TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
35.585 USD
+0.38 (+1.07%)
TREX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While TREX has a great profitability rating, there are some minor concerns on its financial health. TREX has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TREX was profitable.
In the past year TREX had a positive cash flow from operations.
Each year in the past 5 years TREX has been profitable.
TREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TREX (13.62%) is better than 83.33% of its industry peers.
TREX has a Return On Equity of 18.98%. This is in the better half of the industry: TREX outperforms 69.05% of its industry peers.
TREX's Return On Invested Capital of 16.07% is amongst the best of the industry. TREX outperforms 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TREX is significantly above the industry average of 12.60%.
The last Return On Invested Capital (16.07%) 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 | 13.62% | ||
| ROE | 18.98% | ||
| ROIC | 16.07% |
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
The Profit Margin of TREX (16.76%) is better than 90.48% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
The Operating Margin of TREX (23.50%) is better than 97.62% of its industry peers.
TREX's Operating Margin has been stable in the last couple of years.
TREX's Gross Margin of 39.69% is fine compared to the rest of the industry. TREX outperforms 76.19% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.5% | ||
| PM (TTM) | 16.76% | ||
| GM | 39.69% |
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
TREX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.70 indicates that TREX is not in any danger for bankruptcy at the moment.
TREX has a better Altman-Z score (8.70) than 92.86% of its industry peers.
TREX has a debt to FCF ratio of 10.60. This is a negative value and a sign of low solvency as TREX would need 10.60 years to pay back of all of its debts.
The Debt to FCF ratio of TREX (10.60) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TREX is not too dependend on debt financing.
TREX's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. TREX outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.7 |
ROIC/WACC1.65
WACC9.75%
2.3 Liquidity
TREX has a Current Ratio of 1.20. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TREX (1.20) is worse than 85.71% of its industry peers.
TREX has a Quick Ratio of 1.20. This is a bad value and indicates that TREX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, TREX is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for TREX have decreased strongly by -11.42% in the last year.
Measured over the past years, TREX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.63% on average per year.
The Revenue has been growing slightly by 0.10% in the past year.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.42%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%37.84%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
3.2 Future
TREX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.78% yearly.
Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y-9.38%
EPS Next 2Y-8.76%
EPS Next 3Y-1.78%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.5%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.34, the valuation of TREX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TREX is on the same level as its industry peers.
TREX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.50.
TREX is valuated rather expensively with a Price/Forward Earnings ratio of 20.55.
The rest of the industry has a similar Price/Forward Earnings ratio as TREX.
TREX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TREX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 363.48 | ||
| EV/EBITDA | 11.17 |
4.3 Compensation for Growth
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y-8.76%
EPS Next 3Y-1.78%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:TREX (12/24/2025, 11:08:05 AM)
35.585
+0.38 (+1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners106.96%
Inst Owner Change-2.43%
Ins Owners0.69%
Ins Owner Change6.64%
Market Cap3.82B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts68.57
Price Target45.76 (28.59%)
Short Float %6.56%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)-5.54%
Min EPS beat(2)-11.93%
Max EPS beat(2)0.85%
EPS beat(4)3
Avg EPS beat(4)21.26%
Min EPS beat(4)-11.93%
Max EPS beat(4)95.34%
EPS beat(8)7
Avg EPS beat(8)14.34%
EPS beat(12)10
Avg EPS beat(12)9.07%
EPS beat(16)13
Avg EPS beat(16)8.58%
Revenue beat(2)1
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-6.93%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-6.93%
Max Revenue beat(4)2.48%
Revenue beat(8)4
Avg Revenue beat(8)-0.81%
Revenue beat(12)7
Avg Revenue beat(12)0.52%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-33.55%
PT rev (3m)-36.98%
EPS NQ rev (1m)-96.91%
EPS NQ rev (3m)-99.62%
EPS NY rev (1m)-16.54%
EPS NY rev (3m)-16.82%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-27.83%
Revenue NY rev (1m)-5.75%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 20.55 | ||
| P/S | 3.23 | ||
| P/FCF | 363.48 | ||
| P/OCF | 13.43 | ||
| P/B | 3.66 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 11.17 |
EPS(TTM)1.94
EY5.45%
EPS(NY)1.73
Fwd EY4.87%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.45%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)N/A
PEG (5Y)1.73
Graham Number20.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 18.98% | ||
| ROCE | 23.71% | ||
| ROIC | 16.07% | ||
| ROICexc | 16.21% | ||
| ROICexgc | 16.61% | ||
| OM | 23.5% | ||
| PM (TTM) | 16.76% | ||
| GM | 39.69% | ||
| FCFM | 0.89% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 459.77% | ||
| Cap/Sales | 23.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.31% | ||
| Profit Quality | 5.31% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 8.7 |
F-Score5
WACC9.75%
ROIC/WACC1.65
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 Y-9.38%
EPS Next 2Y-8.76%
EPS Next 3Y-1.78%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
Revenue Next Year1.2%
Revenue Next 2Y2.5%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year12.37%
EBIT Next 3Y6.59%
EBIT Next 5YN/A
FCF growth 1Y-86.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.27%
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 4 / 10 to TREX.
What is the valuation status of TREX COMPANY INC (TREX) stock?
ChartMill assigns a valuation rating of 2 / 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 18.34 and the Price/Book (PB) ratio is 3.66.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.