AWI Intrinsic Value – CALPERS Cuts Stock Holdings in Armstrong World Industries,
December 3, 2023
🌧️Trending News
The California Public Employees Retirement System (CalPERS) recently announced that it has substantially reduced its holdings of Armstrong World Industries ($NYSE:AWI), Inc., a leading provider of flooring and ceiling solutions. Armstrong World Industries, Inc. is a global leader in the design and manufacture of innovative products for residential and commercial interiors. Armstrong World Industries, Inc. designs, manufactures, and distributes residential and commercial flooring solutions, such as hardwood, laminate, and luxury vinyl tile flooring, as well as wall-to-wall carpets. The company also offers acoustical ceilings and suspension systems.
Additionally, Armstrong World Industries, Inc. provides the tools and resources needed to make better interior spaces. Through their Innovation Lab, they offer comprehensive design advice and product samples to help customers create unique interior spaces. CalPERS’ decision to reduce its holdings in Armstrong World Industries, Inc. comes as a surprise given the company’s track record of success and performance in the interior design space. Despite the news, Armstrong World Industries, Inc. remains a leader in the residential and commercial flooring industry and continues to bring new and innovative products to the market.
Share Price
On Monday, the California Public Employees’ Retirement System (CALPERS) revealed that it had cut its stock holdings in Armstrong World Industries, Inc. (ARMSTRONG WORLD INDUSTRIES). Following the announcement, ARMSTRONG WORLD INDUSTRIES stock opened at $83.0 and closed at $84.2, up by 1.0% from the prior closing price of 83.3. This signified a sign of confidence in the company among investors, despite the CALPERS announcement. The stock was trading at its highest levels in more than two years as investors believed that the company was well-positioned to weather any short-term headwinds posed by the CALPERS announcement. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWI. More…
| Total Revenues | Net Income | Net Margin |
| 1.29k | 225.8 | 17.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWI. More…
| Operations | Investing | Financing |
| 239.6 | 9.5 | -239.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AWI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.71k | 1.13k | 13.25 |
Key Ratios Snapshot
Some of the financial key ratios for AWI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 8.2% | 26.2% |
| FCF Margin | ROE | ROA |
| 11.0% | 36.5% | 12.3% |
Analysis – AWI Intrinsic Value
At GoodWhale, we believe that analyzing the fundamentals of ARMSTRONG WORLD INDUSTRIES is a great starting point for any investor. Our proprietary Valuation Line calculator has determined that the intrinsic value of ARMSTRONG WORLD INDUSTRIES share is around $103.3. Interestingly, the stock is currently trading at $84.2, representing an 18.5% undervaluation for the company. This could be an attractive investment opportunity for investors looking for a solid, undervalued stock. More…
Peers
In the world of flooring, there are a few major players that compete for market share. Armstrong World Industries Inc is one of those companies. They have been in business for over 150 years and have a strong brand name. Some of their main competitors are Forbo Holding AG, Deceuninck NV, and GMS Inc. All of these companies have their own strengths and weaknesses, but Armstrong seems to be doing well in the market.
– Forbo Holding AG ($LTS:0QKD)
As of 2022, Forbo Holding AG has a market cap of 1.65B and a Return on Equity of 21.17%. The company is involved in the manufacturing of flooring, adhesives, and surface treatment products. It operates in two segments: Flooring Systems and Adhesives. The Flooring Systems segment offers a wide range of linoleum, vinyl, and textile floor coverings. The Adhesives segment provides adhesives for the woodworking, construction, and textile industries.
– Deceuninck NV ($LTS:0MEL)
Deceuninck NV is a company that manufactures and sells building and construction products. Its products include windows, doors, and frames. The company has a market cap of 278.24M as of 2022 and a return on equity of 9.83%. Deceuninck NV is a publicly traded company listed on the Euronext Brussels stock exchange.
– GMS Inc ($NYSE:GMS)
GMS Inc is a leading provider of construction and distribution services to the construction industry. It has a market cap of 1.85B as of 2022 and a ROE of 26.33%. The company has a strong presence in the United States, Canada, and Mexico. It offers a wide range of products and services to its customers, including construction materials, distribution, and installation services.
Summary
The California Public Employees Retirement System (CalPERS), one of the largest US public pension funds, recently revealed a reduction in their stock holdings in Armstrong World Industries, Inc. (ARM). The move is likely due to the company’s underperformance on the market compared to its peers. While ARM has recently announced an agreement to sell its Building Products segment, the potential for growth from this deal remains uncertain and investors may be hesitant to invest in the company until its future performance becomes clearer.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
