Armstrong World Industries, Inc. (AWI) on Decifer

Decifer ranks AWI number 103 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 20% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 12% a year, profits grew 17% over the past year, and growth is speeding up, not slowing down.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Strong returns around 20% with revenue up 12% and profits up 17% are solid, but momentum of 7 below trend and no reason to grow keep it mid-pack.

The current read

The evidence on AWI lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Reshoring & Infrastructure Construction Supercycle: Federal infrastructure funding, reshoring of manufacturing and semiconductor/EV plant construction are driving a durable US non-residential and civil construction cycle.

Read the full AWI research brief · See all quality rankings

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