Armstrong World Industries

AWI

Construction · Industrials

Price

$155.97

-4.70 (-2.93%)

Market Cap

$6.66B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−9.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 47.9M (2021) → 43.6M (2025)

Armstrong World Industries makes ceiling systems and wall panels used inside buildings. Its main products are ceiling tiles, ceiling grids, and specialty walls sold to commercial customers like offices, schools, hospitals, and retail stores. Armstrong is one of the largest manufacturers of commercial ceilings in the United States.

The company earns money by selling its products to contractors, distributors, and building owners, mostly across North America. Armstrong has a strong competitive position because its brand is well recognized in the industry and switching costs are relatively high once a building project specifies a particular ceiling system. Its healthy margins reflect pricing power and a focus on higher-value products. The key growth driver is demand for commercial building renovation and new construction, but a slowdown in commercial real estate activity remains the main risk to its business.

Winston Score History

Politician Trades

3 trades / 12mo

0 Congressional buys and 3 sells on AWI in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-1.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.7%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$80M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Armstrong World Industries is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

37.9%

Modest — 37.9% gross margin

Operating Margin

23.0%

Excellent — 23.0% operating margin

ROCE

6.9%

Weak — 6.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+9.7%

Steady sales growth (9.7% YoY)

EPS YoY

+12.3%

Earnings growing (12.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

113%

Turns 113% of profit into real cash

FCF Margin

15.0%

Converts sales into free cash efficiently (15.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.54

Conservative — low debt load (0.54)

Interest Cover

14.07x

Comfortably covers interest (14.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

22.1x

Growth-priced — P/E 22.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+3.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.1 → 19.1)

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Dividends

Dividend Yield

0.84%

Small dividend — 0.84% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+10.0%

Dividend growing fast (10.0% YoY)

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