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 18.03%, 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 18.03% 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 hold?
- 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.
15.66%
2.51
25.52%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.86%
EBIT Growth (5y)
7.95%
EBIT to Interest (avg)
6.01
Debt to EBITDA (avg)
1.85
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
1.08
Tax Ratio
23.35%
Dividend Payout Ratio
19.07%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
18.69%
ROE (avg)
36.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
11.44
EV to EBIT
33.27
EV to EBITDA
24.14
EV to Capital Employed
7.66
EV to Sales
6.34
PEG Ratio
1.87
Dividend Yield
44.31%
ROCE (Latest)
23.03%
ROE (Latest)
34.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
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
INTEREST COVERAGE RATIO(Q)
Highest at 1,417.44
RAW MATERIAL COST(Y)
Fallen by -1.28% (YoY
NET SALES(Q)
Highest at USD 424.6 MM
OPERATING PROFIT(Q)
Highest at USD 121.9 MM
PRE-TAX PROFIT(Q)
Highest at USD 115.4 MM
NET PROFIT(Q)
Highest at USD 87.88 MM
EPS(Q)
Highest at USD 2.01
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 15.33%
Here's what is working for Armstrong World Industries, Inc.
Operating Cash Flow
Highest at USD 305.7 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 1,417.44
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 57.36 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 10.45 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 424.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 121.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 115.4 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 87.88 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.01
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -1.28% (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
Depreciation
Highest at USD 30.5 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Armstrong World Industries, Inc.
Dividend Payout Ratio
Lowest at 15.33%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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