AWI

Armstrong World Industries Inc.

Industrial/Transportation


Presented:04/16/2014
Price:53.57
Cap:$2.93B
Current Price:138.65
Cap:$6.06B

Presented

Date04/16/2014
Price53.57
Market Cap$2.93B
Ent Value$3.87B
P/E Ratio48.5x
Book Value11.78
Div YieldN/A
Shares O/S54.71M
Ave Daily Vol1,070,000
Short Int3.34%

Current

Price138.65
Market Cap$6.06B
Armstrong World Industries, Inc. designs, manufactures, and sells flooring products and ceiling systems worldwide. The company’s Building Products segment produces suspended mineral fibers, soft fibers, and metal ceiling systems for use in commercial, institutional, and residential settings, as well as complementary ceiling products; and sells suspension system products. This segment sells its commercial ceiling materials and accessories to ceiling system contractors and resale distributors; and residential ceiling products to wholesalers and retailers. Its Resilient Flooring segment manufactures vinyl sheets, vinyl tiles, and linoleum flooring, as well as sources and sells laminate flooring products, vinyl tile products, vinyl sheet products, adhesives, and installation and maintenance materials and accessories. This segment sells its products to wholesalers, large home centers, retailers, and contractors, as well as to the manufactured homes industry. The company’s Wood Flooring segment offers pre-finished solid and engineered wood floors, and related accessories for use in new residential construction and renovation with various commercial applications in stores, restaurants, and offices. This segment sells its products to independent wholesale flooring distributors and large home centers. Armstrong World Industries, Inc. was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.

Highlights

Shares of Armstrong have generally been stalled for the better part of 18 months, but the presenter believes the current climate sets up well for a move to the upside, with volumes at trough and products leveraged to a non-residential construction cycle in the US on which the presenter is very bullish. Mid-cycle numbers could as much as double from where they currently are, implying that the stock is currently trading at about 4-5 times mid-cycle EBITDA.

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Idea Discussion

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