TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
35.08 USD
-0.42 (-1.18%)
35.08 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to TREX. 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.
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
The Return On Assets of TREX (13.62%) is better than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 18.98%, TREX is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
TREX's Return On Invested Capital of 16.07% is amongst the best of the industry. TREX outperforms 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TREX is significantly above the industry average of 12.61%.
The last Return On Invested Capital (16.07%) 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 | 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
TREX has a Profit Margin of 16.76%. This is amongst the best in the industry. TREX outperforms 90.48% of its industry peers.
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 23.50% is amongst the best of the industry. TREX outperforms 97.62% 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's Gross Margin of 39.69% is fine compared to the rest of the industry. TREX outperforms 76.19% 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 | 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.
Compared to 1 year ago, TREX has less shares outstanding
Compared to 5 years ago, TREX has less shares outstanding
Compared to 1 year ago, TREX has a worse debt to assets ratio.
2.2 Solvency
TREX has an Altman-Z score of 8.68. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX has a Altman-Z score of 8.68. This is amongst the best in the industry. TREX outperforms 90.48% of its industry peers.
TREX has a debt to FCF ratio of 10.60. This is a negative value and a sign of low solvency as TREX would need 10.60 years to pay back of 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.
With a decent Debt to Equity ratio value of 0.11, TREX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.68 |
ROIC/WACC1.77
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TREX should not have too much problems paying its short term obligations.
TREX has a worse Current ratio (1.20) than 85.71% of its industry peers.
TREX has a Quick Ratio of 1.20. 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 0.67 is on the low side compared to the rest of the industry. TREX is outperformed by 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for TREX have decreased strongly by -11.42% in the last year.
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 0.10% in the last year.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
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
TREX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.13% yearly.
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
With a Price/Earnings ratio of 18.08, TREX is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TREX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TREX is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.46 indicates a rather expensive valuation of TREX.
TREX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. TREX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TREX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 358.32 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
The excellent profitability rating of TREX may justify a higher PE ratio.
A cheap valuation may be justified as TREX's earnings are expected to decrease with -2.13% in the coming years.
PEG (NY)N/A
PEG (5Y)1.7
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% |
35.08
-0.42 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners106.96%
Inst Owner Change-2.43%
Ins Owners0.69%
Ins Owner Change6.64%
Market Cap3.76B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts68.57
Price Target44.64 (27.25%)
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)-175.02%
EPS NQ rev (3m)-104.6%
EPS NY rev (1m)-16.54%
EPS NY rev (3m)-16.82%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-27.83%
Revenue NY rev (1m)-5.75%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.19 | ||
| P/FCF | 358.32 | ||
| P/OCF | 13.24 | ||
| P/B | 3.61 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)1.94
EY5.53%
EPS(NY)1.71
Fwd EY4.89%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.55%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)N/A
PEG (5Y)1.7
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 | 8.68 |
F-Score5
WACC9.07%
ROIC/WACC1.77
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.