Logo image of TREX

TREX COMPANY INC (TREX) Stock Fundamental Analysis

NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD

67.685  -0.8 (-1.18%)

Fundamental Rating

5

TREX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. TREX scores excellent on profitability, but there are some minor concerns on its financial health. TREX is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

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.
TREX Yearly Net Income VS EBIT VS OCF VS FCFTREX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

1.2 Ratios

TREX has a Return On Assets of 12.05%. This is in the better half of the industry: TREX outperforms 73.17% of its industry peers.
With a decent Return On Equity value of 21.73%, TREX is doing good in the industry, outperforming 73.17% of the companies in the same industry.
TREX has a Return On Invested Capital of 13.42%. This is in the better half of the industry: TREX outperforms 70.73% 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 12.82%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(13.42%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.05%
ROE 21.73%
ROIC 13.42%
ROA(3y)19.63%
ROA(5y)20.87%
ROE(3y)30.3%
ROE(5y)29.91%
ROIC(3y)21.94%
ROIC(5y)24.11%
TREX Yearly ROA, ROE, ROICTREX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

Looking at the Profit Margin, with a value of 17.69%, TREX belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
TREX's Profit Margin has been stable in the last couple of years.
TREX's Operating Margin of 24.00% is amongst the best of the industry. TREX outperforms 97.56% of its industry peers.
In the last couple of years the Operating Margin of TREX has remained more or less at the same level.
TREX has a Gross Margin of 40.60%. This is in the better half of the industry: TREX outperforms 78.05% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24%
PM (TTM) 17.69%
GM 40.6%
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%
TREX Yearly Profit, Operating, Gross MarginsTREX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

More info and screens

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TREX is creating value.
Compared to 1 year ago, TREX has less shares outstanding
Compared to 5 years ago, TREX has less shares outstanding
TREX has a worse debt/assets ratio than last year.
TREX Yearly Shares OutstandingTREX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
TREX Yearly Total Debt VS Total AssetsTREX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 8.63 indicates that TREX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TREX (8.63) is better than 92.68% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that TREX is not too dependend on debt financing.
TREX has a Debt to Equity ratio (0.49) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF N/A
Altman-Z 8.63
ROIC/WACC1.3
WACC10.34%
TREX Yearly LT Debt VS Equity VS FCFTREX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 0.98 indicates that TREX may have some problems paying its short term obligations.
TREX has a Current ratio of 0.98. This is amonst the worse of the industry: TREX underperforms 90.24% of its industry peers.
A Quick Ratio of 0.69 indicates that TREX may have some problems paying its short term obligations.
TREX has a worse Quick ratio (0.69) than 92.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.69
TREX Yearly Current Assets VS Current LiabilitesTREX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

More info and screens

5

3. Growth

3.1 Past

TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.70%.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
TREX shows a decrease in Revenue. In the last year, the revenue decreased by -9.10%.
Measured over the past years, TREX shows a quite strong growth in Revenue. The Revenue has been growing by 9.09% on average per year.
EPS 1Y (TTM)-18.7%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-25.61%
Revenue 1Y (TTM)-9.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-9%

3.2 Future

Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
Based on estimates for the next years, TREX will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y8.41%
EPS Next 2Y10.59%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year7.03%
Revenue Next 2Y7.44%
Revenue Next 3Y8.07%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
TREX Yearly Revenue VS EstimatesTREX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
TREX Yearly EPS VS EstimatesTREX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 36.20 indicates a quite expensive valuation of TREX.
75.61% of the companies in the same industry are cheaper than TREX, based on the Price/Earnings ratio.
TREX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.05.
TREX is valuated quite expensively with a Price/Forward Earnings ratio of 26.61.
68.29% of the companies in the same industry are cheaper than TREX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (37.67), we can say TREX is valued slightly cheaper.
Industry RankSector Rank
PE 36.2
Fwd PE 26.61
TREX Price Earnings VS Forward Price EarningsTREX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 75.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 22.72
TREX Per share dataTREX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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)4.3
PEG (5Y)3.4
EPS Next 2Y10.59%
EPS Next 3Y10.93%

More info and screens

0

5. Dividend

5.1 Amount

TREX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

TREX COMPANY INC

NYSE:TREX (7/28/2025, 9:59:14 AM)

67.685

-0.8 (-1.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners110.94%
Inst Owner Change-0.05%
Ins Owners0.64%
Ins Owner Change7.33%
Market Cap7.26B
Analysts72
Price Target70.06 (3.51%)
Short Float %8.93%
Short Ratio5.92
Dividend
Industry RankSector 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)48.06%
Min EPS beat(2)0.78%
Max EPS beat(2)95.34%
EPS beat(4)4
Avg EPS beat(4)27.67%
Min EPS beat(4)0.78%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)21%
EPS beat(12)10
Avg EPS beat(12)10.37%
EPS beat(16)13
Avg EPS beat(16)9.66%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.35%
Max Revenue beat(2)2.48%
Revenue beat(4)3
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)1.55%
Revenue beat(12)6
Avg Revenue beat(12)0.78%
Revenue beat(16)9
Avg Revenue beat(16)0.74%
PT rev (1m)1.2%
PT rev (3m)-1.14%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-9.33%
EPS NY rev (1m)0.45%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 36.2
Fwd PE 26.61
P/S 6.49
P/FCF N/A
P/OCF 44.27
P/B 7.97
P/tB 8.19
EV/EBITDA 22.72
EPS(TTM)1.87
EY2.76%
EPS(NY)2.54
Fwd EY3.76%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)1.53
OCFY2.26%
SpS10.42
BVpS8.49
TBVpS8.27
PEG (NY)4.3
PEG (5Y)3.4
Profitability
Industry RankSector Rank
ROA 12.05%
ROE 21.73%
ROCE 25.81%
ROIC 13.42%
ROICexc 13.47%
ROICexgc 13.68%
OM 24%
PM (TTM) 17.69%
GM 40.6%
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-Score4
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF N/A
Debt/EBITDA 1.37
Cap/Depr 509.53%
Cap/Sales 24.96%
Interest Coverage 250
Cash Conversion 50.75%
Profit Quality N/A
Current Ratio 0.98
Quick Ratio 0.69
Altman-Z 8.63
F-Score4
WACC10.34%
ROIC/WACC1.3
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 Y8.41%
EPS Next 2Y10.59%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-9%
Revenue Next Year7.03%
Revenue Next 2Y7.44%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
EBIT growth 1Y-20.68%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year27.47%
EBIT Next 3Y16.63%
EBIT Next 5YN/A
FCF growth 1Y30.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y510.2%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%