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Armstrong World IndustriesAWI -1.36%71 Pretax Margin % is 26.89% as of Jun. 2026, which is 14% above its 10-year median of 23.52. 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 1,770 Construction companies, Armstrong World Industries ranks better than 93.33% on this metric.
Armstrong World Industries (NYSE:AWI) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Armstrong World Industries Pretax Margin % Related Terms
Armstrong World Industries Pretax 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: Pretax Margin % Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Pretax 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.
Armstrong World Industries (AWI) has a Pretax Margin % of 26.89% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Armstrong World Industries and its competitors. This is 14% above median its historical median of 23.52. According to the industry distribution chart, Armstrong World Industries ranks #118 out of 1770 companies in the Construction industry, placing it in the top 6.7%.
Is Armstrong World Industries' Pretax Margin % too high?
Armstrong World Industries' current Pretax Margin % of 26.89% is 14% above median its 10-year median of 23.52. The Construction industry median Pretax Margin % is 5.49. Armstrong World Industries' value of 26.89% is 389.8% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #118 out of 1770 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' Pretax Margin % compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #118 out of 1770 companies for Pretax Margin %. This places Armstrong World Industries in the top 7% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.49. Armstrong World Industries' value of 26.89% is 389.8% above this benchmark. While the company's 10-year median is 23.52 vs. the industry median of 5.49, 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 Pretax Margin % for a Construction company?
The median Pretax Margin % among Construction companies is 5.49, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current Pretax Margin % of 26.89% is 389.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median Pretax Margin % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Pretax Margin % is 26.89%, which is 14% above median its own 10-year median of 23.52. 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 Pretax Margin % is 26.89%, which is 14% above median its 10-year median of 23.52 and 389.8% above the Construction industry median of 5.49. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Armstrong World Industries (AWI), the current Pretax Margin % is 26.89% 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:
Pretax Margin %: 26.89% (14% above median its 10-year median of 23.52)
GF Value™: $173.75 vs. price of $183.00 (5.3% above fair value)
Industry Position: 389.8% above the Construction median (#118 of 1770)
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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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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