Armstrong World Industries Inc logo

Armstrong World Industries Inc(AWI)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$164.82
10/26/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for AWI

10/26/2026: AWI (1-star) is currently NOT-A-BUY. Pass it for now.

Armstrong World Industries is a leading manufacturer of ceiling and wall systems primarily serving the commercial construction market. The company has successfully transitioned into a specialized firm focused on high-margin architectural solutions, which is its primary growth engine. While it benefits from strong brand recognition and a solid dividend, its performance is subject to cyclical risks within the commercial real estate and office renovation sectors. Key risks include shifts in workplace demand and macroeconomic sensitivity. The company may suit value and dividend-focused investors, though market participants should monitor commercial renovation spending and the integration of new specialty 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 fitThe company offers moderate growth through segment expansion but is tied to the cyclical construction industry.
Momentum investorStrong fit while signal remains positiveAWI often sees periods of strong price momentum correlated with building cycle upswings.
Value investorStrong fitThe company's focus on cash flow and disciplined capital allocation often provides a attractive valuation floor.
Dividend investorStrong fitAWI provides a consistent and stable dividend payout suited for income-focused portfolios.
Low-risk investorMixed fitWhile established, the stock is subject to broader economic and housing market volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can be sensitive to fluctuations in the broader construction and housing sectors.
Valuation riskMediumMarket pricing of construction stocks is heavily dependent on interest rate environments.
Competition risk (Building Materials)MediumIntense competition exists from larger, diversified building material manufacturers.
Business qualityStrongThe company has a long history and a dominant, specialized market niche.
Dividend incomeLowThe dividend is stable, though growth may be moderate rather than aggressive.
Execution riskMediumSuccessful integration of smaller specialty acquisitions is key to long-term growth.

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 10/26/2026

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 104.9% 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 12.20%
Vanguard Portfolio Management, LLC 5.25%
Vanguard Capital Management, LLC 4.55%
London Company of Virginia 3.89%
State Street Corp 3.40%

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, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 7.11B USD
Price to earnings Ratio 23.01
1Y Target Price 207.64
Price to earnings Ratio 23.01
1Y Target Price 207.64
Volume (30-day avg) 372.4K shares
Beta 1.16
52 Weeks Range 150.00 - 204.83
Updated Date 10/25/2026
52 Weeks Range 150.00 - 204.83
Updated Date 10/25/2026
Dividends yield (FY) 0.79%
Basic EPS (TTM) 7.31

How Company Makes Money

Business areaWhat it includesRetail investor read
Mineral FiberCeiling tiles and suspension systems for office, school, and healthcare sectors.This is the 'bread and butter' stable cash-generating core of the business.
Architectural SpecialtiesCustom wood, metal, and felt ceiling/wall systems.This is the higher-growth, higher-margin innovation engine of the company.
GeographyPrimarily North American revenue with some international specialty product exposure.The company's performance is closely tied to the North American commercial construction 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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Earnings Date

Report Date 2026-10-27
When Before Market
Estimate 2.35
Actual -

Profitability

Profit Margin 18.6%
Operating Margin (TTM) 21.57%

Management Effectiveness

Return on Assets (TTM) 10.62%
Return on Equity (TTM) 36.62%

Valuation

Trailing PE 23.01
Forward PE 24.27
Enterprise Value 8.97B
Price to Sales(TTM) 4.19
Enterprise Value 8.97B
Price to Sales(TTM) 4.19
Enterprise Value to Revenue 5.74
Enterprise Value to EBITDA 16.73
Shares Outstanding 42.26M
Shares Floating 41.55M
Shares Outstanding 42.26M
Shares Floating 41.55M
Percent Insiders 1.55
Percent Institutions 104.92

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.

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