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Armstrong World IndustriesAWI -1.36%71 Gross Margin % is 41.31% as of Jun. 2026, which is 13% above its 10-year median of 36.66. GuruFocus rates AWI with a GF Score™ of 71/100 and a GF Value™ of $173.75 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,731 Construction companies, Armstrong World Industries ranks better than 82.78% on this metric.
Armstrong World Industries (NYSE:AWI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Armstrong World Industries had a gross margin of 41.31% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Armstrong World Industries Gross Margin % Related Terms
Armstrong World Industries Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AWI vs FBIN, BLDR, AAON: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Armstrong World Industries Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Armstrong World Industries (AWI) has a Gross Margin % of 41.31% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Armstrong World Industries and its competitors. This is 13% above median its historical median of 36.66. Over the past decade, Armstrong World Industries' Gross Margin % has ranged from 34.19 to 40.64. According to the industry distribution chart, Armstrong World Industries ranks #298 out of 1731 companies in the Construction industry, placing it in the top 17.2%.
Is Armstrong World Industries' Gross Margin % too high?
Armstrong World Industries' current Gross Margin % of 41.31% is 13% above median its 10-year median of 36.66. Over the past 10 years, this metric has ranged from a low of 34.19 to a high of 40.64. The Construction industry median Gross Margin % is 20.84. Armstrong World Industries' value of 41.31% is 98.2% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #298 out of 1731 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Armstrong World Industries has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Armstrong World Industries' Gross Margin % compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #298 out of 1731 companies for Gross Margin %. This places Armstrong World Industries in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.84. Armstrong World Industries' value of 41.31% is 98.2% above this benchmark. Historically, Armstrong World Industries' own Gross Margin % has ranged from 34.19 to 40.64 over the past decade. While the company's 10-year median is 36.66 vs. the industry median of 20.84, Armstrong World Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.84, based on 1,731 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current Gross Margin % of 41.31% is 98.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median Gross Margin % is 20.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Gross Margin % is 41.31%, which is 13% above median its own 10-year median of 36.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong World Industries stock overvalued right now?
Based on GuruFocus' analysis, Armstrong World Industries (AWI) is currently considered Fairly Valued. The stock's GF Value™ is $173.75, compared to a current price of $183.00 — trading 5.3% above its estimated fair value. The current Gross Margin % is 41.31%, which is 13% above median its 10-year median of 36.66 and 98.2% above the Construction industry median of 20.84. Armstrong World Industries' overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Armstrong World Industries (AWI), the current Gross Margin % is 41.31% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Armstrong World Industries (AWI) Overvalued in 2026?
Based on GuruFocus' analysis, Armstrong World Industries stock appears to be overvalued.
The current stock price of $183.00 is trading 5.3% above its estimated GF Value™ of $173.75.
GuruFocus considers Armstrong World Industries to be Fairly Valued.
Key valuation signals for AWI:
Gross Margin %: 41.31% (13% above median its 10-year median of 36.66)
GF Value™: $173.75 vs. price of $183.00 (5.3% above fair value)
Industry Position: 98.2% above the Construction median (#298 of 1731)
No single metric tells the full story. See the AWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armstrong World Industries Inc designs and manufactures exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions, using materials such as mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber, and glass-reinforced-gypsum. Its segments include Mineral Fiber, which produces suspended mineral fiber and fiberglass ceiling systems and includes results from the Worthington Armstrong Venture (WAVE) for ceiling suspension system (grid) products; Architectural Specialties, which designs, produces, and sources specialty ceilings, walls, and other architectural applications for commercial settings, with revenues mainly project driven; and Unallocated Corporate. The company operates in the United States and Canada.
71GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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