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Fundamental analysis AWI (Armstrong World Industries Inc)

Updated on 10/26/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Armstrong World Industries stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 8/10, meaning high quality, and a P/FCF valuation multiple of 31.6×.

Armstrong World Industries is a quality company by our criteria, but the price does not follow: the free cash flow multiple stays high. A great company bought too expensively is still a poor investment, so this is typically one to watch while waiting for a better entry point.

Sector: Building Products & Equipment. Listing: US. Current price: 168.18 USD.

Lubin scoring methodology

Armstrong World Industries Inc (AWI)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

Armstrong World Industries's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).

The 10 quantitative criteria analyzed

  1. Profitable: net margin > 5%
  2. Growing revenue: revenue growing > 10%/year over 5 years
  3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
  4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
  5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
  6. Expanding margins: operating margin widens over 5 years (operating leverage)
  7. Return on invested capital: Cash ROCE > 15% per year
  8. Debt under control: net debt repayable in less than 3 years of free cash flow
  9. Earnings converted to cash: free cash flow exceeds accounting net income
  10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Building Products & Equipment stocks we have scored, Armstrong World Industries trades at 31.6× its free cash flow, versus a median of 21.2× for that basket. On price alone, Armstrong World Industries is therefore more expensive than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Armstrong World Industries a quality stock?

Armstrong World Industries gets a quality score of 8/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Armstrong World Industries's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Armstrong World Industries's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Armstrong World Industries stock is 31.6×. At Lubin Investment, valuation is judged separately from quality.

Where to see Armstrong World Industries's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/AWI?lng=en.

Other stocks in the Building Products & Equipment sector

Go further

👉 See the full interactive analysis of AWI

Other resources : All stocks in the Building Products & Equipment sector.