TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - NYSE:TREX - US89531P1057 - Common Stock
32.43 USD
-14.61 (-31.06%)
32.35 USD
-0.08 (-0.25%)
TREX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While TREX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TREX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TREX was profitable.
TREX had a positive operating cash flow in the past year.
TREX had positive earnings in each of the past 5 years.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
TREX has a Return On Assets of 12.14%. This is amongst the best in the industry. TREX outperforms 80.49% of its industry peers.
TREX has a Return On Equity of 18.87%. This is in the better half of the industry: TREX outperforms 70.73% of its industry peers.
TREX has a Return On Invested Capital of 13.92%. This is in the better half of the industry: TREX outperforms 73.17% of its industry peers.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.50%.
The last Return On Invested Capital (13.92%) for TREX is well below the 3 year average (21.94%), which needs to be investigated, but indicates that TREX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROIC | 13.92% |
ROA(3y)19.63%
ROA(5y)20.87%
ROE(3y)30.3%
ROE(5y)29.91%
ROIC(3y)21.94%
ROIC(5y)24.11%
1.3 Margins
TREX's Profit Margin of 16.53% is amongst the best of the industry. TREX outperforms 90.24% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
The Operating Margin of TREX (22.67%) is better than 97.56% of its industry peers.
In the last couple of years the Operating Margin of TREX has remained more or less at the same level.
TREX has a better Gross Margin (39.31%) than 75.61% of its industry peers.
In the last couple of years the Gross Margin of TREX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% |
OM growth 3Y-0.33%
OM growth 5Y1.01%
PM growth 3Y4.08%
PM growth 5Y0.25%
GM growth 3Y3.11%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
TREX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TREX has less shares outstanding
Compared to 5 years ago, TREX has less shares outstanding
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.66 indicates that TREX is not in any danger for bankruptcy at the moment.
TREX has a better Altman-Z score (6.66) than 78.05% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that TREX is not too dependend on debt financing.
TREX's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. TREX outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.66 |
ROIC/WACC1.52
WACC9.15%
2.3 Liquidity
TREX has a Current Ratio of 1.08. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, TREX is doing worse than 85.37% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that TREX may have some problems paying its short term obligations.
TREX's Quick ratio of 0.74 is on the low side compared to the rest of the industry. TREX is outperformed by 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.42%.
TREX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.63% yearly.
The Revenue has been growing slightly by 5.17% in the past year.
TREX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
EPS 1Y (TTM)-11.42%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%37.84%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
3.2 Future
The Earnings Per Share is expected to grow by 11.08% on average over the next years. This is quite good.
Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.72, the valuation of TREX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TREX indicates a somewhat cheap valuation: TREX is cheaper than 60.98% of the companies listed in the same industry.
TREX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.13.
A Price/Forward Earnings ratio of 12.75 indicates a correct valuation of TREX.
TREX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TREX is cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, TREX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
TREX's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TREX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TREX may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)1.57
EPS Next 2Y10.58%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.43
-14.61 (-31.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-0.32%
Ins Owners0.63%
Ins Owner Change0.89%
Market Cap3.48B
Revenue(TTM)1.15B
Net Income(TTM)186.67M
Analysts75
Price Target68.86 (112.33%)
Short Float %7.47%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.81%
Min EPS beat(2)0.78%
Max EPS beat(2)0.85%
EPS beat(4)4
Avg EPS beat(4)27.61%
Min EPS beat(4)0.78%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)17.34%
EPS beat(12)10
Avg EPS beat(12)9.14%
EPS beat(16)14
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.35%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)0.63%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.71%
PT rev (1m)-5.16%
PT rev (3m)-1.71%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-9.99%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 12.75 | ||
| P/S | 3.08 | ||
| P/FCF | N/A | ||
| P/OCF | 15.8 | ||
| P/B | 3.52 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)1.94
EY5.98%
EPS(NY)2.54
Fwd EY7.84%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY6.33%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)1.95
PEG (5Y)1.57
Graham Number20.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROCE | 22.88% | ||
| ROIC | 13.92% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 14.27% | ||
| OM | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% | ||
| FCFM | N/A |
ROA(3y)19.63%
ROA(5y)20.87%
ROE(3y)30.3%
ROE(5y)29.91%
ROIC(3y)21.94%
ROIC(5y)24.11%
ROICexc(3y)22.08%
ROICexc(5y)26.54%
ROICexgc(3y)22.55%
ROICexgc(5y)28.02%
ROCE(3y)34.9%
ROCE(5y)35.69%
ROICexgc growth 3Y-18.02%
ROICexgc growth 5Y-16.48%
ROICexc growth 3Y-17.77%
ROICexc growth 5Y-12.92%
OM growth 3Y-0.33%
OM growth 5Y1.01%
PM growth 3Y4.08%
PM growth 5Y0.25%
GM growth 3Y3.11%
GM growth 5Y0.51%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 515.77% | ||
| Cap/Sales | 26.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 6.66 |
F-Score5
WACC9.15%
ROIC/WACC1.52
Cap/Depr(3y)387.2%
Cap/Depr(5y)514.08%
Cap/Sales(3y)17.22%
Cap/Sales(5y)16.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.42%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%37.84%
EPS Next Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
EBIT Next 5YN/A
FCF growth 1Y-28.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.19%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%
TREX COMPANY INC / TREX FAQ
Can you provide the ChartMill fundamental rating for TREX COMPANY INC?
ChartMill assigns a fundamental rating of 5 / 10 to TREX.
What is the valuation status of TREX COMPANY INC (TREX) stock?
ChartMill assigns a valuation rating of 3 / 10 to TREX COMPANY INC (TREX). This can be considered as Overvalued.
What is the profitability of TREX stock?
TREX COMPANY INC (TREX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TREX COMPANY INC (TREX) stock?
The Price/Earnings (PE) ratio for TREX COMPANY INC (TREX) is 16.72 and the Price/Book (PB) ratio is 3.52.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.