Stock Price & Analysis

Based on the analysis, Armstrong World Industries (AWI) stock is currently trading near its average analyst target price with mixed technical indicators and positive earnings momentum. Hold the stock as it approaches key resistance levels with improving fundamentals.

The price prediction for AWI stock in 2025 is expected to reach $158 per share, driven by strong Q4 earnings and improved margins. Analysts have raised target prices, with Goldman Sachs setting a $180 target, indicating significant upside potential.

The S1 support level for AWI Stock is $137.92 ,The R1 resistant level for AWI Stock is $152.82.

As of the end of day on 2025-03-14, the price of AWI Stock was $140.24.

The target price for AWI Stock according to analyst rating is 169.00, with the highest price target at 180.00 and the lowest at 159.00. Analysts have a Moderate Buy rating on AWI Stock overall.

The market cap of AWI is $6.1B.

Analysis and Insights

To determine whether Armstrong World Industries (AWI) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

AWI's valuation metrics indicate a premium relative to industry averages. The stock has a trailing P/E ratio of 23.21, which is higher than the industry average, suggesting investors are paying more for each dollar of earnings. The EV/EBITDA ratio of 17.3 further supports this, as it is elevated compared to peers. Additionally, the price-to-sales (PS) ratio of 4.16 and price-to-book (PB) ratio of 8.13 indicate that the stock is trading at a significant premium to its book value.

Financial Performance:

AWI has shown steady revenue growth, with Q4 2024 revenue reaching $367.7 million, up from $326.3 million in Q1 2024. Net income has also improved, with Q4 2024 net income of $62.2 million compared to $59.9 million in Q1 2024. However, the net margin of 39.14% in Q4, while healthy, has remained relatively stable, indicating limited margin expansion.

Market Sentiment and Analyst Ratings:

Analysts have a mixed outlook on AWI, with a consensus "Hold" rating and a price target of $158, representing a modest 3.61% upside from current levels. This suggests that while the stock has some potential, it may not offer significant returns at current valuations.

Conclusion:

Based on the elevated valuation metrics, moderate financial performance, and mixed analyst sentiment, AWI appears to be overvalued at current levels. Investors should exercise caution and consider whether the company's growth prospects justify the premium valuation.

Armstrong World Industries, Inc. designs, innovates, and manufactures ceiling and wall system solutions in the Americas. The Company manufactures and sources products made of numerous materials, including mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced-gypsum and felt. It also manufactures ceiling suspension system (grid) products. Its Mineral Fiber segment produces suspended mineral fiber and soft fiber ceiling systems. Its products offer various performance attributes, such as acoustical control, rated fire protection, and energy efficiency. Its Architectural Specialties segment produces, designs and sources ceilings, walls and facades for use in commercial settings. Products are available in metal, felt and wood, in addition to various colors, shapes and designs. It sells standard, premium and customized products. Architectural Specialties products are sold primarily to resale distributors and direct customers, primarily ceiling systems contractors.

Armstrong World Industries (AWI) is predicted to reach a stock price of $200 by 2030, driven by strong earnings growth and effective margin expansion strategies. Analysts have recently raised price targets, with Goldman Sachs increasing their target to $180, reflecting confidence in AWI's ability to sustain growth. The company's focus on integrating acquisitions and improving operational efficiency supports this bullish outlook.

AWI has a total of 3100 employees.