Armstrong Story

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AFI -- USA Stock  

USD 5.09  0.03  0.59%

Armstrong Flooring Enterprise Value is most likely to decrease significantly in the upcoming years. The preceding year's Enterprise Value was reported at 90.55 Million. The current Invested Capital is estimated to increase to about 446.6 M, while Net Income Per Employee is projected to decrease to (45.4 K). The stock goes through an active upward rally. While some of us are getting worried about industrials space, it is reasonable to concentrate on Armstrong Flooring using its current fundamental data. We will evaluate why we are still confident in anticipation of a recovery. Will stockholders continue to hold, or should we expect a sell-off?
Published over a month ago
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Does Armstrong Flooring (NYSE:AFI) have stable basic indicators based on the current rise?
Armstrong Flooring is OVERVALUED at 4.46 per share with modest projections ahead.
Armstrong Flooring appears to be risky, given 1 month investment horizon. Armstrong Flooring secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had 0.12% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Armstrong Flooring technical indicators you can presently evaluate if the expected return of 0.81% is justified by implied risk. Please makes use of Armstrong Flooring Mean Deviation of 3.59, risk adjusted performance of 0.0774, and Downside Deviation of 5.22 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Armstrong Flooring income statement, its balance sheet, and the statement of cash flows. Potential Armstrong Flooring investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Armstrong Flooring investors may use each financial statement separately, they are all related. The changes in Armstrong Flooring's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Armstrong Flooring'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.
The goal of Armstrong Flooring fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Armstrong Flooring performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Armstrong Flooring shares is the value that is considered the true value of the share. If the intrinsic value Armstrong is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Armstrong Flooring.
Please read more on our fundamental analysis page.

What is Armstrong Asset Breakdown?

Armstrong Flooring reports assets on its Balance Sheet. It represents the amount of Armstrong resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Armstrong volatility, please check the breakdown of all its fundamentals

How Armstrong utilizes its cash?

To perform a cash flow analysis of Armstrong Flooring, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Armstrong Flooring is receiving and how much cash it distributes out in a given period. The Armstrong Flooring cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Armstrong Flooring Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (28.2 Million)

Armstrong Flooring Gross Profit

Armstrong Flooring Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Armstrong Flooring previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Armstrong Flooring Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

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?

Institutional investor usually refers to an organization that invests money in Armstrong Flooring on behalf of clients or other money managers. Buying and selling of large positions of Armstrong Flooring stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Armstrong Flooring stock. Let's take a look at how the ownership of Armstrong is distributed among investors.

Ownership Allocation

Armstrong Flooring retains a total of 21.63 Million outstanding shares. The majority of Armstrong Flooring outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Armstrong Flooring to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Armstrong Flooring. Please pay attention to any change in the institutional holdings of Armstrong Flooring as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors
Retail Investors21.83
 2018 2019 2020 2021 (projected)
Interest Expense4.8 M4.4 M5.06 M4.6 M
Gross Profit143.2 M85.3 M76.77 M114.12 M

Asset Utilization

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.

Current Assets
237.8 M
Assets Non Current
342.9 M
Current Assets237.81 Million38.57
Assets Non Current342.89 Million55.61
Goodwill28.42 Million4.61
Tax Assets7.43 Million1.21

Are Armstrong Flooring technical ratios showing a reversion?

Armstrong Flooring current treynor ratio boosts over 1.05. 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 Final Perspective on Armstrong Flooring

While some other firms under the building products & equipment industry are still a bit expensive, Armstrong Flooring may offer a potential longer-term growth to stockholders. To summarize, as of the 27th of February 2021, we believe that at this point, Armstrong Flooring is risky with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our present 30 days buy-hold-sell recommendation on the company is Cautious Hold.

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 Ellen Johnson 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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