ScoreWhy is Armstrong World Industries, Inc. ?
1
High Management Efficiency with a high ROCE of 18.69%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.01
3
Poor long term growth as Net Sales has grown by an annual rate of 9.86% and Operating profit at 7.95% over the last 5 years
4
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 305.7 MM
- DEBT-EQUITY RATIO (HY) Lowest at 57.36 %
- DIVIDEND PER SHARE(HY) Highest at USD 10.45
5
With ROCE of 23.03%, it has a expensive valuation with a 7.66 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 19.39%, its profits have risen by 16.7% ; the PEG ratio of the company is 1.9
6
Consistent Returns over the last 3 years
- Along with generating 19.39% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Armstrong World Industries, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Armstrong World Industries, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Armstrong World Industries, Inc.
-1.25%
2.49
25.56%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.59%
EBIT Growth (5y)
13.50%
EBIT to Interest (avg)
6.01
Debt to EBITDA (avg)
1.85
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
1.12
Tax Ratio
23.35%
Dividend Payout Ratio
17.84%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
18.69%
ROE (avg)
36.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
10.45
EV to EBIT
30.40
EV to EBITDA
22.08
EV to Capital Employed
8.02
EV to Sales
6.00
PEG Ratio
1.74
Dividend Yield
0.60%
ROCE (Latest)
26.40%
ROE (Latest)
34.38%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 358.8 MM
DIVIDEND PER SHARE(HY)
Highest at USD 9.62
INTEREST COVERAGE RATIO(Q)
Highest at 1,801.37
RAW MATERIAL COST(Y)
Fallen by 0.22% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 8.3 times
NET SALES(Q)
Highest at USD 472 MM
OPERATING PROFIT(Q)
Highest at USD 131.5 MM
PRE-TAX PROFIT(Q)
Highest at USD 127.8 MM
NET PROFIT(Q)
Highest at USD 97.39 MM
EPS(Q)
Highest at USD 2.26
-5What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 14.97%
ROCE(HY)
Lowest at 36.62%
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.62 times
Here's what is working for Armstrong World Industries, Inc.
Operating Cash Flow
Highest at USD 358.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,801.37
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 9.62 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 472 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 131.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 127.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 97.39 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.26
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 8.3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.22% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Armstrong World Industries, Inc.
Dividend Payout Ratio
Lowest at 14.97% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Debtors Turnover Ratio
Lowest at 9.62 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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