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Fundamental analysis: Armstrong Flooring, Inc. (AFI)

Awarener score: 2.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Bottom), the business stability (Modest) and growth (Bottom), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

  • Business has been shrinking at a very fast pace. It's been last-in-rank when measured against peer companies.
  • Armstrong Flooring, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 3.3

  • AFI profit margins -on goods and services sold- are usually destitute. They stand bottom tier against rival companies.
  • Business profit on sales tends to be meagre. It's last-in-rank when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain a disappointment compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very poor in relation to total revenues. They're still bottom tier against similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain last-in-rank when measured against rivals.
  • Total net profit tends to be meagre when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 1.0

  • Armstrong Flooring, Inc. couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

  • AFI had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 3.2

  • Armstrong Flooring, Inc. usually gets meagre returns on the resources it controls. It proves last-in-rank when measured against peer firms.
  • The company normally gets meagre proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
  • There's usually little profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
  • In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's last-in-rank when measured against comparable enterprises.

Usage of Funds score: 3.8

  • AFI on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands last-in-rank when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a weak position compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.2

  • Armstrong Flooring, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be encouraging in relation to peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks below average when measured against peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers two months after the purchase. It ranks more than average in relation to industry peers.
  • The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's in a weak position compared to similar companies.
  • Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
  • Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
  • Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks a disappointment compared to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 3.8

  • Armstrong Flooring, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
  • In the past twelve months, the company consumed lots of funds. Either it reinvested heavily in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
  • The company usually consumes plenty more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving outstanding business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up lacking compared to peer ventures.
  • The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
  • The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
  • In the past twelve months, the operating business lost plenty of money. It happens to be last-in-rank when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an extremely low earnings power ability when measured against the current stock price and financial position. Profitability is significantly in dispute. It's still a disappointment compared to peer companies.

Total score: 2.9


AFI logos

Company at a glance: Armstrong Flooring, Inc. (AFI)

Sector, industry: Industrials, Building Products & Equipment

Market Cap: 0.01 billions

Revenues TTM: 0.31 billions

Armstrong Flooring, Inc., together with its subsidiaries, designs, manufactures, sources, and sells flooring products in North America and the Pacific Rim. It offers resilient flooring products. The company's products are used in the construction and renovation of commercial, residential, and institutional buildings. It sells its products to independent wholesale flooring distributors, other retailers, end-use customers, and contractors, as well as direct to specialty retailers. The company was founded in 1860 and is headquartered in Lancaster, Pennsylvania. On May 8, 2022, Armstrong Flooring, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

Awarener score: 2.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Bottom), the business stability (Modest) and growth (Bottom), and the company's inclination to return cash to the stockholders (Modest).