TREX COMPANY INC (TREX)
US89531P1057 - Common Stock
Taking everything into account, TREX scores 6 out of 10 in our fundamental rating. TREX was compared to 39 industry peers in the Building Products industry. TREX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TREX is quite expensive at the moment. It does show a decent growth rate. These ratings could make TREX a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year TREX was profitable.
TREX had a positive operating cash flow in the past year.
Each year in the past 5 years TREX has been profitable.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
TREX has a better Return On Assets (18.83%) than 94.87% of its industry peers.
With a decent Return On Equity value of 26.87%, TREX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.86%, TREX belongs to the top of the industry, outperforming 92.31% 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 13.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.83% | ||
| ROE | 26.87% | ||
| ROIC | 21.86% |
ROA(3y)21.49%
ROA(5y)22.34%
ROE(3y)31.02%
ROE(5y)31.02%
ROIC(3y)25.23%
ROIC(5y)25.85%
1.3 Margins
TREX's Profit Margin of 20.23% is amongst the best of the industry. TREX outperforms 97.44% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 26.99%, TREX belongs to the top of the industry, outperforming 100.00% 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's Gross Margin of 42.52% is amongst the best of the industry. TREX outperforms 82.05% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.99% | ||
| PM (TTM) | 20.23% | ||
| GM | 42.52% |
OM growth 3Y-1.65%
OM growth 5Y-0.46%
PM growth 3Y-2.01%
PM growth 5Y-0.94%
GM growth 3Y0.41%
GM growth 5Y-0.84%
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 remains at a similar level compared to 1 year ago.
TREX has less shares outstanding than it did 5 years ago.
TREX has a better debt/assets ratio than last year.
2.2 Solvency
TREX has an Altman-Z score of 15.62. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX has a better Altman-Z score (15.62) than 97.44% of its industry peers.
TREX has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.43, TREX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that TREX is not too dependend on debt financing.
TREX has a better Debt to Equity ratio (0.08) than 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 15.62 |
ROIC/WACC2.14
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.40 indicates that TREX should not have too much problems paying its short term obligations.
TREX has a worse Current ratio (1.40) than 79.49% of its industry peers.
TREX has a Quick Ratio of 1.40. 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 (0.66) is worse than 92.31% of its industry peers.
The current and quick ratio evaluation for TREX is rather negative, while it does have 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 | 1.4 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.14% over the past year.
Measured over the past years, TREX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.24% on average per year.
Looking at the last year, TREX shows a quite strong growth in Revenue. The Revenue has grown by 8.10% in the last year.
Measured over the past years, TREX shows a quite strong growth in Revenue. The Revenue has been growing by 9.86% on average per year.
EPS 1Y (TTM)25.14%
EPS 3Y6.27%
EPS 5Y10.24%
EPS Q2Q%-35.09%
Revenue 1Y (TTM)8.1%
Revenue growth 3Y7.52%
Revenue growth 5Y9.86%
Sales Q2Q%-23.08%
3.2 Future
The Earnings Per Share is expected to grow by 11.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y11.78%
EPS Next 2Y9.4%
EPS Next 3Y11.16%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.33%
Revenue Next 3Y6.8%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TREX is valuated quite expensively with a Price/Earnings ratio of 32.40.
Based on the Price/Earnings ratio, TREX is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (27.55), we can say TREX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 31.87, the valuation of TREX can be described as expensive.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than the industry average as 74.36% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 24.00. TREX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.4 | ||
| Fwd PE | 31.87 |
4.2 Price Multiples
TREX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TREX is more expensive than 71.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TREX is valued expensively inside the industry as 82.05% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.32 | ||
| EV/EBITDA | 20.42 |
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)2.75
PEG (5Y)3.16
EPS Next 2Y9.4%
EPS Next 3Y11.16%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TREX COMPANY INC
NYSE:TREX (12/26/2024, 8:04:00 PM)
After market: 70.96 0 (0%)70.96
-0.15 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change-0.33%
Ins Owners0.54%
Ins Owner Change1.15%
Market Cap7.60B
Analysts72.8
Price Target82.05 (15.63%)
Short Float %4.56%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)7.29%
Min EPS beat(2)1.08%
Max EPS beat(2)13.5%
EPS beat(4)4
Avg EPS beat(4)7.42%
Min EPS beat(4)1.08%
Max EPS beat(4)13.5%
EPS beat(8)7
Avg EPS beat(8)2.97%
EPS beat(12)10
Avg EPS beat(12)4.35%
EPS beat(16)12
Avg EPS beat(16)4.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-4.84%
Max Revenue beat(2)1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)1.66%
Revenue beat(8)4
Avg Revenue beat(8)1.1%
Revenue beat(12)5
Avg Revenue beat(12)0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.8%
PT rev (1m)1.78%
PT rev (3m)0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.69%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.4 | ||
| Fwd PE | 31.87 | ||
| P/S | 6.45 | ||
| P/FCF | 155.32 | ||
| P/OCF | 29.98 | ||
| P/B | 8.56 | ||
| P/tB | 8.75 | ||
| EV/EBITDA | 20.42 |
EPS(TTM)2.19
EY3.09%
EPS(NY)2.23
Fwd EY3.14%
FCF(TTM)0.46
FCFY0.64%
OCF(TTM)2.37
OCFY3.34%
SpS11.01
BVpS8.29
TBVpS8.11
PEG (NY)2.75
PEG (5Y)3.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.83% | ||
| ROE | 26.87% | ||
| ROCE | 31.33% | ||
| ROIC | 21.86% | ||
| ROICexc | 22.12% | ||
| ROICexgc | 22.53% | ||
| OM | 26.99% | ||
| PM (TTM) | 20.23% | ||
| GM | 42.52% | ||
| FCFM | 4.15% |
ROA(3y)21.49%
ROA(5y)22.34%
ROE(3y)31.02%
ROE(5y)31.02%
ROIC(3y)25.23%
ROIC(5y)25.85%
ROICexc(3y)27.32%
ROICexc(5y)30.51%
ROICexgc(3y)27.99%
ROICexgc(5y)33.89%
ROCE(3y)37.39%
ROCE(5y)36.8%
ROICexcg growth 3Y-12.5%
ROICexcg growth 5Y-18.35%
ROICexc growth 3Y-8.8%
ROICexc growth 5Y-13.19%
OM growth 3Y-1.65%
OM growth 5Y-0.46%
PM growth 3Y-2.01%
PM growth 5Y-0.94%
GM growth 3Y0.41%
GM growth 5Y-0.84%
F-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 377.49% | ||
| Cap/Sales | 17.35% | ||
| Interest Coverage | -77.38 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 20.52% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 15.62 |
F-Score6
WACC10.21%
ROIC/WACC2.14
Cap/Depr(3y)390.73%
Cap/Depr(5y)523.65%
Cap/Sales(3y)14.81%
Cap/Sales(5y)14.61%
Profit Quality(3y)59.22%
Profit Quality(5y)49.5%
High Growth Momentum
Growth
EPS 1Y (TTM)25.14%
EPS 3Y6.27%
EPS 5Y10.24%
EPS Q2Q%-35.09%
EPS Next Y11.78%
EPS Next 2Y9.4%
EPS Next 3Y11.16%
EPS Next 5YN/A
Revenue 1Y (TTM)8.1%
Revenue growth 3Y7.52%
Revenue growth 5Y9.86%
Sales Q2Q%-23.08%
Revenue Next Year4.67%
Revenue Next 2Y5.33%
Revenue Next 3Y6.8%
Revenue Next 5YN/A
EBIT growth 1Y14.46%
EBIT growth 3Y5.74%
EBIT growth 5Y9.34%
EBIT Next Year26.51%
EBIT Next 3Y15.27%
EBIT Next 5YN/A
FCF growth 1Y-80.13%
FCF growth 3Y148.81%
FCF growth 5Y16.45%
OCF growth 1Y-34.87%
OCF growth 3Y27.63%
OCF growth 5Y23.04%