Armstrong World Industries Inc (AWI, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $4.99 billion, with a current stock price of $112.87. Over the past week, AWI has seen a modest gain of 0.23%, but it's the 27.61% surge over the past three months that truly stands out. According to GuruFocus's GF Value, the stock is currently Fairly Valued at $107.41. This is a slight increase from three months ago when the stock was considered Modestly Undervalued with a GF Value of $105.38. This recent price appreciation reflects a positive shift in investor sentiment and suggests a strong performance by the company.
Introduction to Armstrong World Industries Inc
Armstrong World Industries Inc, operating within the construction industry, is a leader in the design, innovation, and manufacture of ceiling and wall solutions. The company's diverse product portfolio includes mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum, and felt. Additionally, through its joint venture with Worthington Industries, Inc., known as Worthington Armstrong Venture (WAVE), AWI also produces ceiling suspension system products. This broad range of offerings positions AWI as a key player in its sector, catering to a wide array of customer needs.
Assessing Armstrong World Industries' Profitability
Armstrong World Industries boasts a high Profitability Rank of 8 out of 10, indicating robust profitability within its operations. The company's Operating Margin stands at an impressive 18.70%, which is higher than 89.93% of its industry peers. When it comes to Return on Equity (ROE), AWI outperforms 95.86% of competitors with a remarkable 41.01%. The Return on Assets (ROA) is equally strong at 13.22%, better than 93.97% of industry peers. Furthermore, the Return on Invested Capital (ROIC) is 12.25%, surpassing 83.12% of competitors. These figures not only demonstrate AWI's efficiency in generating profits from its investments but also its exceptional ability to outshine the majority of its industry counterparts.
Exploring Armstrong World Industries' Growth Metrics
Armstrong World Industries has a Growth Rank of 6 out of 10, reflecting moderate growth. The company's 3-Year Revenue Growth Rate per Share is 8.20%, better than 64.35% of companies in the industry. Over a 5-year period, the Revenue Growth Rate per Share has been 8.70%, outperforming 74.24% of its industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 5.66%, which is more favorable than 52.66% of the industry. However, the 3-Year EPS without NRI Growth Rate shows a decline of -2.80%, which is a point of concern but still better than 38.15% of the industry. These growth metrics indicate that while there are areas for improvement, AWI is still maintaining a competitive edge in terms of revenue expansion.
Significant Shareholders in Armstrong World Industries
Among the notable shareholders of Armstrong World Industries, Yacktman Asset Management (Trades, Portfolio) leads the pack with 1,161,243 shares, representing a 2.63% stake in the company. Following closely is Yacktman Fund (Trades, Portfolio), holding 735,000 shares, which translates to a 1.66% share. HOTCHKIS & WILEY also has a vested interest with 96,830 shares, accounting for 0.22% of AWI's shares. These significant holders reflect a vote of confidence from institutional investors and can often be seen as a positive signal to individual investors.
Competitive Landscape
Armstrong World Industries operates in a competitive landscape, with close rivals such as SPX Technologies Inc (SPXC, Financial) and Louisiana-Pacific Corp (LPX, Financial), both boasting market caps close to AWI's at $4.99 billion and $4.9 billion, respectively. Another competitor, GMS Inc (GMS, Financial), has a market cap of $3.48 billion. These companies, while similar in market capitalization, each bring unique strengths and strategies to the table, making the industry a dynamic environment for AWI.
Conclusion
In summary, Armstrong World Industries Inc's stock performance has been impressive, with a significant 27.61% gain over the past three months. The company's valuation indicates that it is Fairly Valued, with a GF Value that has slightly increased from three months prior. AWI's profitability metrics are robust, with high rankings in Operating Margin, ROE, ROA, and ROIC. The company's growth is moderate, with solid revenue growth rates, although its EPS growth rate indicates some challenges. Significant shareholders maintain a strong presence in the company, and when compared to its competitors, AWI holds its ground with a comparable market cap. Overall, Armstrong World Industries Inc presents a compelling case for investors, combining solid financial performance with a stable market position.
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.
