TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
33.97 USD
+2.01 (+6.29%)
33.97 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TREX. TREX was compared to 41 industry peers in the Building Products industry. TREX scores excellent on profitability, but there are some minor concerns on its financial health. TREX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TREX was profitable.
In the past year TREX had a positive cash flow from operations.
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.
1.2 Ratios
TREX's Return On Assets of 13.62% is amongst the best of the industry. TREX outperforms 82.93% of its industry peers.
The Return On Equity of TREX (18.98%) is better than 68.29% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TREX belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TREX is significantly above the industry average of 12.49%.
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
TREX has a better Profit Margin (16.76%) than 90.24% 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 97.56% 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.
With a decent Gross Margin value of 39.69%, TREX is doing good in 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 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
TREX has an Altman-Z score of 8.19. 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 8.19, TREX belongs to the top of the industry, outperforming 92.68% 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.
TREX's Debt to FCF ratio of 10.60 is on the low side compared to the rest of the industry. TREX is outperformed by 65.85% of its industry peers.
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 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.19 |
ROIC/WACC1.69
WACC9.53%
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: 85.37% 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 90.24% 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
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
A Price/Earnings ratio of 17.51 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.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (25.65), we can say TREX is valued slightly cheaper.
TREX is valuated correctly with a Price/Forward Earnings ratio of 13.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREX indicates a somewhat cheap valuation: TREX is cheaper than 68.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (34.45), we can say TREX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREX is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
TREX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TREX is more expensive than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 346.91 | ||
| EV/EBITDA | 10.13 |
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)2.04
PEG (5Y)1.65
EPS Next 2Y10.58%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
TREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.97
+2.01 (+6.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-2.37%
Ins Owners0.63%
Ins Owner Change6.5%
Market Cap3.64B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts75
Price Target45.76 (34.71%)
Short Float %7.43%
Short Ratio2.99
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)-36.98%
PT rev (3m)-36.98%
EPS NQ rev (1m)-87.7%
EPS NQ rev (3m)-87.84%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-24.23%
Revenue NQ rev (3m)-24.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 13.36 | ||
| P/S | 3.08 | ||
| P/FCF | 346.91 | ||
| P/OCF | 12.82 | ||
| P/B | 3.49 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)1.94
EY5.71%
EPS(NY)2.54
Fwd EY7.49%
FCF(TTM)0.1
FCFY0.29%
OCF(TTM)2.65
OCFY7.8%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)2.04
PEG (5Y)1.65
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 | 8.19 |
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 17.51 and the Price/Book (PB) ratio is 3.49.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.