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TREX COMPANY INC (TREX) Stock Fundamental Analysis

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

67.84  +0.37 (+0.55%)

After market: 67.84 0 (0%)

Fundamental Rating

5

Taking everything into account, TREX scores 5 out of 10 in our fundamental rating. TREX was compared to 41 industry peers in the Building Products industry. TREX has an excellent profitability rating, 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

8

1. Profitability

1.1 Basic Checks

TREX had positive earnings in the past year.
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.
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's Return On Assets of 12.05% is fine compared to the rest of the industry. TREX outperforms 73.17% of its industry peers.
Looking at the Return On Equity, with a value of 21.73%, TREX is in the better half of 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 12.81%.
The last Return On Invested Capital (13.42%) for TREX is well below the 3 year average (21.94%), which needs to be investigated, but indicates that TREX had better years and this may not be a problem.
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

TREX's Profit Margin of 17.69% is amongst the best of the industry. TREX outperforms 90.24% of its industry peers.
In the last couple of years the Profit Margin of TREX has remained more or less at the same level.
TREX has a better Operating Margin (24.00%) than 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.
In the last couple of years the Gross Margin of TREX has remained more or less at the same level.
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

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.
The number of shares outstanding for TREX has been reduced compared to 1 year ago.
TREX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TREX is higher compared to a year ago.
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

TREX has an Altman-Z score of 8.54. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
TREX's Altman-Z score of 8.54 is amongst the best of the industry. TREX outperforms 92.68% of its industry peers.
TREX has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
TREX has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: TREX outperforms 56.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF N/A
Altman-Z 8.54
ROIC/WACC1.31
WACC10.28%
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

TREX has a Current Ratio of 0.98. 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 Current ratio (0.98) than 90.24% of its industry peers.
A Quick Ratio of 0.69 indicates that TREX may have some problems paying its short term obligations.
The Quick ratio of TREX (0.69) is worse 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

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%.
TREX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.63% yearly.
TREX shows a decrease in Revenue. In the last year, the revenue decreased by -9.10%.
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)-9.1%
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.
TREX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
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.
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.
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

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 36.28, TREX can be considered very expensive at the moment.
TREX's Price/Earnings ratio is a bit more expensive when compared to the industry. TREX is more expensive than 75.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (27.69), we can say TREX is valued slightly more expensively.
With a Price/Forward Earnings ratio of 26.67, TREX can be considered very expensive at the moment.
TREX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TREX is more expensive than 68.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. TREX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 36.28
Fwd PE 26.67
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

TREX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TREX is more expensive than 75.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 22.38
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 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)4.31
PEG (5Y)3.41
EPS Next 2Y10.59%
EPS Next 3Y10.93%

0

5. Dividend

5.1 Amount

No dividends for TREX!.
Industry RankSector Rank
Dividend Yield N/A

TREX COMPANY INC

NYSE:TREX (7/24/2025, 4:10:02 PM)

After market: 67.84 0 (0%)

67.84

+0.37 (+0.55%)

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-0.12%
Ins Owners0.64%
Ins Owner Change7.33%
Market Cap7.27B
Analysts72
Price Target70.06 (3.27%)
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)-8.35%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-9.05%
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)0.48%
Valuation
Industry RankSector Rank
PE 36.28
Fwd PE 26.67
P/S 6.51
P/FCF N/A
P/OCF 44.37
P/B 7.99
P/tB 8.21
EV/EBITDA 22.38
EPS(TTM)1.87
EY2.76%
EPS(NY)2.54
Fwd EY3.75%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)1.53
OCFY2.25%
SpS10.42
BVpS8.49
TBVpS8.27
PEG (NY)4.31
PEG (5Y)3.41
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 8.54
F-Score4
WACC10.28%
ROIC/WACC1.31
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%