TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years TREX has always been profitable.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
TREX has a better Return On Assets (17.10%) than 95.12% of its industry peers.
TREX's Return On Equity of 26.63% is fine compared to the rest of the industry. TREX outperforms 78.05% of its industry peers.
TREX has a Return On Invested Capital of 19.15%. This is amongst the best in the industry. TREX outperforms 87.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TREX is significantly above the industry average of 12.96%.
| 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 95.12% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
TREX's Operating Margin of 26.55% 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 better Gross Margin (42.18%) than 82.93% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TREX 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.
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.75 indicates that TREX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TREX (10.75) is better than 95.12% 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.
With a decent Debt to Equity ratio value of 0.24, TREX is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.75 |
ROIC/WACC1.85
WACC10.37%
2.3 Liquidity
A Current Ratio of 0.93 indicates that TREX may have some problems paying its short term obligations.
TREX's Current ratio of 0.93 is on the low side compared to the rest of the industry. TREX is outperformed by 90.24% of its industry peers.
TREX has a Quick 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.
TREX has a worse Quick ratio (0.33) than 90.24% of its industry peers.
| 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.
Looking at the last year, TREX shows a small growth in Revenue. The Revenue has grown by 5.17% in the last 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)11.83%
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
TREX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.18% yearly.
The Revenue is expected to grow by 8.00% on average over the next years.
EPS Next Y6.66%
EPS Next 2Y10.12%
EPS Next 3Y10.18%
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y7.56%
Revenue Next 3Y8%
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.
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
A Price/Earnings ratio of 27.25 indicates a quite expensive valuation of TREX.
Compared to the rest of the industry, the Price/Earnings ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 68.29% of the companies listed in the same industry.
TREX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.54, TREX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
TREX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 25.54 |
4.2 Price Multiples
TREX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TREX is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.09
PEG (5Y)2.56
EPS Next 2Y10.12%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
TREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.67
+1.45 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change0.16%
Ins Owners0.55%
Ins Owner Change7.36%
Market Cap6.08B
Analysts71.67
Price Target76.44 (34.89%)
Short Float %5.73%
Short Ratio4.13
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)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)-1.9%
PT rev (3m)-7.64%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 25.54 | ||
| P/S | 5.28 | ||
| P/FCF | N/A | ||
| P/OCF | 42.22 | ||
| P/B | 7.15 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 16.43 |
EPS(TTM)2.08
EY3.67%
EPS(NY)2.22
Fwd EY3.91%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)1.34
OCFY2.37%
SpS10.74
BVpS7.93
TBVpS7.72
PEG (NY)4.09
PEG (5Y)2.56
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 | 10.75 |
F-Score5
WACC10.37%
ROIC/WACC1.85
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 Y6.66%
EPS Next 2Y10.12%
EPS Next 3Y10.18%
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-14.36%
Revenue Next Year6.51%
Revenue Next 2Y7.56%
Revenue Next 3Y8%
Revenue Next 5YN/A
EBIT growth 1Y10.67%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.55%
EBIT Next 3Y16.56%
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%