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Armstrong World Industries, Inc.

Rank #188Capital ReturnWatchlistCompare with other stocks

AWI · NYSE · Industrials

Armstrong World Industries, Inc. (AWI) — Rank #188 by gross profitability (GP/assets 0.33) · ROE 34.5% · Piotroski F-Score 9 / 9.

As-of 2026-10-30 · 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.

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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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,100

Industry

Building Products & Equipment

Exchange

NYSE

12/12

Flags passed

AWI passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.33
Return on equity
34.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.24
Current ratio
1.45×
Net cash
-$398.20M

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 0.33

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

1st of 5 SIC 30 peers

Return on equity

34.5%

Gross margin

40.6%

2nd of 5 SIC 30 peers

Revenue growth (YoY)

12.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 20% below net income

Free cash flow

$246.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-20.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $398.20M, F-Score 9/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.24

3rd of 5 SIC 30 peers (best = lowest)

Current ratio

1.45×

5th of 5 SIC 30 peers

Quick ratio

0.88×

Net cash

-$398.20M

Cash & equivalents minus total debt.

Piotroski F-Score

9 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

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 1.24 · IC 13.06×4/5 Strong

Capital allocation quality

Composite score

4.0 / 5

Strong
Share count trend(net buybacks)
-0.9%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
7 yr4/5 Strong
Net debt trajectory(deleveraging)
7.9%5/5 Strong

Lifecycle Phase History

20202025
Decline
Capital Return

Price History

AWI+68.4% · +11.0% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports