicating good cash conversion from profits. The free cash flow to net income ratio is 0.69, suggesting a strong ability to generate cash relative to net income, but with some potential for improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.45B	1.30B	1.23B	1.11B	936.90M
	Gross Profit
581.60M	497.00M	449.10M	405.60M	333.10M
	EBIT
374.30M	323.70M	212.00M	165.00M	169.80M
	EBITDA
490.10M	434.30M	309.00M	283.10M	-13.00M
	Net Income Common Stockholders
264.90M	223.80M	202.90M	183.20M	-84.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.30M	70.80M	106.00M	98.10M	136.90M
	Total Assets
1.84B	1.67B	1.69B	1.71B	1.72B
	Total Debt
97.30M	640.40M	687.00M	671.60M	755.70M
	Net Debt
18.00M	569.60M	581.00M	573.50M	618.80M
	Total Liabilities
1.09B	1.08B	1.15B	1.19B	1.27B
	Stockholders Equity
757.10M	591.80M	535.00M	519.70M	450.90M
Cash Flow		Free Cash Flow
184.00M	149.70M	107.60M	107.40M	163.40M
	Operating Cash Flow
266.80M	233.50M	182.40M	187.20M	218.80M
	Investing Cash Flow
-79.30M	-10.40M	28.20M	-13.90M	-141.10M
	Financing Cash Flow
-177.60M	-258.60M	-201.90M	-212.10M	13.50M

Armstrong World Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 146.81 is above the 20-day moving average (MA) of 135.37, above the 50-day MA of 141.48, and above the 200-day MA of 139.52, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 is Negative, 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
AWI	76 Outperform	$6.38B	23.51	38.60%	0.81%	14.55%	17.54%
AZEK	76 Outperform	$7.16B	49.98	10.73%	―	6.59%	30.00%
SSD	73 Outperform	$6.45B	20.01	18.11%	0.72%	1.38%	-3.80%
TREX	73 Outperform	$6.22B	27.82	28.90%	―	5.17%	10.39%
LPX	66 Neutral	$6.03B	14.63	26.08%	1.23%	13.95%	138.97%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
FBIN	59 Neutral	$6.29B	13.82	20.02%	1.80%	-0.37%	18.78%

Armstrong World Corporate Events

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.

Spark’s Take on AWI Stock

According to Spark, TipRanks’ AI Analyst, AWI is a Outperform.

Armstrong World Industries scores well due to strong financial performance, effective debt management, and strategic acquisitions. While the technical indicators suggest a bearish trend, the company’s valuation remains moderate, and recent corporate achievements bolster its market position. However, challenges such as market uncertainties and operational efficiency require attention to sustain growth.

To see Spark’s full report on AWI stock, click here.

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.

Armstrong World Reports Record 2024 Financial Results

On February 25, 2025, Armstrong World Industries reported record-setting financial results for the fourth quarter and full year of 2024, with significant increases in net sales, operating income, and earnings per share. The company highlighted robust growth in its Architectural Specialties segment, driven by strategic acquisitions and increased custom project sales, and expressed confidence in sustaining its growth trajectory in 2025.