Armstrong World Industries Inc logo

Armstrong World Industries Inc(AWI)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$164.75
09/28/2026
(24-hour delay)

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Upturn Advisory & Investor View for AWI

09/28/2026: AWI (1-star) is currently NOT-A-BUY. Pass it for now.

Armstrong World Industries is a leading manufacturer of ceiling and wall solutions for commercial and institutional environments. The company has evolved into a focused, pure-play business known for high-margin architectural specialty products and reliable mineral fiber offerings. Its main growth opportunity lies in leveraging its design-led specialty segment to capture share in modern, acoustic-optimized building trends. Key risks include exposure to the cyclical commercial construction market and potential raw material cost volatility. The stock is a fit for dividend-focused or industrial-oriented investors, with success largely dependent on the firm's ability to maintain its market-leading position through innovation and strategic acquisitions.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is steady and reliable but reflects the cyclical nature of the construction industry.
Momentum investorStrong fit while signal remains positiveWhen industrial and construction sectors trend, AWI often participates in upward momentum.
Value investorMixed fitValuation is often tied closely to broader construction market cycles and housing data.
Dividend investorStrong fitThe company provides stable dividend income backed by strong free cash flow.
Low-risk investorMedium fitWhile established, the company's reliance on commercial construction introduces cyclical risk.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock reflects broader macroeconomic trends and industrial cycles.
Valuation riskMediumMarket pricing can fluctuate based on interest rate sensitivities in the construction sector.
Competition risk (Construction materials)MediumEstablished players like USG and international competitors maintain consistent pressure.
Business qualityStrongThe company holds a dominant market share and high brand equity in its niche.
Dividend incomeLowThe yield is consistent but not high-growth.
Execution riskMediumSuccessful integration of acquisitions is vital for the architectural specialties growth thesis.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 49.22%
Avg. Invested days 53
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
AWI receives a 4-star rating, supported by solid unit economics, solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
AWI has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+16.5%) and strong cash generation (FCF margin 15.2%) are partially offset by modest insider ownership of 1.55%.

Financial Health Rating

★★★★★
AWI's financial health is supported by solid cash strength, including free-cash-flow generation (15.2% of revenue). Liquidity is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is AWI's strongest growth driver at +33.8% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+12.1%, solid) and earnings growth (+16.5%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 104.6% and approximately 98.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.55% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 12.32%
Vanguard Portfolio Management, LLC 5.28%
Vanguard Capital Management, LLC 4.54%
London Company of Virginia 4.08%
State Street Corp 3.35%

Unit Economics (Per $1K Revenue)

★★★★★
AWI generates approximately $406 of gross profit, $266 of operating income, and $152 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.88%

Quantitative Style Profile

★★★★★
AWI has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.88B USD
Price to earnings Ratio 22.3
1Y Target Price 210.18
Price to earnings Ratio 22.3
1Y Target Price 210.18
Volume (30-day avg) 350.0K shares
Beta 1.16
52 Weeks Range 150.00 - 204.83
Updated Date 09/27/2026
52 Weeks Range 150.00 - 204.83
Updated Date 09/27/2026
Dividends yield (FY) 0.84%
Basic EPS (TTM) 7.3

How Company Makes Money

Business areaWhat it includesRetail investor read
Mineral Fiber CeilingsStandard ceiling tiles and grids.This is the steady, cash-generative core of the business.
Architectural SpecialtiesCustom metal, wood, and felt solutions.This is the high-margin, innovation-focused growth engine.
GeographyPrimary operations in North America.Results are highly sensitive to the US commercial real estate market.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 22.3
Forward PE 17.09
Enterprise Value 7.43B
Price to Sales(TTM) 4.06
Enterprise Value 7.43B
Price to Sales(TTM) 4.06
Enterprise Value to Revenue 4.38
Enterprise Value to EBITDA 13.24
Shares Outstanding 42.26M
Shares Floating 41.55M
Shares Outstanding 42.26M
Shares Floating 41.55M
Percent Insiders 1.55
Percent Institutions 104.58

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Armstrong World Industries Inc

Exchange NYSE
Headquarters Lancaster, PA, United States
IPO Launch date 2006-10-18
President, CEO & Director Mr. Mark A. Hershey J.D.
Sector Industrials
Industry Building Products & Equipment
Full time employees 4000
Full time employees 4000

Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass, metal, wood, felt, architectural resin and glass, wood fiber, and glass-reinforced-gypsum; and ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems. It also designs, produces, and sources specialty ceilings, walls, and other interior and exterior architectural applications primarily for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc. was founded in 1860 and is headquartered in Lancaster, Pennsylvania.