TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
35.66 USD
+0.2 (+0.56%)
35.66 USD
0 (0%)
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. TREX has an excellent profitability rating, but 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
TREX had positive earnings in the past year.
TREX had a positive operating cash flow in the past year.
TREX had positive earnings in each of the past 5 years.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
TREX has a Return On Assets of 13.62%. This is amongst the best in the industry. TREX outperforms 83.33% of its industry peers.
TREX's Return On Equity of 18.98% is fine compared to the rest of the industry. TREX outperforms 69.05% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TREX belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TREX is significantly above the industry average of 12.60%.
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
TREX's Profit Margin of 16.76% is amongst the best of the industry. TREX outperforms 90.48% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 23.50%, TREX belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
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
TREX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TREX has been reduced compared to 1 year ago.
The number of shares outstanding for TREX has been reduced compared to 5 years ago.
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
TREX has an Altman-Z score of 8.74. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX has a Altman-Z score of 8.74. This is amongst the best in the industry. TREX outperforms 92.86% 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.
TREX has a Debt to FCF ratio of 10.60. This is in the lower half of the industry: TREX underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TREX is not too dependend on debt financing.
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 | 8.74 |
ROIC/WACC1.65
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TREX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, TREX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that TREX may have some problems paying 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.
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.
TREX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
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 -1.78% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y-9.38%
EPS Next 2Y-8.76%
EPS Next 3Y-1.78%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.5%
Revenue Next 3Y3.95%
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 18.38 indicates a rather expensive valuation of TREX.
The rest of the industry has a similar Price/Earnings ratio as TREX.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (26.57), we can say TREX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.60, TREX is valued on the expensive side.
TREX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.04. TREX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TREX.
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 | 364.24 | ||
| EV/EBITDA | 11.25 |
4.3 Compensation for Growth
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y-8.76%
EPS Next 3Y-1.78%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
35.66
+0.2 (+0.56%)
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 Cap3.82B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts68.57
Price Target45.76 (28.32%)
Short Float %6.56%
Short Ratio2.45
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)-33.55%
PT rev (3m)-36.98%
EPS NQ rev (1m)-96.91%
EPS NQ rev (3m)-99.62%
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 | 18.38 | ||
| Fwd PE | 20.6 | ||
| P/S | 3.24 | ||
| P/FCF | 364.24 | ||
| P/OCF | 13.46 | ||
| P/B | 3.67 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)1.94
EY5.44%
EPS(NY)1.73
Fwd EY4.86%
FCF(TTM)0.1
FCFY0.27%
OCF(TTM)2.65
OCFY7.43%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)N/A
PEG (5Y)1.73
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 | 8.74 |
F-Score5
WACC9.72%
ROIC/WACC1.65
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-8.76%
EPS Next 3Y-1.78%
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 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year12.37%
EBIT Next 3Y6.59%
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 18.38 and the Price/Book (PB) ratio is 3.67.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.