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AWI

9/9 Score

Armstrong World Industries, Inc.

Analysis Date: February 6, 2026

Armstrong World Industries, Inc., together with its subsidiaries, designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin America. The company operates through Mineral Fiber and Architectural Specialties segments. The company produces suspended mineral fiber, soft fiber, fiberglass wool, and metal ceiling systems, as well as wood, wood fiber, glass-reinforced-gypsum, and felt ceiling and wall systems; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings and walls for use in commercial settings; and acoustical controls, facades, and partitions. It sells its commercial ceiling and architectural specialties products to resale distributors and ceiling system contractors; and residential ceiling products to wholesalers and retailers, such as large home centers. The company was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 37.3%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 15.8%

  • Cash Machine

    FCF / Assets > 5%

    Value: 10.0%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.6%

  • Share Buybacks

    Share Count is Dropping

    Value: -2.2%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 40.5%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Industrials

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.12x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 23.0%

Analysis Summary

A business sporting a near-perfect score on these key metrics is certainly worth a second glance. AWI demonstrates exceptional profitability with its high ROE and ROIC, while its conservative debt levels and consistent 23% growth paint a picture of a well-managed, durable enterprise. This looks like a company building a strong foundation, and that's the kind of building I like to be a part of.

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