NYSE
AWI
Last Price
US $155.53
KEY FIGURES
MKT CAP
$6.6B
EPS
TTM
$7.16
PEG
TTM
1.80x
P/E
TTM
21.73x
P/S
TTM
4.04x
YIELD
0.85%
GROWTH
Revenue Y/Y
11.59%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $155.53
-44.87%
Default assumptions
EBITDA Multiple
Fair Value
Market $155.53
-61.02%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Armstrong World Industries, Inc. cash flow to debt ratio of 66.85% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Armstrong World Industries, Inc.'s free cash flow has increased 33.75% from $184.00M last year to $246.10M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Armstrong World Industries, Inc.'s debt to equity ratio is 0.64, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Armstrong World Industries, Inc.'s debt has decreased relative to shareholder equity from 0.79 last year to 0.64 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Armstrong World Industries, Inc. has a net debt to EBITDA ratio of 0.76x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Armstrong World Industries, Inc.'s interest coverage ratio of 14.07 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Armstrong World Industries, Inc.'s profit margin has increased (1.47%) in the last year from 18.32% to 18.59%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Armstrong World Industries, Inc.'s short-term assets of $391.50M exceed its short-term liabilities of $267.40M
Increasing performance - ROA.
Armstrong World Industries, Inc.'s return on assets of 15.43% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Armstrong World Industries, Inc.'s return on equity of 34.81%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Armstrong World Industries, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Armstrong World Industries, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Armstrong World Industries, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Armstrong World Industries, Inc. has a free cash flow yield of 3.71%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Armstrong World Industries, Inc.'s yearly earnings has increased 16.53% since last year from $264.90M to $308.70M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Armstrong World Industries, Inc.'s yearly revenue has increased 12.11% since last year from $1.45G to $1.62G, signaling increasing performance
Increasing performance - ROIC.
ROIC 19.91% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Armstrong World Industries, Inc.'s 3-year revenue CAGR of 9.54% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Armstrong World Industries, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Armstrong World Industries, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Armstrong World Industries, Inc. is overvalued relative to its fair value price of 85.74 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Armstrong World Industries, Inc. has an earnings yield of 4.60%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Armstrong World Industries, Inc. is overvalued relative to its fair value price of 60.62 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Armstrong World Industries, Inc. has an EV/EBITDA ratio of 12.75x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Armstrong World Industries, Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Armstrong World Industries, Inc. has a price-to-book ratio of 7.46x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Armstrong World Industries, Inc. has a price-to-sales ratio of 4.04x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
34.81%
Return on equity
ROIC: 19.91%
Valuation History
22.1X
Price to Earnings
EV/EBITDA: 11.7X
Cash flow
Profit margin
-
(FY vs FY)
Cash flow Y/Y
8.54%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.