Armstrong World Industries, Inc. [NYSE:AWI]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Armstrong World Industries, Inc. [AWI] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give AWI an Outperform rating. The average 12-month price forecast for this stock is $74.13, with the high estimate being $85.00, the low estimate being $70.00 and the median estimate amounting to $72.50. This is compared to its latest closing price of $64.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Armstrong World Industries, Inc. [AWI] is sitting at 2.44. This is compared to 1 month ago, when its average rating was 2.70.
For the quarter ending in Sep-18 Armstrong World Industries, Inc. [AWI] generated $0.26 billion in sales. That’s 4.83% higher than the average estimate of $0.25 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Mon 25 Feb (In 44 Days).
Fundamental Analysis of Armstrong World Industries, Inc. [AWI]
Now let’s turn to look at profitability: with a current Operating Margin for Armstrong World Industries, Inc. [AWI] sitting at +18.74 and its Gross Margin at +35.94. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 13.89, and its Return on Invested Capital has reached 13.50%. Its Return on Equity is 64.14, and its Return on Assets is 12.11. These metrics suggest that this Armstrong World Industries, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Armstrong World Industries, Inc. [AWI] has generated a Total Debt to Total Equity ratio of 202.77. Similarly, its Total Debt to Total Capital is 66.97, while its Total Debt to Total Assets stands at 45.38. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 195.02, and its Long-Term Debt to Total Capital is 64.41. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 16.23 and its Total Debt to EBITDA Value is 3.63. The Enterprise Value to Sales for this firm is now 4.00, and its Total Debt to Enterprise Value stands at 0.22. Armstrong World Industries, Inc. [AWI] has a Price to Book Ratio of 7.62, a Price to Cash Flow Ratio of 19.22 and P/E Ratio of 12.42. These metrics all suggest that Armstrong World Industries, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Armstrong World Industries, Inc. [AWI] earns $229,103 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.98 and its Total Asset Turnover is 0.49. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.20 and its Current Ratio is 2.40. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Armstrong World Industries, Inc. [AWI] has 50.70M shares outstanding, amounting to a total market cap of $3.27B. Its stock price has been found in the range of 54.34 to 73.45. At its current price, it has moved by -12.29% from its 52-week high, and it has moved 18.55% from its 52-week low.
This stock’s Beta value is currently 1.72, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.75. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Armstrong World Industries, Inc. [AWI] a Reliable Buy?
Armstrong World Industries, Inc. [AWI] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.