Armstrong Story

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AFI -- USA Stock  

USD 5.00  0.15  2.91%

While many traders are getting carried away by overanalyzing competition within industrials space, it is quite reasonable to concentrate on both, Armstrong Flooring and Armstrong World as potential mid-run investments. We are going to examine some of the competitive aspects of both Armstrong and Armstrong.
Published over a month ago
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Should I short all of Armstrong and Armstrong?
By analyzing existing basic indicators between Armstrong Flooring and Armstrong, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Armstrong with a short position in Armstrong Flooring. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Armstrong Flooring has an asset utilization ratio of 67.73 percent. This implies that the company is making $0.68 for each dollar of assets. An increasing asset utilization means that Armstrong Flooring is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Armstrong or Alpha is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Armstrong Flooring's Liquidity

Armstrong Flooring financial leverage refers to using borrowed capital as a funding source to finance Armstrong Flooring ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Armstrong Flooring financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Armstrong Flooring's total debt and its cash.

Correlation Between Armstrong and Alpha Pro Tech

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Armstrong Flooring together with similar or unrelated positions with a negative correlation. For example, you can also add Alpha Pro to your portfolio. If Alpha Pro is not perfectly correlated to Armstrong Flooring it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Armstrong Flooring for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between AFI and APT for more information.


Are you currently holding both Armstrong Flooring and Alpha Pro in your portfolio?
Please note if you are using this as a pair-trade strategy between Armstrong Flooring and Alpha Pro, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by Phillip Gaudreau of 5927 shares of Armstrong Flooring subject to Rule 16b-3

Legal trades by Armstrong Flooring insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Armstrong insider trading alert for grant of performance restricted stock units by Phillip Gaudreau, VP Controller, on 7th of April 2021. This event was filed by Armstrong Flooring Inc with SEC on 2021-04-07. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Armstrong Flooring Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Armstrong Flooring revenue. Based on the latest financial disclosure, Armstrong Flooring reported 584.8 M of revenue. This is 83.28% lower than that of the Industrials sector and significantly higher than that of the Building Products & Equipment industry. The revenue for all United States stocks is 93.8% higher than that of Armstrong Flooring. As for Armstrong World we see revenue of 936.9 M, which is much higher than that of the Building Products & Equipment

Armstrong584.8 Million
Armstrong936.9 Million
584.8 M
936.9 M

Our perspective of the current Armstrong Flooring rise

The coefficient of variation is down to 1044.55 as of today. Armstrong Flooring exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Armstrong Flooring individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Armstrong Flooring future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Armstrong Flooring's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Armstrong Flooring's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Armstrong Flooring

While some companies within the building products & equipment industry are still a little expensive, even after the recent corrections, Armstrong Flooring may offer a potential longer-term growth to stockholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Armstrong nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Armstrong Flooring.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Armstrong Flooring. Please refer to our Terms of Use for any information regarding our disclosure principles.

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