Armstrong World Gross Profit vs. Revenue

AWI Stock  USD 157.08  2.27  1.47%   
Based on the measurements of profitability obtained from Armstrong World's financial statements, Armstrong World Industries is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Armstrong World's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2001-09-30
Previous Quarter
149.3 M
Current Value
164.1 M
Quarterly Volatility
87.1 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Armstrong World's Operating Cash Flow Sales Ratio is increasing as compared to previous years. The Armstrong World's current Days Of Sales Outstanding is estimated to increase to 43.60, while Sales General And Administrative To Revenue is projected to decrease to 0.14. As of now, Armstrong World's Income Tax Expense is decreasing as compared to previous years. The Armstrong World's current Net Income Per Share is estimated to increase to 5.26, while Accumulated Other Comprehensive Income is projected to decrease to (109.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.230.3837
Way Down
Slightly volatile
For Armstrong World profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Armstrong World to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Armstrong World Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Armstrong World's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Armstrong World Industries over time as well as its relative position and ranking within its peers.
  

Armstrong World's Revenue Breakdown by Earning Segment

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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
0.122
Dividend Share
1.148
Earnings Share
5.67
Revenue Per Share
31.742
Quarterly Revenue Growth
0.113
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.
Please note, there is a significant difference between Armstrong World's value and its price as these two are different measures arrived at by different 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.

Armstrong World Indu Revenue vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Armstrong World's current stock value. Our valuation model uses many indicators to compare Armstrong World value to that of its competitors to determine the firm's financial worth.
Armstrong World Industries is rated third in gross profit category among its peers. It is rated below average in revenue category among its peers totaling about  2.88  of Revenue per Gross Profit. As of now, Armstrong World's Gross Profit is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Armstrong World's earnings, one of the primary drivers of an investment's value.

Armstrong World's Earnings Breakdown by Geography

Armstrong Revenue vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Armstrong World

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
449.1 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Armstrong World

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
1.3 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Armstrong Revenue vs Competition

Armstrong World Industries is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is presently estimated at about 23.66 Billion. Armstrong World holds roughly 1.3 Billion in revenue claiming about 5% of equities under Industrials industry.

Armstrong World Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Armstrong World, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Armstrong World will eventually generate negative long term returns. The profitability progress is the general direction of Armstrong World's change in net profit over the period of time. It can combine multiple indicators of Armstrong World, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-104.7 M-109.9 M
Operating Income323.7 M339.9 M
Income Before Tax298.3 M313.2 M
Total Other Income Expense Net-25.4 M-26.7 M
Net Income223.8 M235 M
Income Tax Expense74.5 M78.2 M
Net Income Applicable To Common Shares182.6 M144.7 M
Net Income From Continuing Ops223.8 M182.8 M
Non Operating Income Net Other6.9 M6.6 M
Interest Income3.5 M3.3 M
Net Interest Income-31.8 M-33.4 M
Change To Netincome-47.1 M-44.7 M
Net Income Per Share 5.01  5.26 
Income Quality 1.04  2.07 
Net Income Per E B T 0.75  0.71 

Armstrong Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Armstrong World. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Armstrong World position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Armstrong World's important profitability drivers and their relationship over time.

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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:
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You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Armstrong World's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Armstrong World Indu at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Armstrong World's income statement, its balance sheet, and the statement of cash flows.
Potential Armstrong World investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Armstrong World investors may work on each financial statement separately, they are all related. The changes in Armstrong World's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Armstrong World's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.