# Armstrong World Industries Inc (AWI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Building Products. Price $173.33, market value $7.3 billion.

## Valuation
- **P/E (trailing): 23.7×** (5-yr avg 22.7×, 3-yr avg 23.1×). Armstrong World Industries Inc trades at 23.7× trailing earnings, close to its own five-year average of 22.7×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.03**. A PEG of 1.03 is in the range usually read as fairly priced for its growth.
- **Price / sales: 4.3×**. Each dollar of revenue is priced at 4.3×.
- **Price / book: 8.3×**. The shares trade at 8.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.7×**. Enterprise value is 13.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.4%** (5-yr avg 3.0%). Free cash flow equals 3.4% of the market value, in line with its five-year average of 3.0%.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 40.3%**. Armstrong World Industries Inc keeps 40.3% of revenue after the direct cost of what it sells.
- **Operating margin: 25.8%**. 25.8% of revenue is left after running the business, an exceptional level.
- **Net margin: 19.0%**. 19.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 34.3%**. 34.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 28.9%**. Return on all capital, debt included, is 28.9%: comfortably above what that capital costs.
- **Return on assets: 16.4%**. Each dollar of assets produces 16.4% of profit.

## Growth
- **Revenue growth (1 yr): 12.1%** (3-yr 9.5%/yr, 5-yr 11.6%/yr). Revenue grew 12.1% over the last year, against 11.6% a year compounded over five years.
- **EPS growth (1 yr): 17.6%** (3-yr 17.4%/yr). Earnings per share rose 17.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 31.8%/yr**. Free cash flow has compounded at 31.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.45**. Debt is 0.45 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.78%** ($1.36 per share, trailing). Armstrong World Industries Inc yields 0.78%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 18%** (24% of free cash flow). 18% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 8**. 8 straight years of increases.
- **Dividend growth (5 yr): 9.3%/yr** (1-yr 10.0%). The dividend has grown 9.3% a year over five years.

## Analyst view
- **Analyst consensus: buy** (11 analysts). 11 analysts cover Armstrong World Industries Inc; the consensus is buy, with an average price target of $210.18 (+21% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -11.6%** (YTD -8.9%, 3-mo 11.7%). The shares are down 11.6% over twelve months including dividends.
- **From 52-week high: -15.9%** (15.3% above the low). Trading 16% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.79** (volatility 27%). Beta of 0.79 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AWI · Page: https://foliofundamentals.com/stocks/awi

Not investment advice.