AWIArmstrong World Industries, Inc.
Is the business good?
A genuinely good business: 9 of 9 health tests passed, earnings fully cash-backed (1.1×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 35% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AWI?
Armstrong World Industries, Inc. earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Building Products & Equipment median 9.3% · 12 months to Q2 2026
- Cash conversion
- 1.07×
Cash conversion · 0.96× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 24% |
| FY2022 | 23% |
| FY2023 | 25% |
| FY2024 | 26% |
| FY2025 | 27% |
Details›
- Gross margin12 months to Q2 2026
- 40%
- Operating margin12 months to Q2 2026
- 26%
- Net margin12 months to Q2 2026
- 19%
- Free cash flow margin
- 15%
- Revenue, trailing twelve months
- $1.70B
- Free cash flow, trailing twelve months
- $247M
- Net income, trailing twelve months
- $315M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Building Products & Equipment
Ranks #2 of 19 by RyuScore