One-glance verdict
Overvalued
$116.34 our estimate vs market $160.23
Wall Street consensus: $210.18 (80.7% higher than our fair-value estimate)
38% above our estimate, beyond the bull case
Fundamentals snapshot
Armstrong World Industries, Inc.
AWI · NYQ · Industrials · Building Products & Equipment
Current price
$160.23
52-week range
$150.28 - $206.08
Market cap
$6.77B
Balance sheet
Watch
9.67x Adequate
Net debt $501.40M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 36.6% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 2.4% above its 5-year average P/E.
What this company does
Armstrong World Industries, Inc.
Armstrong World Industries makes and sells specialty ceilings and walls, primarily for commercial buildings like offices, schools, and hospitals. The company earns most of its money selling these building materials through a supply chain (the network of distributors and contractors that get products to the final customer). This matters because its success is often tied to the health of the commercial construction and renovation markets.
How the company got here
Founded in 1860 as a one-room cork-cutting shop in Pittsburgh, Armstrong first became famous for branding its corks and guaranteeing their quality. The company later expanded into other building materials, most notably linoleum flooring and then ceiling tiles. A key turning point was the 2016 spin-off of its flooring business, which allowed Armstrong World Industries to focus entirely on ceiling and wall solutions. The company also emerged from a bankruptcy filing in the early 2000s related to asbestos liabilities, which reshaped its financial structure.
What it actually does
Armstrong World Industries makes and sells ceiling and wall systems for commercial buildings and, to a lesser extent, homes. You've likely seen their products in schools, offices, hospitals, and stores, where they are used to cover up ductwork and wiring while also helping to control noise. Their products range from standard, functional ceiling tiles to high-end, custom-designed architectural features made of metal, wood, or felt. The company sells these products through a network of distributors and contractors who install them in new construction projects and building renovations.
Mineral Fiber
This is the company's largest and most established business, making up the majority of its sales. It produces the familiar acoustic ceiling tiles you see in most commercial buildings, which are primarily made from recycled and natural materials like starch and clay. These products are sold for both new construction and for replacing old or damaged tiles in existing buildings. Customers, typically building owners and contractors, pay for these systems to get a combination of performance features, like sound absorption and fire resistance, at an affordable price.
Architectural Specialties
This is a smaller but faster-growing part of the company that focuses on high-end, custom ceiling and wall solutions. Instead of standard tiles, this segment creates unique designs using materials like metal, wood, felt, and glass for spaces that require a specific aesthetic look. Architects and designers are the main customers, specifying (choosing) these products early in the design process for feature walls and ceilings in modern offices, restaurants, and other public spaces. This business is important because it offers higher growth potential and allows the company to be involved in more creative and valuable parts of a building's design.
What management is betting on now
The company's main strategy is to grow its Architectural Specialties business through acquisitions and new product development, which allows it to sell more custom, high-design products. They are also focused on innovation in their core Mineral Fiber business, developing products with improved sustainability features, such as energy-saving ceilings and panels with a lower carbon footprint (the total greenhouse gas emissions caused by their creation). Additionally, Armstrong is investing in digital tools to make it easier for architects and customers to design spaces and get quotes, aiming to streamline the entire process from specification to installation.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$77.10M
FY2024 Q4
$57.80M
FY2025 Q1
$21.90M
FY2025 Q2
$61.70M
FY2025 Q3
$100.30M
FY2025 Q4
$62.20M
FY2026 Q1
$14.40M
FY2026 Q2
$69.80M
Revenue
$472.00M
Net income
$96.70M
Diluted EPS
2.26
Operating cash flow
$93.80M
Free cash flow
$69.80M
Fetching…
Sources
Revenue
$409.90M
Net income
$66.80M
Diluted EPS
1.55
Operating cash flow
$32.10M
Free cash flow
$14.40M
Fetching…
Sources
Revenue
$388.30M
Net income
$65.50M
Diluted EPS
1.51
Operating cash flow
$110.00M
Free cash flow
$62.20M
Fetching…
Sources
Revenue
$425.20M
Net income
$86.30M
Diluted EPS
1.98
Operating cash flow
$122.90M
Free cash flow
$100.30M
Fetching…
Sources
Revenue
$424.60M
Net income
$87.80M
Diluted EPS
2.01
Operating cash flow
$81.60M
Free cash flow
$61.70M
Fetching…
Sources
Revenue
$382.70M
Net income
$69.10M
Diluted EPS
1.58
Operating cash flow
$41.00M
Free cash flow
$21.90M
Fetching…
Sources
Revenue
$367.70M
Net income
$62.20M
Diluted EPS
1.41
Operating cash flow
$86.60M
Free cash flow
$57.80M
Fetching…
Sources
Revenue
$386.60M
Net income
$76.90M
Diluted EPS
1.75
Operating cash flow
$96.50M
Free cash flow
$77.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $116.34 vs current price $160.23
Wall Street consensus is the average analyst price target: $210.18 (80.7% higher than our fair-value estimate).
Our most-likely fair value is $116.34 a share — about 27.4% below today's price of $160.23, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $501.4M. Interest coverage 9.7x.
Net debt
$501.40M
Interest coverage
9.67x
Armstrong World Industries, Inc.'s profit covers its interest bill about 9.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
AWI
BASELINE
Armstrong World Industries, Inc.
Total debt $580.00M Interest coverage 9.67x This is the baseline the peer rows are being compared against.
Total debt $5.73B Interest coverage 6.11x -37% vs AWI Carries about 1.6x less debt cushion than AWI.
Total debt $2.36B Interest coverage 28.63x +196% vs AWI Carries about 3.0x more debt cushion than AWI.
Total debt $1.80B Interest coverage 10.70x +11% vs AWI Has roughly the same debt cushion as AWI.
Total debt $5.24B Interest coverage 2.87x -70% vs AWI Carries about 3.4x less debt cushion than AWI.
Total debt $3.49B Interest coverage 12.41x +28% vs AWI Carries about 1.3x more debt cushion than AWI.
What you should know
The case for and against AWI
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.6% last year.
-
Returns 36.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 2.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.98x
Forward P/E
16.72x
P/B
7.67x
P/S
3.99x
EV/EBITDA
16.19x
PEG ratio
2.02x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
21.6%
Net margin
18.6%
ROE
36.6%
ROA
10.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
1.52x
Quick ratio
0.97x
Total debt
$580.00M
Total cash
$78.60M
Growth
How the business has been compounding
Revenue TTM
$1.70B
Revenue 5Y CAGR
10.0%
EPS TTM
7.29
EPS 5Y CAGR
17.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$358.80M
Free CF TTM
$246.10M
FCF margin
14.5%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
18.1%
Last ex-div date
2026-08-05