TREX COMPANY INC (TREX)
US89531P1057 - Common Stock
Taking everything into account, TREX scores 6 out of 10 in our fundamental rating. TREX was compared to 39 industry peers in the Building Products industry. TREX gets an excellent profitability rating and is at the same time showing great financial health properties. TREX is valied quite expensively at the moment, while it does show a decent growth rate. This makes TREX very considerable for quality investing!
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
With an excellent Return On Assets value of 18.83%, TREX belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
With a decent Return On Equity value of 26.87%, TREX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
TREX's Return On Invested Capital of 21.86% is amongst the best of the industry. TREX outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TREX is significantly above the industry average of 13.66%.
| 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
TREX's Profit Margin of 20.23% is amongst the best of the industry. TREX outperforms 97.44% 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 26.99%, TREX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TREX's Operating Margin has been stable in the last couple of years.
TREX has a Gross Margin of 42.52%. This is amongst the best in the industry. TREX outperforms 82.05% of its industry peers.
In the last couple of years the Gross Margin of TREX has remained more or less at the same level.
| 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.
The number of shares outstanding for TREX has been reduced compared to 5 years ago.
The debt/assets ratio for TREX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 15.49 indicates that TREX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.49, TREX belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
TREX has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.43, TREX is doing good in the industry, outperforming 74.36% of the companies in the same industry.
TREX has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
TREX has a Debt to Equity ratio of 0.08. This is in the better half of the industry: TREX outperforms 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 15.49 |
ROIC/WACC2.12
WACC10.3%
2.3 Liquidity
TREX has a Current Ratio of 1.40. 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 (1.40) is worse than 79.49% 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 has a Quick ratio of 0.66. This is amonst the worse of the industry: TREX underperforms 92.31% of its industry peers.
TREX does not score too well on the current and quick ratio evaluation. However, as it has 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.
Looking at the last year, TREX shows a quite strong growth in Revenue. The Revenue has grown by 8.10% in the last year.
TREX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.86% yearly.
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
Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.03% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y11.81%
EPS Next 2Y9.3%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.25%
Revenue Next 3Y6.64%
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
TREX is valuated quite expensively with a Price/Earnings ratio of 32.79.
74.36% of the companies in the same industry are cheaper than TREX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, TREX is valued at the same level.
Based on the Price/Forward Earnings ratio of 32.32, the valuation of TREX can be described as expensive.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than 71.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. TREX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 32.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREX is valued a bit more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TREX is valued expensively inside the industry as 82.05% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 157.18 | ||
| EV/EBITDA | 20.19 |
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)2.78
PEG (5Y)3.2
EPS Next 2Y9.3%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TREX COMPANY INC
NYSE:TREX (11/22/2024, 11:44:09 AM)
71.81
+1.47 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 32.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.78
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.83% | ||
| ROE | 26.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.99% | ||
| PM (TTM) | 20.23% | ||
| GM | 42.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.14%
EPS 3Y6.27%
EPS 5Y
EPS Q2Q%
EPS Next Y11.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.1%
Revenue growth 3Y7.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y