Armstrong World Industries Stock Buy Hold or Sell Recommendation
| AWI Stock | USD 114.69 0.96 0.83% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Armstrong World Industries is 'Strong Hold'. Macroaxis provides Armstrong World buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AWI positions. The advice algorithm takes into account all of Armstrong World's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Armstrong World's buy or sell advice are summarized below:
Real Value 108.16 | Target Price 85.22 | Hype Value 114.69 | Market Value 114.69 | Naive Value 111.99 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Armstrong World Industries given historical horizon and risk tolerance towards Armstrong World. When Macroaxis issues a 'buy' or 'sell' recommendation for Armstrong World Industries, the advice is generated through an automated system that utilizes algorithms and statistical models.
Armstrong |
Execute Armstrong World Buy or Sell Advice
The Armstrong recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Armstrong World Industries. Macroaxis does not own or have any residual interests in Armstrong World Industries or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Armstrong World's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Armstrong World Trading Alerts and Improvement Suggestions
| Armstrong World Indu is unlikely to experience financial distress in the next 2 years | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| On 14th of March 2024 Armstrong World paid $ 0.28 per share dividend to its current shareholders | |
| Latest headline from investing.com: Coinbase CEO Brian Armstrong sells shares worth over 5.4 million |
Armstrong World Returns Distribution Density
The distribution of Armstrong World's historical returns is an attempt to chart the uncertainty of Armstrong World's future price movements. The chart of the probability distribution of Armstrong World daily returns describes the distribution of returns around its average expected value. We use Armstrong World Industries price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Armstrong World returns is essential to provide solid investment advice for Armstrong World.
| Mean Return | 0.25 | Value At Risk | -1.63 | Potential Upside | 1.79 | Standard Deviation | 1.83 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Armstrong World historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Armstrong Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Armstrong World is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Armstrong World Industries backward and forwards among themselves. Armstrong World's institutional investor refers to the entity that pools money to purchase Armstrong World's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Yacktman Asset Management Co | 2023-12-31 | 1.2 M | Timucuan Asset Management Inc/fl | 2023-12-31 | 1.1 M | Burgundy Asset Management Ltd | 2023-12-31 | 1.1 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 1 M | Van Berkom And Associates Inc | 2023-12-31 | 937.2 K | Gates Capital Management Inc | 2023-12-31 | 887.9 K | Citadel Advisors Llc | 2023-09-30 | 764 K | Geode Capital Management, Llc | 2023-12-31 | 661 K | Ameriprise Financial Inc | 2023-12-31 | 598.1 K | Blackrock Inc | 2023-12-31 | 5.6 M | Capital Research & Mgmt Co - Division 3 | 2023-12-31 | 5 M |
Armstrong World Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (290.4M) | 91.6M | (38.8M) | 7.9M | (35.2M) | (33.4M) | |
| Free Cash Flow | 111.4M | 163.4M | 107.4M | 107.6M | 149.7M | 157.2M | |
| Other Non Cash Items | (67.7M) | 300M | (90.4M) | (67.6M) | (94.6M) | (89.9M) | |
| Capital Expenditures | 71.3M | 55.4M | 79.8M | 74.8M | 83.8M | 102.3M | |
| Net Income | 214.5M | (99.1M) | 183.2M | 202.9M | 223.7M | 234.9M | |
| End Period Cash Flow | 45.3M | 136.9M | 98.1M | 106M | 70.8M | 67.3M | |
| Change To Inventory | (7.2M) | (7.7M) | (10.6M) | (19.7M) | 6.1M | 6.4M | |
| Depreciation | 79.4M | 72.1M | 84M | 96.5M | 83.7M | 87.2M | |
| Dividends Paid | 35.6M | 39.2M | 41.4M | 44.2M | (46.9M) | (44.6M) | |
| Change To Netincome | (46.9M) | (150.2M) | (70.5M) | (52.3M) | (47.1M) | (44.7M) | |
| Net Borrowings | (210.4M) | 103.7M | (85M) | 18.2M | 16.4M | 17.2M | |
| Investments | (89.1M) | 81.5M | 78.3M | 28.2M | 9.5M | 9.0M |
Armstrong World Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Armstrong World or Building Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Armstrong World's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Armstrong stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.19 | |
β | Beta against NYSE Composite | 1.02 | |
σ | Overall volatility | 1.87 | |
Ir | Information ratio | 0.11 |
Armstrong World Volatility Alert
Armstrong World Industries has relatively low volatility with skewness of 3.84 and kurtosis of 23.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Armstrong World's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Armstrong World's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Armstrong World Fundamentals Vs Peers
Comparing Armstrong World's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Armstrong World's direct or indirect competition across all of the common fundamentals between Armstrong World and the related equities. This way, we can detect undervalued stocks with similar characteristics as Armstrong World or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Armstrong World's fundamental indicators could also be used in its relative valuation, which is a method of valuing Armstrong World by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Armstrong World to competition |
| Fundamentals | Armstrong World | Peer Average |
| Return On Equity | 0.4 | -0.31 |
| Return On Asset | 0.0934 | -0.14 |
| Profit Margin | 0.17 % | (1.27) % |
| Operating Margin | 0.16 % | (5.51) % |
| Current Valuation | 5.64 B | 16.62 B |
| Shares Outstanding | 43.81 M | 571.82 M |
| Shares Owned By Insiders | 1.35 % | 10.09 % |
| Shares Owned By Institutions | 98.65 % | 39.21 % |
| Number Of Shares Shorted | 684.49 K | 4.71 M |
| Price To Earning | 22.26 X | 28.72 X |
| Price To Book | 8.68 X | 9.51 X |
| Price To Sales | 3.96 X | 11.42 X |
| Revenue | 1.3 B | 9.43 B |
| Gross Profit | 449.1 M | 27.38 B |
| EBITDA | 323.7 M | 3.9 B |
| Net Income | 223.7 M | 570.98 M |
| Cash And Equivalents | 106 M | 2.7 B |
| Cash Per Share | 1.90 X | 5.01 X |
| Total Debt | 640.4 M | 5.32 B |
| Debt To Equity | 1.38 % | 48.70 % |
| Current Ratio | 1.66 X | 2.16 X |
| Book Value Per Share | 13.48 X | 1.93 K |
| Cash Flow From Operations | 233.5 M | 971.22 M |
| Short Ratio | 1.76 X | 4.00 X |
| Earnings Per Share | 4.98 X | 3.12 X |
| Price To Earnings To Growth | 1.66 X | 4.89 X |
| Target Price | 118.56 | |
| Number Of Employees | 3.1 K | 18.84 K |
| Beta | 1.11 | -0.15 |
| Market Capitalization | 5.07 B | 19.03 B |
| Total Asset | 1.67 B | 29.47 B |
| Retained Earnings | 1.35 B | 9.33 B |
| Working Capital | 118.5 M | 1.48 B |
Note: Exercise or conversion by Austin So of 1268 shares of Armstrong World subject to Rule 16b-3 [view details]
Armstrong World Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Armstrong . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Armstrong World Buy or Sell Advice
When is the right time to buy or sell Armstrong World Industries? Buying financial instruments such as Armstrong Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 671.6M | 687M | 640.4M | 591.2M | Total Assets | 1.7B | 1.7B | 1.7B | 2.2B |
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Check out Armstrong World Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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When running Armstrong World's price analysis, check to measure Armstrong World's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Armstrong World is operating at the current time. Most of Armstrong World's value examination focuses on studying past and present price action to predict the probability of Armstrong World's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Armstrong World's price. Additionally, you may evaluate how the addition of Armstrong World to your portfolios can decrease your overall portfolio volatility.
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Is Armstrong World's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Armstrong World. If investors know Armstrong will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Armstrong World listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Dividend Share 1.068 | Earnings Share 4.98 | Revenue Per Share 28.975 | Quarterly Revenue Growth 0.026 |
The market value of Armstrong World Indu is measured differently than its book value, which is the value of Armstrong that is recorded on the company's balance sheet. Investors also form their own opinion of Armstrong World's value that differs from its market value or its book value, called intrinsic value, which is Armstrong World's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Armstrong World's market value can be influenced by many factors that don't directly affect Armstrong World's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Armstrong World's value and its price as these two are different measures arrived at by different means. Investors typically determine if Armstrong World is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Armstrong World's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.