Armstrong World Industries, Inc. (AWI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Armstrong World Industries, Inc.

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Matthews International Corp.

Berry Global Group, Inc.

Why is Armstrong World Industries, Inc. ?

High Management Efficiency with a high ROCE of 18.69%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.01

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

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

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

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 Report

Verdict Report

How 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.

17.21%

2.49

25.56%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.11%

EBIT Growth (5y)

10.32%

EBIT to Interest (avg)

6.01

Debt to EBITDA (avg)

1.85

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

1.10

Tax Ratio

23.35%

Dividend Payout Ratio

19.07%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

18.69%

ROE (avg)

36.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.93

EV to EBIT

32.36

EV to EBITDA

23.49

EV to Capital Employed

8.21

EV to Sales

6.28

PEG Ratio

1.38

Dividend Yield

0.58%

ROCE (Latest)

25.38%

ROE (Latest)

34.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 332.1 MM

DEBT-EQUITY RATIO (HY)

Lowest at 45.68 %

DIVIDEND PER SHARE(HY)

Highest at USD 10.8

INTEREST COVERAGE RATIO(Q)

Highest at 1,433.73

RAW MATERIAL COST(Y)

Fallen by 1.13% (YoY

NET SALES(Q)

Highest at USD 425.2 MM

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 15.56%

ROCE(HY)

Lowest at 38.03%

Here's what is working for Armstrong World Industries, Inc.

Interest Coverage Ratio

Highest at 1,433.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 45.68 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 10.8 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 332.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 425.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by 1.13% (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 15.56% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)