Armstrong World Industries Inc
Find Ratings ReportsARMSTRONG WORLD INDUSTRIES's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. ARMSTRONG WORLD INDUSTRIES has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.61% 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 | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 312.3 | 304.5 |
EBITDA ($mil) | 69.6 | 72.6 |
EBIT ($mil) | 46.2 | 52.4 |
Net Income ($mil) | 46.8 | 48.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 70.8 | 106.0 |
Total Assets ($mil) | 1672.4 | 1687.2 |
Total Debt ($mil) | 640.4 | 687.0 |
Equity ($mil) | 591.8 | 535.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 45.76 | 43.25 |
EBITDA Margin | 22.28 | 23.84 |
Operating Margin | 14.79 | 17.21 |
Sales Turnover | 0.77 | 0.73 |
Return on Assets | 13.38 | 12.02 |
Return on Equity | 37.82 | 37.36 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.61 | 1.95 |
Debt/Capital | 0.52 | 0.56 |
Interest Expense | 8.6 | 8.6 |
Interest Coverage | 5.37 | 6.09 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 43.9 | 45.57 |
Div / share | 0.28 | 0.25 |
EPS | 1.06 | 1.07 |
Book value / share | 13.48 | 11.74 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 488225.0 | 527794.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 27.83 for the Nonmetallic Mineral Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 9.02 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 4.15. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium.
Price/Earnings |
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Price/Cash Flow |
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AWI 24.31 | Peers 27.83 | AWI 22.85 | Peers 15.03 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AWI is trading at a discount to its peers. |
Premium. 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 premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AWI 18.61 | Peers 15.50 | AWI 1.57 | Peers 0.89 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. AWI is trading at a significant premium to its peers. |
Premium. 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 premium to its peers. |
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Price/Book |
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Earnings Growth |
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AWI 9.02 | Peers 4.15 | AWI 16.27 | Peers 59.56 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AWI is trading at a significant premium 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. |
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Price/Sales |
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Sales Growth |
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AWI 4.12 | Peers 2.28 | AWI 5.03 | Peers 6.46 | |||||||||||||||||||||
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 significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AWI trails its peers on the basis of sales growth. |
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