TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
35.08 USD
-0.42 (-1.18%)
35.08 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. While TREX has a great profitability rating, there are some minor concerns on its financial health. 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.
TREX had a positive operating cash flow in the past year.
TREX had positive earnings in each of the past 5 years.
TREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 13.62%, TREX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Equity value of 18.98%, TREX is doing good in the industry, outperforming 69.05% of the companies in the same industry.
TREX has a Return On Invested Capital of 16.07%. This is amongst the best in the industry. TREX outperforms 80.95% of its industry peers.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.61%.
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 90.48% 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 23.50%, TREX belongs to the top 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.
Looking at the Gross Margin, with a value of 39.69%, 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 | 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.
Compared to 1 year ago, TREX has less shares outstanding
TREX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TREX has a worse debt to assets ratio.
2.2 Solvency
TREX has an Altman-Z score of 8.75. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX's Altman-Z score of 8.75 is amongst the best of the industry. TREX outperforms 90.48% 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's Debt to FCF ratio of 10.60 is on the low side compared to the rest of the industry. TREX is outperformed by 66.67% 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.
The Debt to Equity ratio of TREX (0.11) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.75 |
ROIC/WACC1.79
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TREX should not have too much problems paying its short term obligations.
TREX's Current ratio of 1.20 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 0.67 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.
TREX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.63% yearly.
Looking at the last year, TREX shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
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
Based on estimates for the next years, TREX will show a decrease in Earnings Per Share. The EPS will decrease by -2.13% on average per year.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y-9.38%
EPS Next 2Y-9.22%
EPS Next 3Y-2.13%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.5%
Revenue Next 3Y3.98%
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
With a Price/Earnings ratio of 18.08, TREX is valued on the expensive side.
TREX's Price/Earnings is on the same level as the industry average.
TREX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
TREX is valuated rather expensively with a Price/Forward Earnings ratio of 20.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (23.13), we can say TREX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 20.46 |
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.
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 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 358.32 | ||
| EV/EBITDA | 11.26 |
4.3 Compensation for Growth
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
TREX's earnings are expected to decrease with -2.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y-9.22%
EPS Next 3Y-2.13%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
35.08
-0.42 (-1.18%)
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 Cap3.76B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts68.57
Price Target44.64 (27.25%)
Short Float %5.72%
Short Ratio2.14
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)-2.45%
PT rev (3m)-38.53%
EPS NQ rev (1m)-175.02%
EPS NQ rev (3m)-104.6%
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 | 18.08 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.19 | ||
| P/FCF | 358.32 | ||
| P/OCF | 13.24 | ||
| P/B | 3.61 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)1.94
EY5.53%
EPS(NY)1.71
Fwd EY4.89%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.55%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)N/A
PEG (5Y)1.7
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 | 8.75 |
F-Score5
WACC8.96%
ROIC/WACC1.79
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-9.22%
EPS Next 3Y-2.13%
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 3Y3.98%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year11.56%
EBIT Next 3Y6.35%
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 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 4 / 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 -9.38% in the next year.