TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
35.14 USD
-0.36 (-1.01%)
Taking everything into account, TREX scores 4 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively.
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.
TREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.62%, TREX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.61%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(16.07%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of TREX (16.76%) is better than 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 has a better Operating Margin (23.50%) than 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 has a better Gross Margin (39.69%) than 76.19% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TREX is creating value.
The number of shares outstanding for TREX has been reduced compared to 1 year ago.
Compared to 5 years ago, TREX has less shares outstanding
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
TREX has an Altman-Z score of 8.75. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.75, TREX belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
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.
Looking at the Debt to Equity ratio, with a value of 0.11, TREX is in the better half of 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 | 8.75 |
ROIC/WACC1.8
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TREX should not have too much problems paying its short term obligations.
TREX's Current ratio of 1.20 is on the low side compared to the rest of the industry. TREX is outperformed by 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.
Looking at the Quick ratio, with a value of 0.67, TREX is doing worse than 90.48% of the companies in the same industry.
| 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
Based on estimates for the next years, TREX will show a decrease in Earnings Per Share. The EPS will decrease by -2.13% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 18.11 indicates a rather expensive valuation of TREX.
Compared to the rest of the industry, the Price/Earnings ratio of TREX is on the same level as its industry peers.
TREX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.50, 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.
When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (23.35), we can say TREX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TREX.
TREX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TREX is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 358.93 | ||
| EV/EBITDA | 11.26 |
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% |
NYSE:TREX (12/31/2025, 3:15:09 PM)
35.14
-0.36 (-1.01%)
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 Cap3.77B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts68.57
Price Target44.64 (27.03%)
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 | 18.11 | ||
| Fwd PE | 20.5 | ||
| P/S | 3.19 | ||
| P/FCF | 358.93 | ||
| P/OCF | 13.26 | ||
| P/B | 3.62 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)1.94
EY5.52%
EPS(NY)1.71
Fwd EY4.88%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.54%
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 | 8.75 |
F-Score5
WACC8.94%
ROIC/WACC1.8
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 of TREX COMPANY INC (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 are the PE and PB ratios of TREX COMPANY INC (TREX) stock?
The Price/Earnings (PE) ratio for TREX COMPANY INC (TREX) is 18.11 and the Price/Book (PB) ratio is 3.62.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.