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Armstrong World IndustriesAWI -1.36%71 Return-on-Tangible-Equity is 197.60% as of Jun. 2026, which is 14% above its 10-year median of 173.14. 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 1,714 Construction companies, Armstrong World Industries ranks better than 93% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Armstrong World Industries's annualized net income for the quarter that ended in Jun. 2026 was $387 Mil. Armstrong World Industries's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $196 Mil. Therefore, Armstrong World Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 197.60%.
The historical rank and industry rank for Armstrong World Industries's Return-on-Tangible-Equity or its related term are showing as below:
AWI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 130.63 Med: 173.14 Max: 515.37
Current: 144.85
During the past 13 years, Armstrong World Industries's highest Return-on-Tangible-Equity was 515.37%. The lowest was 130.63%. And the median was 173.14%.
AWI's Return-on-Tangible-Equity is ranked better than 93% of 1714
companies
in the Construction industry
Industry Median: 8.22
vs AWI: 144.85
Armstrong World Industries (NYSE:AWI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Armstrong World Industries Return-on-Tangible-Equity Related Terms
Armstrong World Industries Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
AWI vs FBIN, BLDR, AAON: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 197.60% mean?
Armstrong World Industries (AWI) has a Return-on-Tangible-Equity of 197.60% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Armstrong World Industries and its competitors. This is 14% above median its historical median of 173.14. Over the past decade, Armstrong World Industries' Return-on-Tangible-Equity has ranged from 130.63 to 515.37. According to the industry distribution chart, Armstrong World Industries ranks #120 out of 1714 companies in the Construction industry, placing it in the top 7%.
Is Armstrong World Industries' Return-on-Tangible-Equity too high?
Armstrong World Industries' current Return-on-Tangible-Equity of 197.60% is 14% above median its 10-year median of 173.14. Over the past 10 years, this metric has ranged from a low of 130.63 to a high of 515.37. The Construction industry median Return-on-Tangible-Equity is 8.22. Armstrong World Industries' value of 197.60% is 2303.9% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #120 out of 1714 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' Return-on-Tangible-Equity compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #120 out of 1714 companies for Return-on-Tangible-Equity. This places Armstrong World Industries in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.22. Armstrong World Industries' value of 197.60% is 2303.9% above this benchmark. Historically, Armstrong World Industries' own Return-on-Tangible-Equity has ranged from 130.63 to 515.37 over the past decade. While the company's 10-year median is 173.14 vs. the industry median of 8.22, 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 Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,714 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current Return-on-Tangible-Equity of 197.60% is 2303.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Return-on-Tangible-Equity is 197.60%, which is 14% above median its own 10-year median of 173.14. 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 Return-on-Tangible-Equity is 197.60%, which is 14% above median its 10-year median of 173.14 and 2303.9% above the Construction industry median of 8.22. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Armstrong World Industries (AWI), the current Return-on-Tangible-Equity is 197.60% 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:
Return-on-Tangible-Equity: 197.60% (14% above median its 10-year median of 173.14)
GF Value™: $173.75 vs. price of $183.00 (5.3% above fair value)
Industry Position: 2303.9% above the Construction median (#120 of 1714)
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
Get the complete analysis for AWI
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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