Armstrong World Industries Inc

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AWI : NYSE : Industrial Goods
$44.8 | %
Today's Range: 44.6 - 45.3
Avg. Daily Volume: 586500.0
03/24/17 - 4:01 PM ET

Financial Analysis


ARMSTRONG WORLD INDUSTRIES's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 65.34% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)297.9297.3
EBITDA ($mil)0.038.3
EBIT ($mil)25.76.9
Net Income ($mil)27.1-13.8


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)142.0244.8
Total Assets ($mil)1758.02691.9
Total Debt ($mil)0.01003.0
Equity ($mil)266.4768.8


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.7739.05
EBITDA Margin0.012.88
Operating Margin8.632.32
Sales Turnover0.70.46
Return on Assets5.953.49
Return on Equity35.243.45
Debt Q4 FY16 Q4 FY15
Current Ratio1.812.02
Debt/Capital0.00.57
Interest Expense6.411.4
Interest Coverage4.020.61


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)55.3255.36
Div / share0.00.0
EPS0.51-0.25
Book value / share4.8213.89
Institutional Own % n/a n/a
Avg Daily Volume500327.0575955.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 24.84 for the Building Products industry and a value on par with the S&P 500 average of 26.60. To use another comparison, its price-to-book ratio of 9.31 indicates a significant premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 19.23. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. The valuation analysis reveals that, ARMSTRONG WORLD INDUSTRIES seems to be trading at a premium 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 27.02 Peers 24.84   AWI 50.33 Peers 116.61

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 16.74 Peers 18.79   AWI 0.16 Peers 1.33

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AWI is trading at a valuation on par with 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 9.31 Peers 19.23   AWI 253.19 Peers -1.75

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.

 

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 2.01 Peers 1.65   AWI 0.25 Peers 11.12

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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