TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - NYSE:TREX - US89531P1057 - Common Stock
32.23 USD
-0.74 (-2.24%)
32.21 USD
-0.02 (-0.06%)
TREX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While TREX has a great profitability rating, 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
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.
In the past 5 years TREX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.14%, TREX belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
TREX has a better Return On Equity (18.87%) than 70.73% of its industry peers.
TREX has a Return On Invested Capital of 13.92%. This is in the better half of the industry: TREX outperforms 73.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TREX is significantly above the industry average of 12.38%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(13.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROIC | 13.92% |
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 16.53%, 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.
With an excellent Operating Margin value of 22.67%, 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.
TREX has a better Gross Margin (39.31%) than 75.61% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% |
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.
TREX has less shares outstanding than it did 1 year ago.
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 6.72. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX has a better Altman-Z score (6.72) than 78.05% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that TREX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, TREX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.72 |
ROIC/WACC1.45
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.08 indicates that TREX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, TREX is doing worse than 87.80% of the companies in the same industry.
TREX has a Quick Ratio of 1.08. This is a bad value and indicates that TREX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, TREX is not doing good in the industry: 90.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 |
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%.
TREX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.63% yearly.
The Revenue has been growing slightly by 5.17% in the past 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)5.17%
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.
The Revenue is expected to grow by 7.80% on average over the next years.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.61, the valuation of TREX can be described as correct.
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 (26.28), we can say TREX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.67, 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.
TREX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TREX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.28 |
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)1.94
PEG (5Y)1.56
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 |
32.23
-0.74 (-2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change1.74%
Ins Owners0.63%
Ins Owner Change4.89%
Market Cap3.46B
Revenue(TTM)1.15B
Net Income(TTM)186.67M
Analysts75
Price Target68.86 (113.65%)
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)2
Avg EPS beat(2)0.81%
Min EPS beat(2)0.78%
Max EPS beat(2)0.85%
EPS beat(4)4
Avg EPS beat(4)27.61%
Min EPS beat(4)0.78%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)17.34%
EPS beat(12)10
Avg EPS beat(12)9.14%
EPS beat(16)14
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.35%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)0.63%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.71%
PT rev (1m)-5.16%
PT rev (3m)-4.75%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-9.99%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 12.67 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 15.71 | ||
| P/B | 3.49 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.94
EY6.02%
EPS(NY)2.54
Fwd EY7.89%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY6.37%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)1.94
PEG (5Y)1.56
Graham Number20.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 18.87% | ||
| ROCE | 22.88% | ||
| ROIC | 13.92% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 14.27% | ||
| OM | 22.67% | ||
| PM (TTM) | 16.53% | ||
| GM | 39.31% | ||
| FCFM | N/A |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 515.77% | ||
| Cap/Sales | 26.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 6.72 |
F-Score5
WACC9.63%
ROIC/WACC1.45
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)5.17%
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-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
EBIT Next 5YN/A
FCF growth 1Y-28.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.19%
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 16.61 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.