Armstrong World Industries designs, manufactures, and sells flooring products and ceiling systems worldwide. The company was founded in 1891 and is based in Lancaster, Pennsylvania.
AWI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AWI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Armstrong World Industries Inc ranked in the 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 275.83%. The most interesting components of our discounted cash flow analysis for Armstrong World Industries Inc ended up being:
In the past 5.5 years, Armstrong World Industries Inc has a compound free cash flow growth rate of 0.7%; that's higher than 84.97% of free cash flow generating stocks in the Basic Materials sector.
Armstrong World Industries Inc's effective tax rate, as measured by taxes paid relative to net income, is at 32 -- greater than 90.9% of US stocks with positive free cash flow.
Armstrong World Industries Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.58. This coverage rate is greater than that of merely 14.72% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AWI, try CNR, JELD, UFPI, OC, and VMC.
Armstrong World Industries (AWI) has acquired the business and assets of Moz Designs, enriching its leading portfolio of metal ceiling and wall solutions. Móz has grown to operate out of a 100% solar-powered, 30K sq. ft. facility in Oakland, with annual revenues of ~$10M. AWI funded the acquisition with available cash.Financial...
Armstrong World Industries, Inc. (AWI) Q2 2020 Earnings Conference Call July 28, 2020 11:00 AM ET Company Participants Tom Waters - Vice President, Corporate Finance Vic Grizzle - Chief Executive Officer Brian MacNeal - Chief Financial Officer Conference Call Participants John Lovallo - Bank of America Merrill Lynch Maggie Grady...
LANCASTER, Pa., July 22, 2020 (GLOBE NEWSWIRE) -- Armstrong World Industries, Inc. (NYSE:AWI), a leader in the design, innovation and manufacture of commercial and residential ceiling, wall and suspension system solutions, today announced that its Board of Directors has declared a cash dividend of $0.20 per share for the second quarter of 2020. The dividend will be paid on August 20, 2020, to shareholders of record as of the close of business on August 6, 2020. The declaration and payment of future dividends and capital allocations will be at the discretion of the Board of Directors and will be dependent upon, among other things, the company's financial position, results of operations and cash flow.Uncertainties Affecting Forward-Looking StatementsDisclosures in this release, incl...