TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - NYSE:TREX - US89531P1057 - Common Stock
31.77 USD
-0.54 (-1.67%)
31.93 USD
+0.16 (+0.5%)
TREX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. TREX scores excellent on profitability, but there are some minor concerns on its financial health. TREX has a correct valuation and a medium growth rate.
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.
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 82.93% of the companies in the same industry.
TREX has a better Return On Equity (18.98%) than 68.29% of its industry peers.
TREX has a better Return On Invested Capital (16.07%) than 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TREX is significantly above the industry average of 12.50%.
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
With an excellent Profit Margin value of 16.76%, TREX belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of TREX has remained more or less at the same level.
TREX has a Operating Margin of 23.50%. This is amongst the best in the industry. TREX outperforms 97.56% of its industry peers.
TREX's Operating Margin has been stable in the last couple of years.
TREX has a Gross Margin of 39.69%. This is in the better half of the industry: TREX outperforms 75.61% 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.
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
An Altman-Z score of 8.16 indicates that TREX is not in any danger for bankruptcy at the moment.
TREX's Altman-Z score of 8.16 is amongst the best of the industry. TREX outperforms 92.68% of its industry peers.
The Debt to FCF ratio of TREX is 10.60, which is on the high side as it means it would take TREX, 10.60 years of fcf income to pay off all of its debts.
TREX has a worse Debt to FCF ratio (10.60) than 65.85% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TREX is not too dependend on debt financing.
TREX has a Debt to Equity ratio of 0.11. This is in the better half of the industry: TREX outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.16 |
ROIC/WACC1.69
WACC9.53%
2.3 Liquidity
TREX has a Current Ratio of 1.20. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
TREX has a Current ratio of 1.20. This is amonst the worse of the industry: TREX underperforms 85.37% 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.
The Quick ratio of TREX (0.67) is worse than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.42%.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
TREX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
TREX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.08% yearly.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.38, the valuation of TREX can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as TREX.
TREX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.49, TREX is valued correctly.
Based on the Price/Forward Earnings ratio, TREX is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. TREX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
60.98% of the companies in the same industry are more expensive than TREX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 70.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 324.45 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TREX may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)1.54
EPS Next 2Y10.58%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.77
-0.54 (-1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-2.93%
Ins Owners0.63%
Ins Owner Change6.26%
Market Cap3.41B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts75
Price Target68.86 (116.75%)
Short Float %7.47%
Short Ratio4.76
Dividend
| Industry Rank | Sector 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)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)-5.16%
PT rev (3m)-4.75%
EPS NQ rev (1m)-78.79%
EPS NQ rev (3m)-74.44%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-22.9%
Revenue NQ rev (3m)-24.15%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 12.49 | ||
| P/S | 2.89 | ||
| P/FCF | 324.45 | ||
| P/OCF | 11.99 | ||
| P/B | 3.27 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)1.94
EY6.11%
EPS(NY)2.54
Fwd EY8.01%
FCF(TTM)0.1
FCFY0.31%
OCF(TTM)2.65
OCFY8.34%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)1.91
PEG (5Y)1.54
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 | 8.16 |
F-Score5
WACC9.53%
ROIC/WACC1.69
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 Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
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 5 / 10 to TREX.
What is the valuation status of TREX COMPANY INC (TREX) stock?
ChartMill assigns a valuation rating of 4 / 10 to TREX COMPANY INC (TREX). This can be considered as Fairly Valued.
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 16.38 and the Price/Book (PB) ratio is 3.27.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.