Armstrong World (AWI) AI Stock Analysis

• Market Cap: $8.35B
• Dividend Yield: 0.64%
• Average Volume (3M): 349.86K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.92
• Revenue Growth: 15.59%
• EPS Growth: 23.46%
• Country: US
• Employees: 3,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 2.09
• Shares Outstanding: 43,258,330
• 10 Day Avg. Volume: 307,986
• 30 Day Avg. Volume: 349,861
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 4.85
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 14.08
• 1Y Price Target: $203.00
• Price Target Upside: 5.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 80 Outperform
• Price Target: $224.00 ▲(16.56% Upside)

Armstrong World Industries receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's strategic focus on growth and innovation supports its market position. However, valuation concerns and market uncertainties temper the outlook.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial stability and expansion.

Innovative Product Development

Innovation in energy-saving products positions Armstrong World as a leader in sustainable building solutions, appealing to environmentally conscious consumers and driving future growth.

Strong Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns, enhancing long-term business resilience.

Negative Factors

Market Uncertainty

Economic uncertainties, including tariffs and inflation, may impact demand and profitability, posing risks to sustained growth and financial performance.

Tariffs Impact

Tariff-related cost increases could pressure margins and competitiveness, necessitating strategic adjustments to maintain profitability and market position.

Input Cost Inflation

Rising input costs may erode margins if not offset by pricing strategies or operational efficiencies, challenging long-term profitability.

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 a diverse customer base, including contractors, architects, and distributors. Key revenue streams include the manufacture and sale of acoustic ceiling systems, which account for a significant portion of their earnings, as well as specialty ceilings and wall solutions. The company leverages strategic partnerships with distributors and contractors to expand its market reach and improve sales. Additionally, AWI invests in research and development to innovate and enhance its product offerings, which helps maintain competitive pricing and attract new customers. The emphasis on sustainable products also appeals to a growing market segment focused on environmental responsibility, contributing to steady revenue growth.

Armstrong World Financial Statement Overview

Summary

Armstrong World demonstrates strong financial health with notable revenue growth and profitability. The company maintains a solid balance sheet with low leverage and efficient cash flow management. There are opportunities to further optimize liabilities to enhance financial stability.

Income Statement

Armstrong World exhibits strong revenue growth and robust profitability. The TTM (Trailing-Twelve-Months) revenue has increased by 8.03% compared to the previous year, showing a positive growth trend. The gross profit margin stands at 40.57%, and the net profit margin is 18.95%, which are strong indicators of profitability. EBIT and EBITDA margins are also healthy, reflecting efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.12, indicating low leverage. Return on equity is strong at 35.32%, showcasing effective use of equity capital. The equity ratio is 45.00%, reflecting a solid capital structure. However, there is room for improvement in reducing liabilities further.

Cash Flow

Armstrong World shows healthy cash flow management, with a free cash flow growth rate of 18.75% over the last year. The operating cash flow to net income ratio is 1.03, indicating good cash conversion. The free cash flow to net income ratio is 0.74, suggesting efficient capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.45B	1.30B	1.23B	1.11B	936.90M
Gross Profit	633.70M	581.60M	497.00M	449.30M	405.90M	333.20M
EBITDA	538.40M	495.60M	434.30M	368.40M	370.60M	-13.00M
Net Income	296.00M	264.90M	223.70M	199.60M	185.00M	-84.20M
Balance Sheet
Total Assets	1.86B	1.84B	1.67B	1.69B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	81.10M	79.30M	70.80M	106.00M	98.10M	136.90M
Total Debt	99.90M	599.90M	640.40M	687.00M	671.60M	755.70M
Total Liabilities	1.02B	1.09B	1.08B	1.15B	1.19B	1.27B
Stockholders Equity	837.80M	757.10M	591.80M	535.00M	519.70M	450.90M
Cash Flow
Free Cash Flow	218.50M	184.00M	149.70M	107.60M	107.40M	163.40M
Operating Cash Flow	305.70M	266.80M	233.50M	182.40M	187.20M	218.80M
Investing Cash Flow	15.30M	-79.30M	-10.40M	28.20M	-13.90M	-141.10M
Financing Cash Flow	-313.40M	-177.60M	-258.60M	-201.90M	-212.10M	13.50M

Armstrong World Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 192.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 192.17 is below the 20-day moving average (MA) of 195.83, above the 50-day MA of 189.57, and above the 200-day MA of 158.99, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 16.39 is Positive, 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	80 Outperform	$8.35B	28.85	39.29%	0.64%	15.59%	23.46%
FBIN	69 Neutral	6.47B	16.94	16.81%	1.88%	-5.79%	-9.90%
LPX	69 Neutral	5.81B	19.67	25.13%	1.32%	-1.44%	-31.12%
SSD	68 Neutral	7.35B	22.48	17.12%	0.65%	2.95%	0.76%
TREX	64 Neutral	5.44B	29.08	18.87%	―	-9.65%	-28.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Armstrong World Corporate Events

Armstrong World Releases Updated Investor Presentation

On September 3, 2025, Armstrong World Industries released an updated Investor Presentation on its website ahead of upcoming investor meetings. The presentation outlines the company’s financial performance, emphasizing its strong market position and strategic focus on sustainability and innovation. Armstrong World Industries highlights its commitment to renewable energy and reducing environmental impacts, while also showcasing its broad product portfolio and strong relationships with architects and designers. The company aims to continue its growth trajectory through strategic acquisitions and a focus on high-value, innovative products.

Armstrong World Reports Record Q2 2025 Sales and Earnings

On July 29, 2025, Armstrong World Industries reported record second-quarter sales and earnings for 2025, with a 16% increase in net sales to $425 million. The company experienced significant growth in both its Mineral Fiber and Architectural Specialties segments, with operating income rising by 30% and net earnings per share increasing by 34%. The results were driven by strong commercial execution, growth initiatives, and contributions from recent acquisitions, despite ongoing macro-economic uncertainties.

Armstrong World Declares Quarterly Cash Dividend

On July 23, 2025, Armstrong World Industries announced a quarterly cash dividend of $0.308 per share, payable on August 21, 2025, to shareholders recorded by August 7, 2025. This decision reflects the company’s ongoing financial strategy, with future dividends contingent on financial health and operational results, impacting stakeholders’ expectations.

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.