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 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.
-0.86%
2.49
25.56%
S&P 500
22.24%
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 Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 346.6 MM
DIVIDEND PER SHARE(HY)
Highest at USD 10.38
INTEREST COVERAGE RATIO(Q)
Highest at 1,437.68
-4What is not working for the Company
ROCE(HY)
Lowest at 36.34%
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.38 times
OPERATING PROFIT MARGIN(Q)
Lowest at 24.2 %
Here's what is working for Armstrong World Industries, Inc.
Operating Cash Flow
Highest at USD 346.6 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 1,437.68
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 10.38 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Here's what is not working for Armstrong World Industries, Inc.
Operating Profit Margin
Lowest at 24.2 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 10.38 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at USD 0.32 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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