Armstrong World Industries Inc

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AWI : NYSE : Industrial Goods
$39.9 up 0.2 | 0.5%
Today's Range: 39.6 - 40.0
Avg. Daily Volume: 575600.0
01/20/17 - 12:13 PM ET

Financial Analysis


ARMSTRONG WORLD INDUSTRIES's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 1.20 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 66.91% 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 FY16 Q3 FY15
Net Sales ($mil)334.9335.9
EBITDA ($mil)73.976.6
EBIT ($mil)54.047.1
Net Income ($mil)70.631.8


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)142.5258.9
Total Assets ($mil)1732.72694.4
Total Debt ($mil)873.71013.8
Equity ($mil)259.1783.2


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin38.741.86
EBITDA Margin22.0622.8
Operating Margin16.1214.02
Sales Turnover0.870.56
Return on Assets3.683.87
Return on Equity20.846.52
Debt Q3 FY16 Q3 FY15
Current Ratio1.862.11
Debt/Capital0.770.56
Interest Expense9.011.3
Interest Coverage6.04.17


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)55.3255.36
Div / share0.00.0
EPS0.990.35
Book value / share4.6814.15
Institutional Own % n/a n/a
Avg Daily Volume577700.0529592.0

Valuation


HOLD. ARMSTRONG WORLD INDUSTRIES's P/E ratio indicates a significant premium compared to an average of 23.93 for the Building Products industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 8.36 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 21.34. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 41.21 Peers 23.93   AWI 37.96 Peers 18.41

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AWI is trading at a significant premium 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AWI 15.66 Peers 19.25   AWI 0.30 Peers 1.53

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 8.36 Peers 21.34   AWI 4.39 Peers 33.68

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 1.43 Peers 1.55   AWI -0.48 Peers 7.91

Average. 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 valuation on par with 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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