Armstrong World Industries Inc

Industrials
Plastic Products
www.armstrongceilings.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.84B
PE 27
Debt $555.60M
Cash $73.70M
EV $7.32B
FCF $159.60M

Earnings

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Sales & Net Margins

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Earnings	$249.50M
EBIT	$358.70M
ROE	35%
ROA	20%
FCF	$159.60M
Equity	$717.00M
Growth Stability	-54%
PE	27.42
PEG	3.57
PB	9.54
P/FCF	42.87
P/S	4.92
Price/Cash	0.01
Debt/Equity	0.77
Debt/FCF	3.48
Net Margins	19%
Gross Margins	40%
Op. Margins	26%
Earnings CAGR	10%
Sales Growth YoY	11%
Sales Growth QoQ	6%
Sales CAGR	-1%
FCF CAGR	12%
Equity CAGR	3%
Earnings Stability	0.35
Earnings Growth YoY	11%
Earnings Growth QoQ	17%
Earnings CAGR 5Y	8%

Sales CAGR 5Y	9%
FCF CAGR 5Y	1%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	23%
Equity CAGR 3Y	11%
Market Cap	$6.84B
Revenue	$1.39B
Dividend Yield	1%
Payout Ratio	20%
Assets	$1.80B
Total Debt	$555.60M
Cash	$73.70M
Shares Outstanding	43.66M
EV	7.32B
Earnings Score	20%
Moat Score	96%
Safety Score	58%
Final Score	58%
Working Capital	139.3M
Current Ratio	1.64
Gross Profit	$557.20M
Shares Growth 3y	-3%
Equity Growth QoQ	7%
Equity Growth YoY	22%

Assets & ROA

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Stockholders Equity & ROE

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Armstrong World Industries manufactures and sells fiber and metal ceiling systems and complementary ceiling products to the residential, commercial, and institutional construction and remodeling industries. The company also operates a joint venture that manufactures ceiling grid suspension systems. Armstrong's reportable segments include mineral fiber and architectural specialties. It generates maximum revenue from the mineral fiber segment. The company has a presence in the United States, Canada, and Latin America.

SEC Filings

Direct access to Armstrong World Industries Inc (AWI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Armstrong World Industries Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Armstrong World Industries Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 35%

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Armstrong World Industries Inc Discounted Cash Flow

Fully customizable DCF calculator online for Armstrong World Industries Inc.

Years

Calculation mode

= $3.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$160M	$178M	$199M	$222M	$247M	$276M	$308M	$344M	$384M	$428M	$478M	$4.8B
DCF		$162M	$164M	$167M	$169M	$171M	$174M	$176M	$179M	$182M	$184M	$1.8B
Value	$3.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	4%	8%	17%	19%	21%	-11%	17%	16%	17%	19%
ROA	-	7%	11%	14%	13%	21%	15%	15%	17%	19%	20%
ROE	-	12%	39%	37%	71%	59%	-22%	35%	38%	38%	35%

Good Net Margins (18.8%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	31.67	-16.54	11.04	6.71	5.58	4.55	6.13	6.09	4.09	3.48
Debt over Equity	1.67	1.36	3.41	2.12	3.37	1.7	1.65	1.27	1.22	1.03	0.77
Growth Stability	-	-	-	100%	100%	100%	-54%	100%	100%	100%	-54%

Neutral Debt/FCF ratio (3.48)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.77)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-54%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-4%	-49%	-28%	9%	6%	-10%	18%	11%	5%	9%
Earnings YoY growth	-	48%	11%	48%	20%	15%	-146%	-285%	11%	10%	8%
Equity YoY growth	-	18%	-65%	57%	-38%	40%	24%	15%	3%	11%	12%
FCF YoY growth	-	-334%	-266%	-247%	63%	-15%	47%	-34%	0%	39%	1%