Armstrong World Industries Inc

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AWI : NYSE : Industrial Goods
$43.1 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 561900.0
05/23/17 - 4:03 PM ET

Financial Analysis


ARMSTRONG WORLD INDUSTRIES's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ARMSTRONG WORLD INDUSTRIES has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 64.79% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)315.4287.4
EBITDA ($mil)63.649.4
EBIT ($mil)44.730.6
Net Income ($mil)30.4-9.9


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)81.0149.8
Total Assets ($mil)1757.82625.9
Total Debt ($mil)888.0978.2
Equity ($mil)271.2770.3


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin37.4835.87
EBITDA Margin20.1617.18
Operating Margin14.1710.65
Sales Turnover0.720.47
Return on Assets8.241.43
Return on Equity48.591.79
Debt Q1 FY17 Q1 FY16
Current Ratio1.62.01
Debt/Capital0.770.56
Interest Expense9.221.9
Interest Coverage4.861.4


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)55.3255.48
Div / share0.00.0
EPS0.56-0.13
Book value / share4.913.88
Institutional Own % n/a n/a
Avg Daily Volume554754.0472388.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 26.96 for the Building Products industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 8.77 indicates a significant premium versus the S&P 500 average of 3.00 and a discount versus the industry average of 9.41. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, ARMSTRONG WORLD INDUSTRIES proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AWI 18.30 Peers 26.96   AWI 18.95 Peers 31.64

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AWI is trading at a significant discount to 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 14.29 Peers 18.60   AWI 0.31 Peers 1.38

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.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AWI 8.77 Peers 9.41   AWI 879.16 Peers 147.52

Average. 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 valuation on par with its peers.

 

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

AWI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWI 1.88 Peers 1.66   AWI 2.91 Peers 13.14

Premium. 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 premium 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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