Armstrong World Industries Inc Common Stock (AWI)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with business quality. Armstrong designs and sells ceiling and wall solutions, a prosaic but necessary product category. The filed numbers show steady progress: in fiscal year 2025, the year ended 2025-12-31, revenue was $1.6B, net income $308.7M, and diluted EPS $7.08, up from fiscal year 2024, the year ended 2024-12-31, revenue of $1.4B, net income $264.9M, and EPS $6.02. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $472.0M and net income $96.7M, or $2.26 per diluted share, versus revenue $424.6M and net income $87.8M in fiscal Q2 2025, the quarter ended 2025-06-30. That is low-double-digit growth. FairStock classifies it as a STALWART — steady growth, with profit up 13.9% a year over four years and revenue up 10.0%. Returns are strong: FairStock's calculated ROE is 36.62%, though ROCE of 10.62% is more modest, and the balance sheet has D/E 0.66 with an Altman Z-Score of 5.57 and Piotroski F-Score 6/9. Free cash flow is $246.7M, a 3.5% FCF yield. The trouble is price. At the 2026-10-13 close of $164.66, FairStock's calculated P/E is 22.56, P/B 7.88, PEG 2.22, EV/EBITDA 13.29, and the Graham Number is $58.58, leaving a margin of safety of -181.09%. The dividend yield is only 0.85%. This is a decent, steadily compounding industrial, but the market is paying a full price for that quality. I would want either faster growth or a lower price before calling it a bargain.

In plain English: Armstrong World Industries makes ceiling and wall products for buildings. The business looks solid: sales and profits have grown, it earns high returns on shareholders' money, and debt looks manageable. At $164.66, the stock looks expensive compared with its accounting value and cash flow, so a lot of good news is already in the price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer