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Exploring the Growth Potential of NYSE:TREX as It Nears a Breakout.

By Mill Chart

Last update: May 15, 2024

Exploring Growth Potential: TREX COMPANY INC (NYSE:TREX) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and TREX COMPANY INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected TREX COMPANY INC on our screen for growth with base formation, suggesting it merits a closer look.

Evaluating Growth: NYSE:TREX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TREX boasts a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 65.47% over the past year.
  • TREX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.24% yearly.
  • Looking at the last year, TREX shows a very strong growth in Revenue. The Revenue has grown by 22.30%.
  • The Revenue has been growing by 9.86% on average over the past years. This is quite good.
  • Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.04% on average per year.
  • TREX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.50% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Health for NYSE:TREX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TREX has received a 7 out of 10:

  • TREX has an Altman-Z score of 15.30. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
  • TREX's Altman-Z score of 15.30 is amongst the best of the industry. TREX outperforms 97.67% of its industry peers.
  • The Debt to FCF ratio of TREX is 1.34, which is an excellent value as it means it would take TREX, only 1.34 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.34, TREX is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.28 indicates that TREX is not too dependend on debt financing.
  • 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.

Understanding NYSE:TREX's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TREX, the assigned 8 is a significant indicator of profitability:

  • TREX has a Return On Assets of 19.59%. This is amongst the best in the industry. TREX outperforms 97.67% of its industry peers.
  • With an excellent Return On Equity value of 31.50%, TREX belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 22.00%, TREX belongs to the best of the industry, outperforming 90.70% 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 13.45%.
  • The Profit Margin of TREX (20.60%) is better than 100.00% of its industry peers.
  • The Operating Margin of TREX (27.51%) is better than 97.67% of its industry peers.
  • TREX has a better Gross Margin (42.90%) than 83.72% of its industry peers.

How does the Setup look for NYSE:TREX

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:TREX currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

TREX has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 87.38, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of TREX

Check the latest full technical report of TREX for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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TREX COMPANY INC

NYSE:TREX (5/29/2024, 7:04:00 PM)

After market: 85.38 0 (0%)

85.38

-1.33 (-1.53%)

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