Last Updated: 07 Nov 2024
Executive Summary
Armstrong World Industries Inc. (AWI) is a leading manufacturer and distributor of roofing systems for residential and commercial buildings. With a strong financial performance, the company has a solid foundation for growth. The stock price has been trending upwards, and analysts are bullish on its long-term prospects.
Company Overview
Armstrong World Industries Inc. is headquartered in Lancaster, Pennsylvania. The company designs, manufactures, and sells roofing systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin America. The company's products include asphalt shingles, metal roofing, and roof tiles.
Fundamental Analysis
AWI has a strong financial performance. The company's revenue has grown steadily in recent years, and its profitability has improved. The company's gross profit margin is 32.3%, and its operating margin is 22.9%. AWI's return on assets is 9.84%, and its return on equity is 38.3%.
The company's balance sheet is also strong. AWI has a debt-to-equity ratio of 0.49, and its current ratio is 1.23. The company has $376.3 million in cash and equivalents, and its working capital is $262.6 million.
Technical Analysis
AWI's stock price has been trending upwards in recent months. The stock is currently trading at $153.61, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 62.2, which indicates that the stock is overbought.
Short Term Outlook
AWI's stock price is expected to continue to trend upwards in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock's RSI is overbought, which could indicate that the stock is due for a pullback.
Long Term Outlook
AWI's long-term outlook is positive. The company's strong financial performance and its position as a leader in the roofing industry are likely to support the stock price over the long term. The company's growth prospects are also positive, as the demand for roofing systems is expected to increase in the coming years.
Analyst Recommendations
Analysts are bullish on AWI's long-term prospects. The consensus analyst rating for the stock is "buy." The average analyst target price for the stock is $147.13, which represents a potential upside of 4.3% from the current price.
