TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
Taking everything into account, TREX scores 6 out of 10 in our fundamental rating. TREX was compared to 40 industry peers in the Building Products industry. TREX gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, TREX is valued expensive at the moment. This makes TREX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
TREX had positive earnings in the past year.
TREX had a positive operating cash flow in the past year.
Each year in the past 5 years TREX has been profitable.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.83%, TREX belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
TREX has a Return On Equity of 26.87%. This is in the better half of the industry: TREX outperforms 77.50% of its industry peers.
TREX's Return On Invested Capital of 21.86% is amongst the best of the industry. TREX outperforms 92.50% 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 13.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.83% | ||
| ROE | 26.87% | ||
| ROIC | 21.86% |
ROA(3y)21.49%
ROA(5y)22.34%
ROE(3y)31.02%
ROE(5y)31.02%
ROIC(3y)25.23%
ROIC(5y)25.85%
1.3 Margins
With an excellent Profit Margin value of 20.23%, TREX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
In the last couple of years the Profit Margin of TREX has remained more or less at the same level.
TREX's Operating Margin of 26.99% is amongst the best of the industry. TREX outperforms 100.00% 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 Gross Margin of 42.52%. This is amongst the best in the industry. TREX outperforms 82.50% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.99% | ||
| PM (TTM) | 20.23% | ||
| GM | 42.52% |
OM growth 3Y-1.65%
OM growth 5Y-0.46%
PM growth 3Y-2.01%
PM growth 5Y-0.94%
GM growth 3Y0.41%
GM growth 5Y-0.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TREX is creating value.
TREX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TREX has less shares outstanding
The debt/assets ratio for TREX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 15.68 indicates that TREX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.68, TREX belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
The Debt to FCF ratio of TREX is 1.43, which is an excellent value as it means it would take TREX, only 1.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TREX (1.43) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that TREX is not too dependend on debt financing.
TREX has a Debt to Equity ratio of 0.08. This is in the better half of the industry: TREX outperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 15.68 |
ROIC/WACC2.03
WACC10.76%
2.3 Liquidity
A Current Ratio of 1.40 indicates that TREX should not have too much problems paying its short term obligations.
TREX's Current ratio of 1.40 is on the low side compared to the rest of the industry. TREX is outperformed by 82.50% of its industry peers.
TREX has a Quick Ratio of 1.40. This is a bad value and indicates that TREX is not financially healthy enough and could expect problems in meeting its short term obligations.
TREX's Quick ratio of 0.66 is on the low side compared to the rest of the industry. TREX is outperformed by 92.50% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.14% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.10%.
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.
EPS 1Y (TTM)25.14%
EPS 3Y6.27%
EPS 5Y10.24%
EPS Q2Q%-35.09%
Revenue 1Y (TTM)8.1%
Revenue growth 3Y7.52%
Revenue growth 5Y9.86%
Sales Q2Q%-23.08%
3.2 Future
TREX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.13% yearly.
Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 6.90% on average per year.
EPS Next Y11.96%
EPS Next 2Y9.56%
EPS Next 3Y11.13%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.42%
Revenue Next 3Y6.9%
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.
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 33.04, the valuation of TREX can be described as expensive.
Based on the Price/Earnings ratio, TREX is valued a bit more expensive than 75.00% 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 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.41 indicates a quite expensive valuation of TREX.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
TREX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.04 | ||
| Fwd PE | 32.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREX is valued a bit more expensive than 70.00% of the companies in the same industry.
82.50% of the companies in the same industry are cheaper than TREX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 158.37 | ||
| EV/EBITDA | 20.5 |
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)2.76
PEG (5Y)3.23
EPS Next 2Y9.56%
EPS Next 3Y11.13%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TREX COMPANY INC
NYSE:TREX (2/5/2025, 4:15:00 PM)
After market: 72.35 0 (0%)72.35
+0.93 (+1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change1.22%
Ins Owners0.54%
Ins Owner Change-0.1%
Market Cap7.75B
Analysts72.8
Price Target80.05 (10.64%)
Short Float %5.8%
Short Ratio5.37
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)7.29%
Min EPS beat(2)1.08%
Max EPS beat(2)13.5%
EPS beat(4)4
Avg EPS beat(4)7.42%
Min EPS beat(4)1.08%
Max EPS beat(4)13.5%
EPS beat(8)7
Avg EPS beat(8)2.97%
EPS beat(12)10
Avg EPS beat(12)4.35%
EPS beat(16)12
Avg EPS beat(16)4.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-4.84%
Max Revenue beat(2)1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)1.66%
Revenue beat(8)4
Avg Revenue beat(8)1.1%
Revenue beat(12)5
Avg Revenue beat(12)0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.8%
PT rev (1m)-3.29%
PT rev (3m)-0.7%
EPS NQ rev (1m)7.98%
EPS NQ rev (3m)-72.66%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-15.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.04 | ||
| Fwd PE | 32.41 | ||
| P/S | 6.57 | ||
| P/FCF | 158.37 | ||
| P/OCF | 30.57 | ||
| P/B | 8.73 | ||
| P/tB | 8.93 | ||
| EV/EBITDA | 20.5 |
EPS(TTM)2.19
EY3.03%
EPS(NY)2.23
Fwd EY3.09%
FCF(TTM)0.46
FCFY0.63%
OCF(TTM)2.37
OCFY3.27%
SpS11.01
BVpS8.29
TBVpS8.11
PEG (NY)2.76
PEG (5Y)3.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.83% | ||
| ROE | 26.87% | ||
| ROCE | 31.33% | ||
| ROIC | 21.86% | ||
| ROICexc | 22.12% | ||
| ROICexgc | 22.53% | ||
| OM | 26.99% | ||
| PM (TTM) | 20.23% | ||
| GM | 42.52% | ||
| FCFM | 4.15% |
ROA(3y)21.49%
ROA(5y)22.34%
ROE(3y)31.02%
ROE(5y)31.02%
ROIC(3y)25.23%
ROIC(5y)25.85%
ROICexc(3y)27.32%
ROICexc(5y)30.51%
ROICexgc(3y)27.99%
ROICexgc(5y)33.89%
ROCE(3y)37.39%
ROCE(5y)36.8%
ROICexcg growth 3Y-12.5%
ROICexcg growth 5Y-18.35%
ROICexc growth 3Y-8.8%
ROICexc growth 5Y-13.19%
OM growth 3Y-1.65%
OM growth 5Y-0.46%
PM growth 3Y-2.01%
PM growth 5Y-0.94%
GM growth 3Y0.41%
GM growth 5Y-0.84%
F-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 377.49% | ||
| Cap/Sales | 17.35% | ||
| Interest Coverage | -77.38 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 20.52% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 15.68 |
F-Score6
WACC10.76%
ROIC/WACC2.03
Cap/Depr(3y)390.73%
Cap/Depr(5y)523.65%
Cap/Sales(3y)14.81%
Cap/Sales(5y)14.61%
Profit Quality(3y)59.22%
Profit Quality(5y)49.5%
High Growth Momentum
Growth
EPS 1Y (TTM)25.14%
EPS 3Y6.27%
EPS 5Y10.24%
EPS Q2Q%-35.09%
EPS Next Y11.96%
EPS Next 2Y9.56%
EPS Next 3Y11.13%
EPS Next 5YN/A
Revenue 1Y (TTM)8.1%
Revenue growth 3Y7.52%
Revenue growth 5Y9.86%
Sales Q2Q%-23.08%
Revenue Next Year4.67%
Revenue Next 2Y5.42%
Revenue Next 3Y6.9%
Revenue Next 5YN/A
EBIT growth 1Y14.46%
EBIT growth 3Y5.74%
EBIT growth 5Y9.34%
EBIT Next Year26.57%
EBIT Next 3Y15.32%
EBIT Next 5YN/A
FCF growth 1Y-80.13%
FCF growth 3Y148.81%
FCF growth 5Y16.45%
OCF growth 1Y-34.87%
OCF growth 3Y27.63%
OCF growth 5Y23.04%