TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
34.5 USD
+0.27 (+0.79%)
34.5 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TREX. TREX was compared to 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 not valued too expensively and it also shows 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.
Each year in the past 5 years TREX had a positive operating cash flow.
1.2 Ratios
TREX's Return On Assets of 13.62% is amongst the best of the industry. TREX outperforms 82.93% of its industry peers.
TREX has a better Return On Equity (18.98%) than 68.29% of its industry peers.
TREX has a Return On Invested Capital of 16.07%. This is amongst the best in the industry. TREX outperforms 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TREX is significantly above the industry average of 12.44%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(16.07%). The reason for the recent decline needs to be investigated.
| 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 Profit Margin of 16.76%. This is amongst the best in the industry. TREX outperforms 90.24% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
TREX's Operating Margin of 23.50% 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's Gross Margin of 39.69% is fine compared to the rest of the industry. TREX outperforms 75.61% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TREX is creating value.
The number of shares outstanding for TREX has been reduced compared to 1 year ago.
Compared to 5 years ago, TREX has less shares outstanding
The debt/assets ratio for TREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.55 indicates that TREX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.55, TREX belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
The Debt to FCF ratio of TREX is 10.60, which is on the high side as it means it would take TREX, 10.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.60, TREX is doing worse than 65.85% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that TREX is not too dependend on debt financing.
TREX has a Debt to Equity ratio of 0.11. This is in the better half of the industry: TREX outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.55 |
ROIC/WACC1.7
WACC9.47%
2.3 Liquidity
TREX has a Current Ratio of 1.20. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
TREX has a Current ratio of 1.20. This is amonst the worse of the industry: TREX underperforms 85.37% of its industry peers.
TREX has a Quick Ratio of 1.20. This is a bad value and indicates that TREX is not financially healthy enough and could expect problems in meeting its short term obligations.
TREX has a worse Quick ratio (0.67) than 90.24% of its industry peers.
| 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.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
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
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.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.78 indicates a rather expensive valuation of TREX.
TREX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. TREX is valued slightly cheaper when compared to this.
TREX is valuated correctly with a Price/Forward Earnings ratio of 13.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREX indicates a somewhat cheap valuation: TREX is cheaper than 70.73% of the companies listed in the same industry.
TREX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREX indicates a somewhat cheap valuation: TREX is cheaper than 60.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TREX is valued a bit more expensive than the industry average as 70.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 352.39 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TREX does not grow enough to justify the current Price/Earnings ratio.
TREX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)1.67
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 |
34.5
+0.27 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-2.43%
Ins Owners0.63%
Ins Owner Change6.5%
Market Cap3.70B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts75
Price Target45.76 (32.64%)
Short Float %6.51%
Short Ratio2.51
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)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)-36.98%
PT rev (3m)-36.98%
EPS NQ rev (1m)-93.79%
EPS NQ rev (3m)-93.87%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-24.11%
Revenue NQ rev (3m)-24.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 13.57 | ||
| P/S | 3.13 | ||
| P/FCF | 352.39 | ||
| P/OCF | 13.02 | ||
| P/B | 3.55 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)1.94
EY5.62%
EPS(NY)2.54
Fwd EY7.37%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.68%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)2.07
PEG (5Y)1.67
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 | 8.55 |
F-Score5
WACC9.47%
ROIC/WACC1.7
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)0.1%
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-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
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 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 17.78 and the Price/Book (PB) ratio is 3.55.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.