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Armstrong World IndustriesAWI -0.81%71 Operating Margin % is 21.46% as of Jun. 2026, which is 18% above its 10-year median of 18.12. 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 1,773 Construction companies, Armstrong World Industries ranks better than 89.9% on this metric.
Armstrong World Industries (NYSE:AWI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Armstrong World Industries Operating Margin % Related Terms
Armstrong World Industries Operating 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.
Armstrong World Industries Operating Margin % Chart
AWI vs FBIN, BLDR, AAON: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Operating Margin % falls into.
Armstrong World Industries Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Armstrong World Industries's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Armstrong World Industries (AWI) has a Operating Margin % of 21.46% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Armstrong World Industries and its competitors. This is 18% above median its historical median of 18.12. Over the past decade, Armstrong World Industries' Operating Margin % has ranged from 14.67 to 21.27. According to the industry distribution chart, Armstrong World Industries ranks #179 out of 1773 companies in the Construction industry, placing it in the top 10.1%.
Is Armstrong World Industries' Operating Margin % too high?
Armstrong World Industries' current Operating Margin % of 21.46% is 18% above median its 10-year median of 18.12. Over the past 10 years, this metric has ranged from a low of 14.67 to a high of 21.27. The Construction industry median Operating Margin % is 5.92. Armstrong World Industries' value of 21.46% is 262.5% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #179 out of 1773 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' Operating Margin % compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #179 out of 1773 companies for Operating Margin %. This places Armstrong World Industries in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.92. Armstrong World Industries' value of 21.46% is 262.5% above this benchmark. Historically, Armstrong World Industries' own Operating Margin % has ranged from 14.67 to 21.27 over the past decade. While the company's 10-year median is 18.12 vs. the industry median of 5.92, 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.92, based on 1,773 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current Operating Margin % of 21.46% is 262.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median Operating Margin % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Operating Margin % is 21.46%, which is 18% above median its own 10-year median of 18.12. 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 $184.02 — trading 5.9% above its estimated fair value. The current Operating Margin % is 21.46%, which is 18% above median its 10-year median of 18.12 and 262.5% above the Construction industry median of 5.92. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Armstrong World Industries (AWI), the current Operating Margin % is 21.46% 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 $184.02 is trading 5.9% above its estimated GF Value™ of $173.75.
GuruFocus considers Armstrong World Industries to be Fairly Valued.
Key valuation signals for AWI:
Operating Margin %: 21.46% (18% above median its 10-year median of 18.12)
GF Value™: $173.75 vs. price of $184.02 (5.9% above fair value)
Industry Position: 262.5% above the Construction median (#179 of 1773)
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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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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