Armstrong World Number Of Shares Shorted vs. Return On Equity

AWI Stock  USD 159.83  0.39  0.24%   
Based on the measurements of profitability obtained from Armstrong World's financial statements, Armstrong World Industries is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Armstrong World's ability to earn profits and add value for shareholders. As of now, Armstrong World's Operating Cash Flow Sales Ratio is increasing as compared to previous years. The Armstrong World's current Days Of Sales Outstanding is estimated to increase to 43.60, while Sales General And Administrative To Revenue is projected to decrease to 0.14. As of now, Armstrong World's Income Tax Expense is decreasing as compared to previous years. The Armstrong World's current Net Income Per Share is estimated to increase to 5.26, while Accumulated Other Comprehensive Income is projected to decrease to (109.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.230.3837
Way Down
Slightly volatile
For Armstrong World profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Armstrong World to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Armstrong World Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Armstrong World's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Armstrong World Industries over time as well as its relative position and ranking within its peers.
  

Armstrong World's Revenue Breakdown by Earning Segment

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Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Armstrong World. If investors know Armstrong will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Armstrong World listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.122
Dividend Share
1.148
Earnings Share
5.67
Revenue Per Share
31.742
Quarterly Revenue Growth
0.113
The market value of Armstrong World Indu is measured differently than its book value, which is the value of Armstrong that is recorded on the company's balance sheet. Investors also form their own opinion of Armstrong World's value that differs from its market value or its book value, called intrinsic value, which is Armstrong World's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Armstrong World's market value can be influenced by many factors that don't directly affect Armstrong World's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Armstrong World's value and its price as these two are different measures arrived at by different means. Investors typically determine if Armstrong World is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Armstrong World's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Armstrong World Indu Return On Equity vs. Number Of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Armstrong World's current stock value. Our valuation model uses many indicators to compare Armstrong World value to that of its competitors to determine the firm's financial worth.
Armstrong World Industries is rated below average in number of shares shorted category among its peers. It is number one stock in return on equity category among its peers . The ratio of Number Of Shares Shorted to Return On Equity for Armstrong World Industries is about  1,655,610 . As of now, Armstrong World's Return On Equity is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Armstrong World's earnings, one of the primary drivers of an investment's value.

Armstrong World's Earnings Breakdown by Geography

Armstrong Return On Equity vs. Number Of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Armstrong World

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
634.26 K
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Armstrong World

Return On Equity

 = 

Net Income

Total Equity

 = 
0.38
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Armstrong Return On Equity Comparison

Armstrong World is currently under evaluation in return on equity category among its peers.

Armstrong World Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Armstrong World, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Armstrong World will eventually generate negative long term returns. The profitability progress is the general direction of Armstrong World's change in net profit over the period of time. It can combine multiple indicators of Armstrong World, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-104.7 M-109.9 M
Operating Income323.7 M339.9 M
Income Before Tax298.3 M313.2 M
Total Other Income Expense Net-25.4 M-26.7 M
Net Income223.8 M235 M
Income Tax Expense74.5 M78.2 M
Net Income Applicable To Common Shares182.6 M144.7 M
Net Income From Continuing Ops223.8 M182.8 M
Non Operating Income Net Other6.9 M6.6 M
Interest Income3.5 M3.3 M
Net Interest Income-31.8 M-33.4 M
Change To Netincome-47.1 M-44.7 M
Net Income Per Share 5.01  5.26 
Income Quality 1.04  2.07 
Net Income Per E B T 0.75  0.71 

Armstrong Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Armstrong World. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Armstrong World position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Armstrong World's important profitability drivers and their relationship over time.

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When determining whether Armstrong World Indu offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Armstrong World's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Armstrong World Industries Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Armstrong World Industries Stock:
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You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project Armstrong World's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Armstrong World Indu at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Armstrong World's income statement, its balance sheet, and the statement of cash flows.
Potential Armstrong World investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Armstrong World investors may work on each financial statement separately, they are all related. The changes in Armstrong World's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Armstrong World's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.