TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX • US89531P1057
41.42 USD
-0.44 (-1.05%)
At close: Feb 27, 2026
41.42 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overall TREX gets a fundamental rating of 6 out of 10. We evaluated TREX against 42 industry peers in the Building Products industry. TREX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- In the past year TREX had a positive cash flow from operations.
- Each year in the past 5 years TREX has been profitable.
- In the past 5 years TREX always reported a positive cash flow from operatings.
1.2 Ratios
- TREX has a Return On Assets of 13.10%. This is amongst the best in the industry. TREX outperforms 85.71% of its industry peers.
- Looking at the Return On Equity, with a value of 18.41%, TREX is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
- TREX's Return On Invested Capital of 14.76% 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 19.34%. This is significantly above the industry average of 11.92%.
- The last Return On Invested Capital (14.76%) for TREX is well below the 3 year average (19.34%), which needs to be investigated, but indicates that TREX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.1% | ||
| ROE | 18.41% | ||
| ROIC | 14.76% |
ROA(3y)17.45%
ROA(5y)18.96%
ROE(3y)24.59%
ROE(5y)27.64%
ROIC(3y)19.34%
ROIC(5y)21.79%
1.3 Margins
- With an excellent Profit Margin value of 16.22%, TREX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- TREX's Profit Margin has declined in the last couple of years.
- TREX's Operating Margin of 22.71% is amongst the best of the industry. TREX outperforms 97.62% of its industry peers.
- TREX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 39.40%, TREX is in the better half of the industry, outperforming 76.19% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.71% | ||
| PM (TTM) | 16.22% | ||
| GM | 39.4% |
OM growth 3Y-1.41%
OM growth 5Y-3.05%
PM growth 3Y-0.96%
PM growth 5Y-4.05%
GM growth 3Y2.56%
GM growth 5Y-0.7%
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.
- 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
- TREX has an Altman-Z score of 9.55. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
- TREX's Altman-Z score of 9.55 is amongst the best of the industry. TREX outperforms 97.62% of its industry peers.
- The Debt to FCF ratio of TREX is 1.07, which is an excellent value as it means it would take TREX, only 1.07 years of fcf income to pay off all of its debts.
- TREX has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. TREX outperforms 85.71% of its industry peers.
- TREX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.13, TREX belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 9.55 |
ROIC/WACC1.65
WACC8.93%
2.3 Liquidity
- TREX has a Current Ratio of 1.24. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
- TREX's Current ratio of 1.24 is on the low side compared to the rest of the industry. TREX is outperformed by 85.71% of its industry peers.
- A Quick Ratio of 0.29 indicates that TREX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.29, TREX is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
- 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 | 1.24 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- TREX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.13%.
- TREX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
- The Revenue has been growing slightly by 1.98% in the past year.
- The Revenue has been growing slightly by 5.92% on average over the past years.
EPS 1Y (TTM)-9.13%
EPS 3Y5.06%
EPS 5Y4.05%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y2.02%
Revenue growth 5Y5.92%
Sales Q2Q%-3.88%
3.2 Future
- TREX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.13% yearly.
- Based on estimates for the next years, TREX will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y-11.69%
EPS Next 2Y-0.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.64%
Revenue Next 2Y5.32%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.92, the valuation of TREX can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as TREX.
- TREX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
- A Price/Forward Earnings ratio of 24.82 indicates a rather expensive valuation of TREX.
- The rest of the industry has a similar Price/Forward Earnings ratio as TREX.
- When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (28.05), we can say TREX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 24.82 |
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 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.67 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
- TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.42
EPS Next 2Y-0.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
41.42
-0.44 (-1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-06 2026-05-06
Inst Owners106.94%
Inst Owner Change-0.67%
Ins Owners0.67%
Ins Owner Change14.36%
Market Cap4.44B
Revenue(TTM)1.17B
Net Income(TTM)190.41M
Analysts72.14
Price Target46.34 (11.88%)
Short Float %7.65%
Short Ratio4.33
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)171.61%
Min EPS beat(2)-11.93%
Max EPS beat(2)355.14%
EPS beat(4)3
Avg EPS beat(4)86.21%
Min EPS beat(4)-11.93%
Max EPS beat(4)355.14%
EPS beat(8)7
Avg EPS beat(8)58.4%
EPS beat(12)11
Avg EPS beat(12)43.58%
EPS beat(16)13
Avg EPS beat(16)30.08%
Revenue beat(2)1
Avg Revenue beat(2)1.21%
Min Revenue beat(2)-6.93%
Max Revenue beat(2)9.35%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-6.93%
Max Revenue beat(4)9.35%
Revenue beat(8)5
Avg Revenue beat(8)0.45%
Revenue beat(12)7
Avg Revenue beat(12)1.16%
Revenue beat(16)9
Avg Revenue beat(16)0.89%
PT rev (1m)1.59%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-177.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 24.82 | ||
| P/S | 3.78 | ||
| P/FCF | 35.67 | ||
| P/OCF | 12.4 | ||
| P/B | 4.3 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)1.89
EY4.56%
EPS(NY)1.67
Fwd EY4.03%
FCF(TTM)1.16
FCFY2.8%
OCF(TTM)3.34
OCFY8.06%
SpS10.95
BVpS9.64
TBVpS9.35
PEG (NY)N/A
PEG (5Y)5.42
Graham Number20.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.1% | ||
| ROE | 18.41% | ||
| ROCE | 22.17% | ||
| ROIC | 14.76% | ||
| ROICexc | 14.8% | ||
| ROICexgc | 15.16% | ||
| OM | 22.71% | ||
| PM (TTM) | 16.22% | ||
| GM | 39.4% | ||
| FCFM | 10.61% |
ROA(3y)17.45%
ROA(5y)18.96%
ROE(3y)24.59%
ROE(5y)27.64%
ROIC(3y)19.34%
ROIC(5y)21.79%
ROICexc(3y)19.38%
ROICexc(5y)23.04%
ROICexgc(3y)19.89%
ROICexgc(5y)23.65%
ROCE(3y)28.67%
ROCE(5y)33.07%
ROICexgc growth 3Y-13.27%
ROICexgc growth 5Y-16.28%
ROICexc growth 3Y-13.33%
ROICexc growth 5Y-14.21%
OM growth 3Y-1.41%
OM growth 5Y-3.05%
PM growth 3Y-0.96%
PM growth 5Y-4.05%
GM growth 3Y2.56%
GM growth 5Y-0.7%
F-Score6
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 371.01% | ||
| Cap/Sales | 19.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.64% | ||
| Profit Quality | 65.4% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 9.55 |
F-Score6
WACC8.93%
ROIC/WACC1.65
Cap/Depr(3y)378.26%
Cap/Depr(5y)395.21%
Cap/Sales(3y)18.54%
Cap/Sales(5y)16.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.13%
EPS 3Y5.06%
EPS 5Y4.05%
EPS Q2Q%-55.56%
EPS Next Y-11.69%
EPS Next 2Y-0.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.98%
Revenue growth 3Y2.02%
Revenue growth 5Y5.92%
Sales Q2Q%-3.88%
Revenue Next Year3.64%
Revenue Next 2Y5.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.76%
EBIT growth 3Y0.57%
EBIT growth 5Y2.68%
EBIT Next Year17.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y234.33%
FCF growth 3Y46.03%
FCF growth 5Y53.74%
OCF growth 1Y148.81%
OCF growth 3Y18.32%
OCF growth 5Y13.84%
TREX COMPANY INC / TREX FAQ
Can you provide the ChartMill fundamental rating for TREX COMPANY INC?
ChartMill assigns a fundamental rating of 6 / 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 8 / 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 -11.69% in the next year.