TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
41.65 USD
+3.13 (+8.13%)
41.5 USD
-0.15 (-0.36%)
Taking everything into account, TREX scores 4 out of 10 in our fundamental rating. TREX was compared to 42 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 is valued expensive and it does not seem to be growing.
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.
In the past 5 years TREX has always been profitable.
TREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TREX has a better Return On Assets (13.62%) than 83.33% of its industry peers.
TREX's Return On Equity of 18.98% is fine compared to the rest of the industry. TREX outperforms 69.05% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TREX belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TREX is significantly above the industry average of 12.61%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(16.07%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 16.76%, TREX belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
TREX's Profit Margin has been stable in the last couple of years.
TREX has a Operating Margin of 23.50%. This is amongst the best in the industry. TREX outperforms 97.62% of its industry peers.
TREX's Operating Margin has been stable in the last couple of years.
TREX has a Gross Margin of 39.69%. This is in the better half 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.
TREX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TREX has been reduced compared to 5 years ago.
Compared to 1 year ago, TREX has a worse debt to assets ratio.
2.2 Solvency
TREX has an Altman-Z score of 9.71. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX has a Altman-Z score of 9.71. This is amongst the best in the industry. TREX outperforms 95.24% of its industry peers.
The Debt to FCF ratio of TREX is 10.60, which is on the high side as it means it would take TREX, 10.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.60, TREX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
TREX has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
TREX has a better Debt to Equity ratio (0.11) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 9.71 |
ROIC/WACC1.6
WACC10.06%
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 88.10% of its industry peers.
A Quick Ratio of 0.67 indicates that TREX may have some problems paying its short term obligations.
TREX has a Quick ratio of 0.67. This is amonst the worse of the industry: TREX underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
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%.
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.
Measured over the past years, TREX shows a quite strong growth in Revenue. The Revenue has been growing by 9.09% on average per year.
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
Based on estimates for the next years, TREX will show a decrease in Earnings Per Share. The EPS will decrease by -2.13% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y-9.38%
EPS Next 2Y-9.22%
EPS Next 3Y-2.13%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.5%
Revenue Next 3Y3.98%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.47, 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.
The average S&P500 Price/Earnings ratio is at 27.19. TREX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 24.30, which indicates a rather expensive current valuation of TREX.
TREX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TREX is more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TREX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 24.3 |
4.2 Price Multiples
TREX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TREX is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 425.42 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
TREX's earnings are expected to decrease with -2.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-9.22%
EPS Next 3Y-2.13%
5. Dividend
5.1 Amount
TREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
41.65
+3.13 (+8.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change0.08%
Ins Owners0.67%
Ins Owner Change6.65%
Market Cap4.47B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts70
Price Target44.64 (7.18%)
Short Float %5.72%
Short Ratio2.14
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)-2.45%
PT rev (3m)-38.53%
EPS NQ rev (1m)-1326.45%
EPS NQ rev (3m)-104.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 24.3 | ||
| P/S | 3.78 | ||
| P/FCF | 425.42 | ||
| P/OCF | 15.72 | ||
| P/B | 4.28 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)1.94
EY4.66%
EPS(NY)1.71
Fwd EY4.12%
FCF(TTM)0.1
FCFY0.24%
OCF(TTM)2.65
OCFY6.36%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)N/A
PEG (5Y)2.02
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 | 9.71 |
F-Score5
WACC10.06%
ROIC/WACC1.6
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-9.22%
EPS Next 3Y-2.13%
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 3Y3.98%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year11.56%
EBIT Next 3Y6.35%
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 for 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 is the financial health of TREX COMPANY INC (TREX) stock?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.
What is the expected EPS growth for TREX COMPANY INC (TREX) stock?
The Earnings per Share (EPS) of TREX COMPANY INC (TREX) is expected to decline by -9.38% in the next year.