TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - NYSE:TREX - US89531P1057 - Common Stock
51.13 USD
-1.31 (-2.5%)
TREX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. TREX has an excellent profitability rating, but 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.
In the past year TREX had a positive cash flow from operations.
TREX had positive earnings in each of the past 5 years.
TREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TREX (12.14%) is better than 78.05% of its industry peers.
TREX has a better Return On Equity (18.87%) than 70.73% of its industry peers.
The Return On Invested Capital of TREX (13.92%) is better than 73.17% 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 12.70%.
The last Return On Invested Capital (13.92%) for TREX is well below the 3 year average (21.94%), which needs to be investigated, but indicates that TREX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROIC | 13.92% |
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 Profit Margin of 16.53%. This is amongst the best in the industry. TREX outperforms 90.24% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
TREX has a Operating Margin of 22.67%. This is amongst the best in the industry. TREX outperforms 97.56% 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 39.31%. This is in the better half of the industry: TREX outperforms 75.61% 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 | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TREX is creating value.
Compared to 1 year ago, TREX has less shares outstanding
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
An Altman-Z score of 9.01 indicates that TREX is not in any danger for bankruptcy at the moment.
TREX has a better Altman-Z score (9.01) than 95.12% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that TREX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, TREX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.01 |
ROIC/WACC1.49
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.08 indicates that TREX should not have too much problems paying its short term obligations.
TREX has a worse Current ratio (1.08) than 85.37% of its industry peers.
TREX has a Quick Ratio of 1.08. 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 Quick ratio value of 0.74, TREX is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.69%.
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 decrease in Revenue. The Revenue has decreased by -9.65% in the last year.
TREX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
EPS 1Y (TTM)-24.69%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-8.75%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%3.01%
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 11.12% on average per year.
Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y8.94%
EPS Next 2Y11.09%
EPS Next 3Y11.12%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y7.48%
Revenue Next 3Y7.8%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.41, the valuation of TREX can be described as expensive.
Based on the Price/Earnings ratio, TREX is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
TREX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.92, the valuation of TREX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, TREX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 19.92 |
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 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.95 |
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)3.18
PEG (5Y)2.67
EPS Next 2Y11.09%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TREX (10/16/2025, 9:52:55 AM)
51.13
-1.31 (-2.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-0.29%
Ins Owners0.63%
Ins Owner Change0.88%
Market Cap5.48B
Analysts73.85
Price Target72.61 (42.01%)
Short Float %6.84%
Short Ratio4.24
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)0.81%
Min EPS beat(2)0.78%
Max EPS beat(2)0.85%
EPS beat(4)4
Avg EPS beat(4)27.61%
Min EPS beat(4)0.78%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)17.34%
EPS beat(12)10
Avg EPS beat(12)9.14%
EPS beat(16)14
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.35%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)0.63%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.71%
PT rev (1m)0%
PT rev (3m)4.89%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-9.85%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 19.92 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | 24.92 | ||
| P/B | 5.54 | ||
| P/tB | 5.7 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)1.8
EY3.52%
EPS(NY)2.57
Fwd EY5.02%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY4.01%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)3.18
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROCE | 22.88% | ||
| ROIC | 13.92% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 14.27% | ||
| OM | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% | ||
| 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 515.77% | ||
| Cap/Sales | 26.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 9.01 |
F-Score5
WACC9.32%
ROIC/WACC1.49
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)-24.69%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-8.75%
EPS Next Y8.94%
EPS Next 2Y11.09%
EPS Next 3Y11.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%3.01%
Revenue Next Year7.46%
Revenue Next 2Y7.48%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
EBIT Next 5YN/A
FCF growth 1Y-28.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.19%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%