# Armstrong World Industries (AWI.US)

Canonical: https://gigainvestors.com/s/AWI

Analysis as of: 2026-10-16T07:26:41.964Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $166.59 per share; close as of 2026-10-15.

Estimated value: low $80.98 per share, central $92.00 per share, high $106.67 per share. Buy at or below the central value $92.00 per share. Valuation as of 2026-10-16T07:26:41.964Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.18×

- FY2019: 0.23×

- FY2020: 0.18×

- FY2021: 0.15×

- FY2022: 0.17×

- FY2023: 0.18×

- FY2024: 0.26×

- FY2025: 0.27×

- LTM to Jun 2026: 0.29×

### moat: pass

- ROIC, median of available years: 17.6%

- ROIC, second-lowest year: 13.9%

- Typical minus recent gross margin: -3.6 pp

- Typical gross margin (annual median): 36.6%

- Recent gross margin (lower of latest and 3-year median): 40.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.8%

- ROIC including acquisitions, ten-year median: 19.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.9%

- FY2017: 16.8%

- FY2018: 19.4%

- FY2019: 21.3%

- FY2020: 14.8%

- FY2021: 13.9%

- FY2022: 17.3%

- FY2023: 17.8%

- FY2024: 26.6%

- FY2025: 30.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $1.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -0.7 pp

- Working capital / revenue, final three-year average: 9.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.04×

- FY2023: 1.02×

- FY2024: 1.08×

- FY2025: 1.04×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.8% vs 26.6%

- Per-share earnings: 1.60 to 6.02 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.5%

- Ordinary dilution, 5-year annual growth: -1.9%

- Market cap gain: $5.9B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: -2.5%

- Diluted shares, 5-year annual growth: -1.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.0%

- Per-share value change: $4.42

- Per-share value, starting three-year median: $1.60

- Per-share value, ending three-year median: $6.02

- Buybacks concentrated in cheaper years (correlation): 0.75

- Average buyback yield: 3.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $268M

- Cumulative net income, 10 years: $1.8B

- ROIC, first three-year median: 16.8%

- ROIC, last three-year median: 26.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.60

- FY2017: $4.16

- FY2018: $3.81

- FY2019: $4.85

- FY2020: -$1.76

- FY2021: $3.86

- FY2022: $4.30

- FY2023: $4.99

- FY2024: $6.02

- FY2025: $7.08

### accounting: pass

- Sloan accruals: -2.4%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.15×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.71×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.3%

- FY2017: 2.9%

- FY2018: -0.2%

- FY2019: 3.8%

- FY2020: -17.6%

- FY2021: -0.1%

- FY2022: 1.0%

- FY2023: -0.6%

- FY2024: -0.1%

- FY2025: -2.4%

## Holders

- [John Armitage](https://gigainvestors.com/EC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.4% a year for ten years · sales +4.6%

Story as of 2026-10-16T09:58:21.037Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

- 2025-07-29: Armstrong World (NYSE:AWI) Beats Expectations in Strong Q2, Full-Year Outlook Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/armstrong-world-nyse-awi-beats-101541849.html))

- 2025-08-13: AWI Q2 Deep Dive: Margin Expansion and Segment Growth Drive Upbeat Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/awi-q2-deep-dive-margin-033151454.html))

- 2026-04-28: Armstrong World shares drop after earnings miss despite steady revenue ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/armstrong-world-shares-drop-earnings-102816028.html))

- 2026-07-28: Armstrong World’s (NYSE:AWI) Q2 CY2026: Beats On Revenue, Full-Year Outlook Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/armstrong-world-nyse-awi-q2-102711746.html))

### Sales · FY2025–2026

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm; observed 2026-02-24.

- FY2017: $894M 

- FY2018: $975M 

- FY2019: $1.0B 

- FY2020: $937M 

- FY2021: $1.1B 

- FY2022: $1.2B 

- FY2023: $1.3B 

- FY2024: $1.4B 

- FY2025: $1.6B 

- FY2026: $1.7B 

### Gross margin · FY2025

gross margin 40.6%; source https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm; observed 2026-02-24.

- FY2016: 36.6% 

- FY2017: 35.7% 

- FY2018: 34.2% 

- FY2019: 38.1% 

- FY2020: 35.6% 

- FY2021: 36.7% 

- FY2022: 36.4% 

- FY2023: 38.4% 

- FY2024: 40.3% 

- FY2025: 40.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 1.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm (filed 2026-02-24); FY2025: revenue 1620800000; grossProfit 658700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AWI.US: Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass, metal, wood, felt, architectural resin and glass, wood fiber, and glass-reinforced-gypsum; and ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems. It also designs, produces, and sources specialty ceilings, walls, and other interior and exterior architectural applications primarily for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc. was founded in 1860 and is headquartered in Lancaster, Pennsylvania.

### Why customers stay

Margins ranged from 38.4% to 40.6% during 2023–25; it earns 17.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 38.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 40.3%.

- Source: https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 40.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.09924821372352548],[2017,0.16849880562012698],[2018,0.1943833118676129],[2019,0.21324980774887492],[2020,0.14757095709570958],[2021,0.13865222964459875],[2022,0.17349170031301417],[2023,0.17845010559040025],[2024,0.265852501997874],[2025,0.3015407001917346]]; median 0.1759709029517072. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 36% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.3667992047713718],[2022,0.3643662314491931],[2023,0.3837245213094503]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 9 of 10 years; bought back USD 128.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 104200000; owner earnings 74100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 500000; upkeep 89200000; owner earnings 224100000. Growth capex / owner earnings = 0.0022311468094600626.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 71900000; owner earnings 206100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 71300000; owner earnings 240800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 79800000; owner earnings 201700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 74800000; owner earnings 208500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 83800000; owner earnings 229100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 82800000; owner earnings 285299999. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 109400000; owner earnings 319700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,8600000],[2018,8600000],[2019,35600000],[2020,39200000],[2021,41400000],[2022,44200000],[2023,46900000],[2024,50600000],[2025,55200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 128900000 USD.

### Are managers owners

Insiders own 1.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AWI.US SharesStats.PercentInsiders = 1.548 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years; actual growth was over 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.10794126225168013. Price 166.59; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.0017889087656529517 → FY2025 7.33256880733945. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $37.50 per share

- 2016-11: $41.70 per share

- 2016-12: $41.80 per share

- 2017-01: $39.95 per share

- 2017-02: $46.00 per share

- 2017-03: $46.05 per share

- 2017-04: $46.75 per share

- 2017-05: $41.65 per share

- 2017-06: $46.00 per share

- 2017-07: $48.55 per share

- 2017-08: $47.50 per share

- 2017-09: $51.25 per share

- 2017-10: $51.10 per share

- 2017-11: $59.95 per share

- 2017-12: $60.55 per share

- 2018-01: $62.70 per share

- 2018-02: $60.30 per share

- 2018-03: $56.30 per share

- 2018-04: $56.00 per share

- 2018-05: $60.60 per share

- 2018-06: $63.20 per share

- 2018-07: $67.90 per share

- 2018-08: $69.80 per share

- 2018-09: $69.60 per share

- 2018-10: $61.75 per share

- 2018-11: $66.99 per share

- 2018-12: $58.21 per share

- 2019-01: $68.04 per share

- 2019-02: $73.18 per share

- 2019-03: $79.42 per share

- 2019-04: $86.67 per share

- 2019-05: $88.70 per share

- 2019-06: $97.20 per share

- 2019-07: $97.71 per share

- 2019-08: $95.47 per share

- 2019-09: $96.70 per share

- 2019-10: $93.53 per share

- 2019-11: $96.02 per share

- 2019-12: $93.97 per share

- 2020-01: $100.33 per share

- 2020-02: $100.15 per share

- 2020-03: $79.42 per share

- 2020-04: $77.08 per share

- 2020-05: $75.39 per share

- 2020-06: $77.96 per share

- 2020-07: $71.24 per share

- 2020-08: $73.74 per share

- 2020-09: $68.81 per share

- 2020-10: $59.90 per share

- 2020-11: $77.06 per share

- 2020-12: $74.39 per share

- 2021-01: $78.21 per share

- 2021-02: $85.58 per share

- 2021-03: $90.09 per share

- 2021-04: $103.65 per share

- 2021-05: $106.35 per share

- 2021-06: $107.26 per share

- 2021-07: $108.18 per share

- 2021-08: $103.93 per share

- 2021-09: $95.47 per share

- 2021-10: $105.65 per share

- 2021-11: $105.97 per share

- 2021-12: $116.12 per share

- 2022-01: $99.02 per share

- 2022-02: $88.40 per share

- 2022-03: $90.01 per share

- 2022-04: $84.66 per share

- 2022-05: $83.50 per share

- 2022-06: $74.96 per share

- 2022-07: $89.35 per share

- 2022-08: $83.99 per share

- 2022-09: $79.23 per share

- 2022-10: $75.57 per share

- 2022-11: $76.41 per share

- 2022-12: $68.59 per share

- 2023-01: $77.41 per share

- 2023-02: $78.85 per share

- 2023-03: $71.24 per share

- 2023-04: $68.66 per share

- 2023-05: $62.44 per share

- 2023-06: $73.46 per share

- 2023-07: $77.36 per share

- 2023-08: $76.59 per share

- 2023-09: $72.00 per share

- 2023-10: $75.89 per share

- 2023-11: $84.81 per share

- 2023-12: $98.32 per share

- 2024-01: $99.21 per share

- 2024-02: $120.61 per share

- 2024-03: $124.22 per share

- 2024-04: $114.88 per share

- 2024-05: $115.80 per share

- 2024-06: $113.24 per share

- 2024-07: $131.40 per share

- 2024-08: $126.76 per share

- 2024-09: $131.43 per share

- 2024-10: $139.55 per share

- 2024-11: $159.83 per share

- 2024-12: $141.33 per share

- 2025-01: $151.01 per share

- 2025-02: $153.66 per share

- 2025-03: $140.88 per share

- 2025-04: $145.02 per share

- 2025-05: $155.63 per share

- 2025-06: $162.44 per share

- 2025-07: $188.17 per share

- 2025-08: $195.77 per share

- 2025-09: $196.01 per share

- 2025-10: $190.43 per share

- 2025-11: $189.74 per share

- 2025-12: $191.10 per share

- 2026-01: $183.74 per share

- 2026-02: $173.50 per share

- 2026-03: $164.80 per share

- 2026-04: $170.39 per share

- 2026-05: $157.90 per share

- 2026-06: $160.42 per share

- 2026-07: $174.66 per share

- 2026-08: $172.58 per share

- 2026-09: $161.93 per share

- 2026-10: $166.59 per share

## Annual estimated value (USD per share)

- FY2016: low $2.27 per share, central $2.27 per share, high $2.27 per share

- FY2017: low $2.64 per share, central $2.65 per share, high $2.65 per share

- FY2018: low $24.02 per share, central $26.52 per share, high $29.85 per share

- FY2019: low $48.94 per share, central $55.61 per share, high $64.51 per share

- FY2020: low $47.64 per share, central $53.87 per share, high $62.17 per share

- FY2021: low $54.95 per share, central $62.30 per share, high $72.10 per share

- FY2022: low $54.70 per share, central $62.00 per share, high $71.72 per share

- FY2023: low $56.90 per share, central $64.60 per share, high $74.86 per share

- FY2024: low $64.67 per share, central $73.43 per share, high $85.09 per share

- FY2025: low $75.90 per share, central $86.11 per share, high $99.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/7431/000119312526065183/awi-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [John Armitage](https://gigainvestors.com/EC): 925,394 AWI shares; USD 148,452,000 reported position value; 1.43% of portfolio; add; quarter 2026 Q2.
- [Donald Yacktman](https://gigainvestors.com/YAM): 754,944 AWI shares; USD 121,108,000 reported position value; 1.5% of portfolio; add; quarter 2026 Q2.

# AWI — Armstrong World Industries Inc.

Held by 2 investors · USD 269,560,000 total · 2026 Q2 · reported price USD 160.42 (split-adjusted).
Page: https://gigainvestors.com/s/AWI

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| John Armitage (https://gigainvestors.com/EC) | USD 148,452,000 | 1.4% | add +106.54% |
| Donald Yacktman (https://gigainvestors.com/YAM) | USD 121,108,000 | 1.5% | add +1.75% |

## Total held by quarter

- 2014 Q2: USD 155,061,000 · 1 holder · USD 57.43
- 2014 Q3: USD 515,200,000 · 1 holder · USD 56.00
- 2014 Q4: USD 470,304,000 · 1 holder · USD 51.12
- 2015 Q1: USD 528,724,000 · 1 holder · USD 57.47
- 2015 Q2: USD 490,176,000 · 1 holder · USD 53.28
- 2015 Q3: USD 439,208,000 · 1 holder · USD 47.74
- 2015 Q4: USD 420,716,000 · 1 holder · USD 45.73
- 2016 Q1: USD 445,004,000 · 1 holder · USD 48.37
- 2016 Q2: USD 360,180,000 · 1 holder · USD 39.15
- 2016 Q3: USD 380,144,000 · 1 holder · USD 41.32
- 2016 Q4: USD 384,560,000 · 1 holder · USD 41.80
- 2017 Q1: USD 423,660,000 · 1 holder · USD 46.05
- 2017 Q2: USD 423,200,000 · 1 holder · USD 46.00
- 2017 Q3: USD 471,633,865 · 1 holder · USD 51.25
- 2017 Q4: USD 557,218,157 · 1 holder · USD 60.55
- 2018 Q1: USD 385,802,056 · 1 holder · USD 56.30
- 2018 Q2: USD 505,807,296 · 2 holders · USD 63.20
- 2018 Q3: USD 438,166,730 · 2 holders · USD 69.60
- 2018 Q4: USD 208,826,105 · 2 holders · USD 58.21
- 2019 Q1: USD 111,182,758 · 2 holders · USD 79.42
- 2019 Q2: USD 127,041,761 · 1 holder · USD 97.20
- 2019 Q3: USD 126,007,449 · 1 holder · USD 96.70
- 2019 Q4: USD 119,185,722 · 1 holder · USD 93.97
- 2020 Q1: USD 100,605,444 · 1 holder · USD 79.42
- 2020 Q2: USD 99,869,099 · 1 holder · USD 77.96
- 2020 Q3: USD 87,335,716 · 1 holder · USD 68.81
- 2020 Q4: USD 92,634,891 · 1 holder · USD 74.39
- 2021 Q1: USD 209,741,142 · 2 holders · USD 90.09
- 2021 Q2: USD 247,661,088 · 2 holders · USD 107.26
- 2021 Q3: USD 216,915,000 · 2 holders · USD 95.47
- 2021 Q4: USD 267,799,079 · 2 holders · USD 116.12
- 2022 Q1: USD 260,528,004 · 2 holders · USD 90.01
- 2022 Q2: USD 216,900,508 · 2 holders · USD 74.96
- 2022 Q3: USD 228,171,625 · 2 holders · USD 79.23
- 2022 Q4: USD 210,054,886 · 2 holders · USD 68.59
- 2023 Q1: USD 217,228,855 · 2 holders · USD 71.24
- 2023 Q2: USD 86,628,219 · 1 holder · USD 73.46
- 2023 Q3: USD 84,341,448 · 1 holder · USD 72.00
- 2023 Q4: USD 114,173,412 · 1 holder · USD 98.32
- 2024 Q1: USD 138,055,748 · 1 holder · USD 124.22
- 2024 Q2: USD 124,623,677 · 1 holder · USD 113.24
- 2024 Q3: USD 130,587,271 · 1 holder · USD 131.43
- 2024 Q4: USD 132,567,681 · 1 holder · USD 141.33
- 2025 Q1: USD 122,606,314 · 1 holder · USD 140.88
- 2025 Q2: USD 139,915,257 · 1 holder · USD 162.44
- 2025 Q3: USD 148,827,453 · 1 holder · USD 196.01
- 2025 Q4: USD 141,746,896 · 1 holder · USD 191.10
- 2026 Q1: USD 196,107,551 · 2 holders · USD 164.80
- 2026 Q2: USD 269,560,000 · 2 holders · USD 160.42