Armstrong World Industries, Inc.

Rank #201Capital Return

AWI · NYSE · Industrials

Armstrong World Industries, Inc. (AWI) — Rank #201 by gross profitability (GP/assets 0.33) · ROE 34.9% · Piotroski F-Score 9 / 9.

As-of 2026-09-15 · CIK 0000007431 · all metrics point-in-time as of the filing date.

About

Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas.

It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass, metal, wood, felt, architectural resin and glass, wood fiber, and glass-reinforced-gypsum; and ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems. It also designs, produces, and sources specialty ceilings, walls, and other interior and exterior architectural applications primarily for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc.

was founded in 1860 and is headquartered in Lancaster, Pennsylvania.

Industry: Building Products & Equipment
Sector: Industrials
State: PA
Filer Category: Large accelerated filer
Fiscal Year End: December 31
Website: armstrong.com

Price History

AWI+69.0% · +11.1% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$6.68B

P/E (annual)

22.3

P/S (annual)

4.1

P/B

7.6

P/OCF (annual)

18.8

Shareholder Yield

1.7%

Employees

4,000

Industry

Building Products & Equipment

Exchange

NYSE

Signal Flags

4 green

Revenue growth acceleratingGrowth rate increasing year over year

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass

GP / assets

0.33

Return on equity

34.9%

Gross margin trend

PASS

Safety

1/1 pass

Balance-sheet safety

PASS

Debt / equity

1.27

Current ratio

1.52×

Net cash

-$413.40M

Cash Flow

2/3 pass

Positive FCF

PASS

Cash-backed earnings

WARN

Accruals healthy

PASS

SBC / revenue

1.4%

Growth

2/2 pass

Revenue growth

12.1%

Piotroski F-Score

9 / 9

Share dilution

-0.9%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

12.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.9% — per-share value needs a total required return of 11.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 11.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

7.7%

r = 10% (base)

12.3%

r = 12%

16.2%

Net debt / market cap: 6.0%

Base FCF: $246.1M3Y mean FCF: $193.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

24.6xFair

17.8xmed 24.4x39.4x

P / S

Price / revenue per share

4.7xExpensive

2.9xmed 4.4x5.0x

P / B

Price / book value per share

8.4xCheap

6.8xmed 9.0x15.4x

P / GP

Price / gross profit per share

11.5xFair

8.1xmed 11.6x13.4x

P / FCF

Price / free cash flow per share

30.9xCheap

24.8xmed 35.1x49.3x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin40.6% now vs 34.2%–40.6% 10yr range

1.6σ above average

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

1st of 6 SIC 30 peers

Return on equity

34.9%

Gross margin

40.6%

2nd of 6 SIC 30 peers

Revenue growth (YoY)

12.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2022	2023	2024	2025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.5%

Revenue CAGR (5Y)

11.6%

Earnings CAGR (3Y)

15.0%

FCF CAGR (3Y)

31.8%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.27

4th of 6 SIC 30 peers (best = lowest)

Current ratio

1.52×

6th of 6 SIC 30 peers

Quick ratio

0.95×

Net cash

-$413.40M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$246.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.20

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Dividend safety

Composite score

4.5 / 5

Strong

Payout ratio

17.9%5/5 Strong

FCF coverage

4.46×5/5 Strong

Dividend growth streak

7 yr4/5 Strong

Balance-sheet health

D/E 1.27 · IC 13.06×4/5 Strong

Piotroski F-Score

F-Score

9 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

2020

2021-2025

20202025

Decline

Capital Return

View full financial statements →