AWI Stock Intrinsic Value – Texas Permanent School Fund Corp reduces stake in Armstrong World Industries by 14.5% in Q2
September 18, 2024
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ARMSTRONG WORLD INDUSTRIES ($NYSE:AWI) is a leading global manufacturer of ceiling and flooring solutions for residential, commercial, and institutional spaces. In recent news, it has been reported that the Texas Permanent School Fund Corp has decreased its stake in Armstrong World Industries by 14.5% in the second quarter of this year. This change was reflected in the 13F filings, which provide a quarterly report of institutional investment managers’ holdings. It is considered to be a significant institutional investor and its actions are closely followed by the market. The reduction in their stake in Armstrong World Industries can have an impact on the company’s stock price and overall market sentiment. There could be several reasons for this action. It could be due to a change in investment strategy, where the fund may have decided to reallocate its resources to other companies or industries. It could also be a result of a loss of confidence in the company’s performance or future prospects. Another possible reason for this move could be the overall market conditions. The company continues to invest in research and development to offer innovative solutions to its customers while also focusing on sustainability and environmental responsibility.
However, it is important to consider the various factors that could have influenced this decision and not overlook the company’s strong fundamentals and long-term growth potential.
Analysis – AWI Stock Intrinsic Value
After thorough analysis of ARMSTRONG WORLD INDUSTRIES, I have determined that its financial fundamentals are strong and indicate a positive outlook for the company. This is reflected in our proprietary Valuation Line, which calculates the intrinsic value of ARMSTRONG WORLD INDUSTRIES at around $103.3 per share. However, the current market price of ARMSTRONG WORLD INDUSTRIES stock is $126.91, which is 22.8% higher than its calculated intrinsic value. This indicates that the stock is currently overvalued and may not be the best investment opportunity at this time. The overvaluation of ARMSTRONG WORLD INDUSTRIES may be attributed to market speculation and hype surrounding the company, rather than its actual financial performance. Therefore, investors should carefully consider the risks before investing in the stock at its current price. While ARMSTRONG WORLD INDUSTRIES may have strong fundamentals, it is important to remember that market prices can fluctuate and may not always reflect the true value of a company. As such, it is crucial for investors to conduct their own research and make informed decisions when it comes to investing in stocks. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWI. More…
| Total Revenues | Net Income | Net Margin |
| 1.3k | 223.8 | 17.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWI. More…
| Operations | Investing | Financing |
| 233.5 | -10.4 | -258.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AWI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.67k | 1.08k | 13.48 |
Key Ratios Snapshot
Some of the financial key ratios for AWI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.4% | 12.3% | 25.8% |
| FCF Margin | ROE | ROA |
| 11.6% | 35.4% | 12.5% |
Peers
In the world of flooring, there are a few major players that compete for market share. Armstrong World Industries Inc is one of those companies. They have been in business for over 150 years and have a strong brand name. Some of their main competitors are Forbo Holding AG, Deceuninck NV, and GMS Inc. All of these companies have their own strengths and weaknesses, but Armstrong seems to be doing well in the market.
– Forbo Holding AG ($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
Texas Permanent School Fund Corp reduced its stake in Armstrong World Industries, Inc. during the second quarter of the year. This move resulted in a decrease of 14.5% in their holdings of the company. This could suggest that the fund has a negative outlook on the stock and does not see potential for growth in the near future. It is important for investors to take note of this and conduct further analysis on the company’s financials and market trends before making any investment decisions.
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