Armstrong World Industries Inc (AWI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $4.02 billion. The current price of AWI's stock is $90.9, reflecting a 4.04% gain over the past week and a more significant 13.09% gain over the past three months. This positive trajectory in stock price is further underscored by the company's GF Value, which is currently at $105.85, suggesting that the stock is modestly undervalued. This valuation has remained consistent, as the past GF Value three months ago was $104.27, also indicating a modestly undervalued status.
Introduction to Armstrong World Industries Inc
Armstrong World Industries Inc, operating within the construction industry, is a company focused on the design, innovation, and manufacture of ceiling and wall solutions in the Americas. Their diverse product range includes mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum, and felt. Additionally, through a joint venture with Worthington Industries, Inc., known as Worthington Armstrong Venture (WAVE), the company also produces ceiling suspension system products. 
Assessing Armstrong's Profitability
Armstrong World Industries Inc boasts a strong Profitability Rank of 8/10, indicating robust profitability relative to its industry peers. The company's Operating Margin stands at an impressive 18.70%, surpassing 90.31% of 1,641 companies in the industry. Its ROE (Return on Equity) is an exceptional 41.01%, better than 95.96% of 1,609 companies, while the ROA (Return on Assets) at 13.22% outperforms 94.26% of 1,654 companies. The ROIC (Return on Invested Capital) is also noteworthy at 12.25%, ranking higher than 83.97% of 1,653 companies. Armstrong has maintained profitability for 9 out of the past 10 years, a testament to its financial resilience and operational efficiency.
Growth Prospects of Armstrong World Industries
Armstrong World Industries Inc's Growth Rank is currently at 4/10. The company's 3-Year Revenue Growth Rate per Share is 8.20%, which is better than 65.21% of 1,561 companies in the industry. Over a 5-year period, the Revenue Growth Rate per Share has been 8.70%, outperforming 74.66% of 1,460 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 5.66%, which is more favorable than 51.03% of 194 companies. However, the 3-Year EPS without NRI Growth Rate shows a decline of -2.80%, which is still better than 38.9% of 1,216 companies.
Key Shareholders in Armstrong World Industries
Yacktman Asset Management (Trades, Portfolio) is the leading holder in Armstrong World Industries Inc, with 1,171,409 shares, representing 2.65% of the company. Following closely is Yacktman Fund (Trades, Portfolio), holding 735,000 shares, which equates to 1.64% ownership. Steven Cohen (Trades, Portfolio) also holds a significant position with 176,645 shares, accounting for 0.4% of the company.
Competitive Landscape
When compared to its competitors, Armstrong World Industries Inc stands strong with a market cap of $4.02 billion. Its closest competitors include SPX Technologies Inc (SPXC, Financial) with a similar market cap of $4.02 billion, Louisiana-Pacific Corp (LPX, Financial) with a slightly higher market cap of $4.56 billion, and GMS Inc (GMS, Financial) with a market cap of $2.88 billion. These figures place Armstrong World Industries in a competitive position within the construction industry.
Conclusion
In summary, Armstrong World Industries Inc's stock performance has been robust, with a 13.09% gain over the past three months and a current valuation that suggests the stock is modestly undervalued according to the GF Value. The company's profitability metrics are strong, with high rankings in Operating Margin, ROE, ROA, and ROIC. Growth prospects show a healthy revenue increase, although EPS growth has seen a slight decline. The company's shareholder base includes notable investors, which adds to its credibility. When placed in the context of its competitors, Armstrong World Industries maintains a solid market position, indicating a promising outlook for the company and its investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
