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TREX COMPANY INC (TREX) Stock Fundamental Analysis

USA - NYSE:TREX - US89531P1057 - Common Stock

60.255 USD
-0.2 (-0.32%)
Last: 9/15/2025, 1:48:54 PM
Fundamental Rating

4

Overall TREX gets a fundamental rating of 4 out of 10. We evaluated TREX 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.


Dividend Valuation Growth Profitability Health

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8

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.
Each year in the past 5 years TREX has been profitable.
TREX had a positive operating cash flow in each of the past 5 years.
TREX Yearly Net Income VS EBIT VS OCF VS FCFTREX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

1.2 Ratios

With an excellent Return On Assets value of 12.14%, TREX belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
TREX has a better Return On Equity (18.87%) than 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.92%, TREX is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.76%.
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 RankSector 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%
TREX Yearly ROA, ROE, ROICTREX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

The Profit Margin of TREX (16.53%) is better than 92.68% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
TREX's Operating Margin of 22.67% is amongst the best of 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.
Looking at the Gross Margin, with a value of 39.31%, TREX is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Gross Margin of TREX has remained more or less at the same level.
Industry RankSector 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%
TREX Yearly Profit, Operating, Gross MarginsTREX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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4

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.
TREX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TREX has less shares outstanding
Compared to 1 year ago, TREX has a worse debt to assets ratio.
TREX Yearly Shares OutstandingTREX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
TREX Yearly Total Debt VS Total AssetsTREX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

TREX has an Altman-Z score of 9.95. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TREX (9.95) is better than 100.00% of its industry peers.
TREX has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
TREX has a Debt to Equity ratio of 0.25. This is in the better half of the industry: TREX outperforms 65.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Altman-Z 9.95
ROIC/WACC1.35
WACC10.29%
TREX Yearly LT Debt VS Equity VS FCFTREX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

TREX has a Current Ratio of 1.08. 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 (1.08) is worse than 87.80% 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.
Looking at the Quick ratio, with a value of 0.74, TREX is doing worse than 87.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.74
TREX Yearly Current Assets VS Current LiabilitesTREX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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4

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%.
Measured over the past years, TREX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.63% on average per year.
Looking at the last year, TREX shows a decrease in Revenue. The Revenue has decreased by -9.65% 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)-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

The Earnings Per Share is expected to grow by 11.16% on average over the next years. This is quite good.
Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 7.92% on average per year.
EPS Next Y8.94%
EPS Next 2Y11.04%
EPS Next 3Y11.16%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y7.52%
Revenue Next 3Y7.92%
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.
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.
TREX Yearly Revenue VS EstimatesTREX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
TREX Yearly EPS VS EstimatesTREX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 33.48, 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 75.61% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (27.30), we can say TREX is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 23.50, the valuation of TREX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than the industry average as 65.85% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.73. TREX is around the same levels.
Industry RankSector Rank
PE 33.48
Fwd PE 23.5
TREX Price Earnings VS Forward Price EarningsTREX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TREX is valued a bit more expensive than 68.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 20.69
TREX Per share dataTREX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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)3.74
PEG (5Y)3.15
EPS Next 2Y11.04%
EPS Next 3Y11.16%

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0

5. Dividend

5.1 Amount

No dividends for TREX!.
Industry RankSector Rank
Dividend Yield N/A

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TREX COMPANY INC

NYSE:TREX (9/15/2025, 1:48:54 PM)

60.255

-0.2 (-0.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners110.54%
Inst Owner Change-2.59%
Ins Owners0.63%
Ins Owner Change0.88%
Market Cap6.46B
Analysts73.85
Price Target72.61 (20.5%)
Short Float %7.14%
Short Ratio4.22
Dividend
Industry RankSector 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)0.43%
PT rev (3m)4.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.79%
EPS NY rev (1m)0.48%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 33.48
Fwd PE 23.5
P/S 5.72
P/FCF N/A
P/OCF 29.37
P/B 6.53
P/tB 6.72
EV/EBITDA 20.69
EPS(TTM)1.8
EY2.99%
EPS(NY)2.56
Fwd EY4.26%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY3.41%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)3.74
PEG (5Y)3.15
Profitability
Industry RankSector 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 RankSector 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 9.95
F-Score5
WACC10.29%
ROIC/WACC1.35
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 2Y11.04%
EPS Next 3Y11.16%
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 2Y7.52%
Revenue Next 3Y7.92%
Revenue Next 5YN/A
EBIT growth 1Y-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year27.97%
EBIT Next 3Y16.46%
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%