Armstrong World (AWI) AI Stock Analysis

• Market Cap: $7.13B
• Dividend Yield: 0.75%
• Average Volume (3M): 276.71K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.04
• Revenue Growth: 14.55%
• EPS Growth: 17.54%
• Country: US
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction
• EPS (TTM): 1.66
• Shares Outstanding: 43,426,815
• 10 Day Avg. Volume: 221,796
• 30 Day Avg. Volume: 276,706
• PEG Ratio: 7.22
• Price to Book (P/B): 9.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 12.58
• Enterprise Value/Ebitda: 4.55
• 1Y Price Target: $171.25
• Price Target Upside: 4.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $189.00 ▲(14.88%Upside)

Armstrong World Industries demonstrates strong financial performance and earnings growth, supported by strategic innovation and effective cost management. However, high valuation metrics and overbought technical indicators pose potential risks. Despite these concerns, the company's robust earnings call and positive corporate events highlight its resilience and growth potential.

Positive Factors

Market Position

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.

Revenue Performance

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

Negative Factors

Market Conditions

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

Market Stability

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

Volume Impact

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., 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 systems, which are used in a variety of commercial and residential applications. The company earns money by manufacturing and distributing these products to building materials distributors and retailers, as well as directly to contractors and builders. AWI's revenue streams include sales of mineral fiber and architectural specialties products. The company also benefits from partnerships and strategic acquisitions that expand its product offerings and market reach. Additionally, AWI invests in innovation and sustainability to maintain its competitive edge and meet the evolving demands of the construction and design industries.

Armstrong World Financial Statement Overview

Summary

Armstrong World exhibits strong financial performance with consistent revenue growth, robust profitability margins, and efficient cash flow management. The company maintains a well-managed balance sheet with low debt levels and high returns on equity.

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	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
EBITDA	495.60M	434.30M	309.00M	283.10M	-13.00M
Net Income	264.90M	223.80M	202.90M	183.20M	-84.10M
Balance Sheet
Total Assets	1.84B	1.67B	1.69B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	79.30M	70.80M	106.00M	98.10M	136.90M
Total Debt	599.90M	640.40M	687.00M	671.60M	755.70M
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: 164.52
• 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 164.52 is above the 20-day moving average (MA) of 162.50, above the 50-day MA of 157.91, and above the 200-day MA of 147.94, indicating a bullish trend. The MACD of 3.26 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 32.50 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
AZEK	79 Outperform	$7.82B	52.67	10.62%	―	5.93%	3.50%
AWI	75 Outperform	$7.13B	26.28	38.60%	0.75%	14.55%	17.54%
SSD	71 Outperform	$6.66B	20.71	18.10%	0.73%	1.38%	-3.80%
FBIN	70 Outperform	$6.53B	15.91	18.62%	1.90%	-3.48%	4.55%
TREX	68 Neutral	$6.53B	33.48	23.07%	―	-9.10%	-21.50%
LPX	67 Neutral	$6.06B	15.31	24.41%	1.28%	8.09%	55.08%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%

Armstrong World Corporate Events

Armstrong World Elects Board and Appoints Committees

On June 12, 2025, Armstrong World Industries, Inc. held its Annual Meeting of Shareholders, where all seven nominees were elected to the Board of Directors, KPMG LLP was ratified as the independent registered public accounting firm for 2025, and the executive compensation program was approved on an advisory basis. Following the meeting, the Board appointed members and chairs to its standing committees, impacting the company’s governance structure and potentially influencing its strategic direction.

The most recent analyst rating on (AWI) stock is a Hold with a $122.00 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 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.