AWI

Armstrong World Industries, Inc.

Fundamental data last updated:June 12, 2026

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company profile

SECTOR

Industrials

industry

Construction

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/28/2026

Business Summary

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.

 


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VALUATION

P/E

22.06

Market Cap ($M USD)

$6.74B

Forward P/E

15.58

PEG

0.37

PRICE TO SALES

4.09

PRICE TO BOOK

7.57

EV / EBITDA

12.50

5-Year Average P/E

Free Cash Flow Yield

3.67%

DCF Value

$156.76

Graham Number

$57.97

Price to FCF

27.24

EV to FCF

29.22

Earnings Yield

4.53%

FCF Yield

3.67%

DIVIDEND

Yield

0.84%

Annual Payout

$1.33

Payout Ratio

18.44%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.16

Next Year EPS Growth Estimate

$10.14

Next Year Revenue Growth Estimate

$198.50B

Return on Equity (ROE)

34.81%

FREE CASH FLOW

Operating Margin

27.50%

Debt-to-Equity

0.59

Piotroski F-Score

7

Altman Z-Score

6.68

Return on Invested Capital (ROIC)

26.29%

Current Ratio

1.54

Quick Ratio

1.04

Net Debt to EBITDA

0.85

Interest Coverage

14.07

Gross Profit margin

40.30%

FCF PER SHARE

$5.78

REVENUE PER SHARE

$38.50

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Gainseekers Quantitative Analysis

Summary

AWI’s valuation presents a mixed picture. Recent pricing indicated it traded slightly above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 15.96 and a robust Altman Z-score of 6.73 highlight financial stability and growth potential. The Earnings Yield of 4.43% might not scream value, but the strong Return on Equity of 34.81% underscores efficient management. The market seems to be pricing in strong future earnings growth, but the high Price/Book ratio of 7.75 raises questions about intrinsic value.

AI Exposure / Tech Reliance

Operating in the construction industry, AWI is well-positioned to integrate AI and modern technologies into its operations. The sector's shift towards smart building solutions and automation could enhance efficiency and reduce costs. AWI's ability to adapt will be crucial in maintaining its competitive edge.

The Bull Case

For the value or GARP investor, AWI offers compelling reasons to buy. The company's ROIC of 26.29% and a Piotroski F-Score of 7 signal strong operational efficiency and financial health. With an operating margin of 27.50%, AWI demonstrates significant pricing power. Despite a modest FCF Yield of 3.58%, the company's ability to generate cash flow supports its growth narrative and potential for shareholder returns.

The Bear Case

Despite its strengths, AWI faces structural risks. The Price/Sales ratio of 4.19 and Price/Book ratio of 7.75 suggest a premium valuation that may not be justified by its fundamentals. The stock's proximity to its 52-week high raises concerns about technical overextension. Additionally, the EV to FCF ratio of 29.88 indicates that the market may be overestimating future cash flows, posing a risk for investors seeking value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$197.50

Institutional Ownership %

1-Year Beta

1.21

Insider Buying % (6 Mo)

Distance to 52-Week High

30.51%

Distance to 52-Week Low

5.60%

EARNINGS SURPRISE %

-7.14%

50-DAY SMA

$166.68

200-DAY SMA

$184.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.