TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
Overall TREX gets a fundamental rating of 5 out of 10. We evaluated TREX against 40 industry peers in the Building Products industry. While TREX has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TREX is valued expensive at the moment.
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
TREX's Return On Assets of 17.10% is amongst the best of the industry. TREX outperforms 95.00% of its industry peers.
TREX's Return On Equity of 26.63% is fine compared to the rest of the industry. TREX outperforms 77.50% of its industry peers.
TREX has a better Return On Invested Capital (19.15%) than 87.50% 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 12.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 26.63% | ||
| ROIC | 19.15% |
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 has a better Profit Margin (19.66%) than 95.00% of its industry peers.
In the last couple of years the Profit Margin of TREX has remained more or less at the same level.
With an excellent Operating Margin value of 26.55%, TREX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 (42.18%) than 82.50% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.55% | ||
| PM (TTM) | 19.66% | ||
| GM | 42.18% |
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.
The number of shares outstanding for TREX has been reduced compared to 1 year ago.
TREX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.88 indicates that TREX is not in any danger for bankruptcy at the moment.
TREX's Altman-Z score of 10.88 is amongst the best of the industry. TREX outperforms 95.00% of its industry peers.
TREX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, TREX is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.88 |
ROIC/WACC1.8
WACC10.62%
2.3 Liquidity
TREX has a Current Ratio of 0.93. 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 Current ratio value of 0.93, TREX is not doing good in the industry: 92.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that TREX may have some problems paying its short term obligations.
With a Quick ratio value of 0.33, TREX is not doing good in the industry: 92.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
TREX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.83%, which is quite good.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
TREX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.17%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)11.83%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-55%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-14.36%
3.2 Future
Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.58% yearly.
EPS Next Y7.52%
EPS Next 2Y10.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.94%
Revenue Next 2Y7.75%
Revenue Next 3Y7.58%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TREX is valuated quite expensively with a Price/Earnings ratio of 27.01.
TREX's Price/Earnings ratio is a bit more expensive when compared to the industry. TREX is more expensive than 67.50% of the companies in the same industry.
TREX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.13, which means the current valuation is very expensive for TREX.
65.00% of the companies in the same industry are cheaper than TREX, based on the Price/Forward Earnings ratio.
TREX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 25.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.71 |
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.
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.59
PEG (5Y)2.54
EPS Next 2Y10.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.19
-1.31 (-2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change6.58%
Ins Owners0.55%
Ins Owner Change7.35%
Market Cap6.02B
Analysts72
Price Target77.92 (38.67%)
Short Float %6.12%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)54.42%
Min EPS beat(2)13.5%
Max EPS beat(2)95.34%
EPS beat(4)4
Avg EPS beat(4)30.59%
Min EPS beat(4)1.08%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)22.26%
EPS beat(12)10
Avg EPS beat(12)11.37%
EPS beat(16)13
Avg EPS beat(16)10.13%
Revenue beat(2)2
Avg Revenue beat(2)2.07%
Min Revenue beat(2)1.66%
Max Revenue beat(2)2.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)2.48%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)6
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)0.73%
PT rev (1m)-2.65%
PT rev (3m)-5.03%
EPS NQ rev (1m)-4.4%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 25.13 | ||
| P/S | 5.23 | ||
| P/FCF | N/A | ||
| P/OCF | 41.84 | ||
| P/B | 7.08 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 16.71 |
EPS(TTM)2.08
EY3.7%
EPS(NY)2.24
Fwd EY3.98%
FCF(TTM)-0.87
FCFYN/A
OCF(TTM)1.34
OCFY2.39%
SpS10.75
BVpS7.93
TBVpS7.73
PEG (NY)3.59
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 26.63% | ||
| ROCE | 31.13% | ||
| ROIC | 19.15% | ||
| ROICexc | 19.17% | ||
| ROICexgc | 19.54% | ||
| OM | 26.55% | ||
| PM (TTM) | 19.66% | ||
| GM | 42.18% | ||
| 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%
ROICexcg growth 3Y-18.02%
ROICexcg 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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 432.85% | ||
| Cap/Sales | 20.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 10.88 |
F-Score5
WACC10.62%
ROIC/WACC1.8
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)11.83%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-55%
EPS Next Y7.52%
EPS Next 2Y10.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-14.36%
Revenue Next Year6.94%
Revenue Next 2Y7.75%
Revenue Next 3Y7.58%
Revenue Next 5YN/A
EBIT growth 1Y10.67%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year27.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-141.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.04%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%