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Armstrong World Industries Inc
AWI : NYSE : Industrial Goods
$36.29 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 655,300
02/11/16 - 4:02 PM ET

Financial Analysis


ARMSTRONG WORLD INDUSTRIES's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ARMSTRONG WORLD INDUSTRIES has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)658.5678.9
EBITDA ($mil)97.0102.4
EBIT ($mil)67.567.0
Net Income ($mil)31.831.6


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)258.9148.4
Total Assets ($mil)2694.43006.1
Total Debt ($mil)1013.81050.1
Equity ($mil)783.2776.9


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin31.529.96
EBITDA Margin14.7315.08
Operating Margin10.259.87
Sales Turnover0.90.86
Return on Assets3.872.6
Return on Equity9.5213.15
Debt Q3 FY15 Q3 FY14
Current Ratio2.112.12
Debt/Capital0.560.57
Interest Expense11.310.9
Interest Coverage5.976.15


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)55.3654.89
Div / share0.00.0
EPS0.540.84
Book value / share14.1514.15
Institutional Own % n/a n/a
Avg Daily Volume639403.0716006.0

Valuation


HOLD. ARMSTRONG WORLD INDUSTRIES's P/E ratio indicates a premium compared to an average of 27.51 for the Building Products industry and a premium compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 2.70 indicates valuation on par with the S&P 500 average of 2.51 and a significant discount versus the industry average of 53.77. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AWI 28.71 Peers 27.51   AWI 8.75 Peers 15.79

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AWI is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AWI is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AWI 14.14 Peers 20.17   AWI 1.07 Peers 0.99

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AWI is trading at a discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AWI trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AWI 2.70 Peers 53.77   AWI -28.11 Peers 8.98

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AWI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AWI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWI 0.87 Peers 1.52   AWI -6.16 Peers 17.65

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AWI is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AWI significantly trails its peers on the basis of sales growth

 

 

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