NYSE:TREX qualifies as a high growth stock and is consolidating.

In this article, we'll take a closer look at TREX COMPANY INC (NYSE:TREX) as a potential candidate for growth investing. While it's important for investors to conduct their own research, TREX COMPANY INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Assessing Growth for NYSE:TREX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TREX has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 65.47% over the past year.
• The Earnings Per Share has been growing by 10.24% on average over the past years. This is quite good.
• TREX shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.30%.
• Measured over the past years, TREX shows a quite strong growth in Revenue. The Revenue has been growing by 9.86% on average per year.
• Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.51% on average per year.
• TREX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.74% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for NYSE:TREX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:TREX was assigned a score of 7 for health:

• An Altman-Z score of 14.66 indicates that TREX is not in any danger for bankruptcy at the moment.
• TREX's Altman-Z score of 14.66 is amongst the best of the industry. TREX outperforms 95.00% of its industry peers.
• TREX has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
• The Debt to FCF ratio of TREX (1.34) is better than 72.50% of its industry peers.
• A Debt/Equity ratio of 0.28 indicates that TREX is not too dependend on debt financing.
• The current and quick ratio evaluation for TREX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Analysis for NYSE:TREX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TREX has achieved a 8:

• With an excellent Return On Assets value of 19.59%, TREX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
• TREX's Return On Equity of 31.50% is amongst the best of the industry. TREX outperforms 85.00% of its industry peers.
• TREX's Return On Invested Capital of 22.00% is amongst the best of the industry. TREX outperforms 90.00% of its industry peers.
• TREX had an Average Return On Invested Capital over the past 3 years of 25.23%. This is significantly above the industry average of 13.54%.
• The Profit Margin of TREX (20.60%) is better than 100.00% of its industry peers.
• Looking at the Operating Margin, with a value of 27.51%, TREX belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
• TREX's Gross Margin of 42.90% is amongst the best of the industry. TREX outperforms 82.50% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:TREX is 7:

TREX has a poor technical rating and the quality of the setup is also only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of TREX

Our latest full technical report of TREX contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.