Is Armstrong World Stock a Good Investment?
Armstrong World Investment Advice | AWI |
- Examine Armstrong World's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Armstrong World's leadership team and their track record. Good management can help Armstrong World navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Building Products space and any emerging trends that could impact Armstrong World's business and its evolving consumer preferences.
- Compare Armstrong World's performance and market position to its competitors. Analyze how Armstrong World is positioned in terms of product offerings, innovation, and market share.
- Check if Armstrong World pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Armstrong World's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Armstrong World Industries stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Armstrong World Industries is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Armstrong World Stock
Researching Armstrong World's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.66. Armstrong World Indu recorded earning per share (EPS) of 5.95. The entity last dividend was issued on the 6th of March 2025.
To determine if Armstrong World is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Armstrong World's research are outlined below:
| Armstrong World Indu is unlikely to experience financial distress in the next 2 years | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Advantage Alpha Capital Partners LP Cuts Stake in Armstrong World Industries, Inc. |
Armstrong World uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Armstrong World Industries. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Armstrong World's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Armstrong World's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Armstrong World's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-03-30 | 2006-12-31 | 0.02 | 0.06 | 0.04 | 200 | ||
2016-05-09 | 2016-03-31 | 0.42 | 0.47 | 0.05 | 11 | ||
2011-02-28 | 2010-12-31 | 0.16 | 0.11 | -0.05 | 31 | ||
2010-03-01 | 2009-12-31 | 0.27 | 0.22 | -0.05 | 18 | ||
2009-02-26 | 2008-12-31 | 0.15 | 0.2 | 0.05 | 33 | ||
2008-05-02 | 2008-03-31 | 0.3 | 0.35 | 0.05 | 16 | ||
2016-02-22 | 2015-12-31 | 0.33 | 0.27 | -0.06 | 18 | ||
2012-04-30 | 2012-03-31 | 0.54 | 0.47 | -0.07 | 12 |
Know Armstrong World's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Armstrong World is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Armstrong World Industries backward and forwards among themselves. Armstrong World's institutional investor refers to the entity that pools money to purchase Armstrong World's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Neuberger Berman Group Llc | 2024-12-31 | 931.6 K | Timucuan Asset Management Inc/fl | 2024-12-31 | 924.3 K | Geode Capital Management, Llc | 2024-12-31 | 887.4 K | Adage Capital Partners Gp Llc | 2024-12-31 | 666 K | Bank Of America Corp | 2024-12-31 | 635.2 K | Gates Capital Management Inc | 2024-12-31 | 615.4 K | Van Berkom And Associates Inc | 2024-12-31 | 613.1 K | Alyeska Investment Group, L.p. | 2024-12-31 | 532.6 K | Madison Investment Advisors, Llc | 2024-12-31 | 532.4 K | Blackrock Inc | 2024-12-31 | 5.5 M | Vanguard Group Inc | 2024-12-31 | 4.6 M |
Armstrong World's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.35 B.Market Cap |
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Armstrong World's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.23 | |
| Return On Capital Employed | 0.23 | 0.25 | |
| Return On Assets | 0.14 | 0.15 | |
| Return On Equity | 0.35 | 0.37 |
Determining Armstrong World's profitability involves analyzing its financial statements and using various financial metrics to determine if Armstrong World is a good buy. For example, gross profit margin measures Armstrong World's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Armstrong World's profitability and make more informed investment decisions.
Armstrong World's Earnings Breakdown by Geography
Evaluate Armstrong World's management efficiency
Armstrong World Indu has Return on Asset of 0.101 % which means that on every $100 spent on assets, it made $0.101 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3928 %, implying that it generated $0.3928 on every 100 dollars invested. Armstrong World's management efficiency ratios could be used to measure how well Armstrong World manages its routine affairs as well as how well it operates its assets and liabilities. The Armstrong World's current Return On Tangible Assets is estimated to increase to 0.23. The Armstrong World's current Return On Capital Employed is estimated to increase to 0.25. As of now, Armstrong World's Return On Tangible Assets are increasing as compared to previous years. The Armstrong World's current Intangibles To Total Assets is estimated to increase to 0.38, while Other Assets are projected to decrease to under 121.9 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 17.32 | 14.26 | |
| Tangible Book Value Per Share | 2.26 | 2.15 | |
| Enterprise Value Over EBITDA | 12.64 | 13.27 | |
| Price Book Value Ratio | 8.16 | 8.57 | |
| Enterprise Value Multiple | 12.64 | 13.27 | |
| Price Fair Value | 8.16 | 8.57 | |
| Enterprise Value | 5.6 B | 5.9 B |
Effective management at Armstrong World has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Basic technical analysis of Armstrong Stock
As of the 27th of March, Armstrong World shows the Mean Deviation of 1.23, risk adjusted performance of (0.01), and Standard Deviation of 1.65. Armstrong World Indu technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Armstrong World's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Armstrong World insiders, such as employees or executives, is commonly permitted as long as it does not rely on Armstrong World's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Armstrong World insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Wayne Shurts over two months ago Acquisition by Wayne Shurts of 1778 shares of Armstrong World subject to Rule 16b-3 | ||
Mark Hershey over six months ago Acquisition by Mark Hershey of 7561 shares of Armstrong World subject to Rule 16b-3 | ||
Austin So over a year ago Exercise or conversion by Austin So of 1268 shares of Armstrong World subject to Rule 16b-3 | ||
Gregory Spivy over a year ago Acquisition by Gregory Spivy of 2298 shares of Armstrong World subject to Rule 16b-3 |
Armstrong World's Outstanding Corporate Bonds
Armstrong World issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Armstrong World Indu uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Armstrong bonds can be classified according to their maturity, which is the date when Armstrong World Industries has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Armstrong World's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Armstrong World's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | 0.1583 | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (5,391) | |||
| Standard Deviation | 1.65 | |||
| Variance | 2.72 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | 0.1483 | |||
| Maximum Drawdown | 8.9 | |||
| Value At Risk | (2.25) | |||
| Potential Upside | 3.12 | |||
| Skewness | 0.3007 | |||
| Kurtosis | 1.43 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | 0.1583 | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (5,391) | |||
| Standard Deviation | 1.65 | |||
| Variance | 2.72 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | 0.1483 | |||
| Maximum Drawdown | 8.9 | |||
| Value At Risk | (2.25) | |||
| Potential Upside | 3.12 | |||
| Skewness | 0.3007 | |||
| Kurtosis | 1.43 |
Consider Armstrong World's intraday indicators
Armstrong World intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Armstrong World stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 6439.6 | |||
| Daily Balance Of Power | (0.59) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 143.66 | |||
| Day Typical Price | 143.86 | |||
| Price Action Indicator | (0.26) | |||
| Period Momentum Indicator | (1.74) | |||
| Relative Strength Index | 43.79 |
Armstrong World Corporate Filings
8K | 10th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 28th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 3rd of February 2025 Other Reports | ViewVerify | |
| 31st of May 2024 Other Reports | ViewVerify |
Armstrong Stock media impact
Far too much social signal, news, headlines, and media speculation about Armstrong World that are available to investors today. That information is available publicly through Armstrong media outlets and privately through word of mouth or via Armstrong internal channels. However, regardless of the origin, that massive amount of Armstrong data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Armstrong World news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Armstrong World relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Armstrong World's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Armstrong World alpha.
Armstrong World Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Armstrong World can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Armstrong World Indu Historical Investor Sentiment
Investor biases related to Armstrong World's public news can be used to forecast risks associated with an investment in Armstrong. The trend in average sentiment can be used to explain how an investor holding Armstrong can time the market purely based on public headlines and social activities around Armstrong World Industries. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Armstrong World's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Armstrong World and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Armstrong World news discussions. The higher the estimate score, the more favorable the investor's outlook on Armstrong World.
Armstrong World Corporate Directors
| Roy Templin | Independent Director | Profile | |
| James Melville | Independent Director | Profile | |
| Tao Huang | Independent Director | Profile | |
| Larry McWilliams | Independent Director | Profile |
Already Invested in Armstrong World Industries?
The danger of trading Armstrong World Industries is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Armstrong World is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Armstrong World. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Armstrong World Indu is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Armstrong World Indu offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Armstrong World's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Armstrong World Industries Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Armstrong World Industries Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Armstrong World Industries. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Armstrong World. If investors know Armstrong will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Armstrong World listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.338 | Dividend Share 1.176 | Earnings Share 5.95 | Revenue Per Share | Quarterly Revenue Growth 0.177 |
The market value of Armstrong World Indu is measured differently than its book value, which is the value of Armstrong that is recorded on the company's balance sheet. Investors also form their own opinion of Armstrong World's value that differs from its market value or its book value, called intrinsic value, which is Armstrong World's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Armstrong World's market value can be influenced by many factors that don't directly affect Armstrong World's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Armstrong World's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Armstrong World is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Armstrong World's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.