TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
Overall TREX gets a fundamental rating of 5 out of 10. We evaluated TREX against 42 industry peers in the Building Products industry. TREX scores excellent on profitability, but there are some minor concerns on its financial health. TREX is valied quite expensively at the moment, while it does show 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 has a better Return On Assets (17.10%) than 95.24% of its industry peers.
TREX's Return On Equity of 26.63% is fine compared to the rest of the industry. TREX outperforms 78.57% of its industry peers.
TREX's Return On Invested Capital of 19.15% is amongst the best of the industry. TREX outperforms 85.71% 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 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 26.63% | ||
| ROIC | 19.15% |
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's Profit Margin of 19.66% is amongst the best of the industry. TREX outperforms 95.24% of its industry peers.
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 26.55%, TREX belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
TREX's Operating Margin has been stable in the last couple of years.
The Gross Margin of TREX (42.18%) is better than 80.95% of its industry peers.
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 | 26.55% | ||
| PM (TTM) | 19.66% | ||
| GM | 42.18% |
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.
The number of shares outstanding for TREX has been reduced compared to 5 years ago.
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.02 indicates that TREX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.02, TREX belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
TREX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
TREX's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. TREX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.02 |
ROIC/WACC1.94
WACC9.86%
2.3 Liquidity
TREX has a Current Ratio of 0.93. 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 Current ratio value of 0.93, TREX is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that TREX may have some problems paying its short term obligations.
TREX has a Quick ratio of 0.33. This is amonst the worse of the industry: TREX underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The earnings per share for TREX have decreased strongly by -18.70% 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 5.17% 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)-18.7%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-25.61%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-9%
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 10.93% yearly.
Based on estimates for the next years, TREX will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y7.72%
EPS Next 2Y10.42%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y7.36%
Revenue Next 3Y8.02%
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
With a Price/Earnings ratio of 30.44, TREX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 69.05% of the companies listed in the same industry.
TREX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.44, the valuation of TREX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TREX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 22.44 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.01 |
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)3.94
PEG (5Y)2.86
EPS Next 2Y10.42%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
TREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.92
-0.26 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change3.74%
Ins Owners0.55%
Ins Owner Change7.17%
Market Cap6.10B
Analysts72.8
Price Target70.79 (24.37%)
Short Float %7.12%
Short Ratio4.17
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)54.42%
Min EPS beat(2)13.5%
Max EPS beat(2)95.34%
EPS beat(4)4
Avg EPS beat(4)30.59%
Min EPS beat(4)1.08%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)22.26%
EPS beat(12)10
Avg EPS beat(12)11.37%
EPS beat(16)13
Avg EPS beat(16)10.13%
Revenue beat(2)2
Avg Revenue beat(2)2.07%
Min Revenue beat(2)1.66%
Max Revenue beat(2)2.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)2.48%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)6
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)0.73%
PT rev (1m)-7.39%
PT rev (3m)-11.56%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)1%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 22.44 | ||
| P/S | 5.3 | ||
| P/FCF | N/A | ||
| P/OCF | 42.4 | ||
| P/B | 7.18 | ||
| P/tB | 7.37 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)1.87
EY3.29%
EPS(NY)2.54
Fwd EY4.46%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)1.34
OCFY2.36%
SpS10.74
BVpS7.93
TBVpS7.72
PEG (NY)3.94
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 26.63% | ||
| ROCE | 31.13% | ||
| ROIC | 19.15% | ||
| ROICexc | 19.17% | ||
| ROICexgc | 19.54% | ||
| OM | 26.55% | ||
| PM (TTM) | 19.66% | ||
| GM | 42.18% | ||
| 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%
ROICexcg growth 3Y-18.02%
ROICexcg 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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 432.85% | ||
| Cap/Sales | 20.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 11.02 |
F-Score5
WACC9.86%
ROIC/WACC1.94
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)-18.7%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-25.61%
EPS Next Y7.72%
EPS Next 2Y10.42%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-9%
Revenue Next Year6.86%
Revenue Next 2Y7.36%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
EBIT growth 1Y10.67%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.55%
EBIT Next 3Y16.56%
EBIT Next 5YN/A
FCF growth 1Y-141.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.04%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%