TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
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 is quite expensive at the moment. It does show a decent 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
With an excellent Return On Assets value of 17.10%, TREX belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
TREX has a Return On Equity of 26.63%. This is in the better half of the industry: TREX outperforms 78.05% of its industry peers.
TREX has a better Return On Invested Capital (19.15%) than 85.37% 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 13.22%.
| 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 has a better Profit Margin (19.66%) than 95.12% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 26.55%, TREX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TREX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.18%, TREX belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
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.
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
TREX has an Altman-Z score of 11.11. This indicates that TREX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.11, TREX belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that TREX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, TREX is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.11 |
ROIC/WACC1.87
WACC10.22%
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: 92.68% of the companies in the same industry are doing better.
TREX has a Quick 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.
The Quick ratio of TREX (0.33) is worse than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
TREX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.83%, which is quite good.
Measured over the past years, TREX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.63% on average per year.
Looking at the last year, TREX shows a small growth in Revenue. The Revenue has grown by 5.17% in the last 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)11.83%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-55%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-14.36%
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 10.18% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y6.66%
EPS Next 2Y10.12%
EPS Next 3Y10.18%
EPS Next 5YN/A
Revenue Next Year6.08%
Revenue Next 2Y7.16%
Revenue Next 3Y7.73%
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
A Price/Earnings ratio of 27.99 indicates a quite expensive valuation of TREX.
Based on the Price/Earnings ratio, TREX is valued a bit more expensive than the industry average as 70.73% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.88, TREX is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.24, the valuation of TREX can be described as expensive.
Based on the Price/Forward Earnings ratio, TREX is valued a bit more expensive than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, TREX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.99 | ||
| Fwd PE | 26.24 |
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 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.2 |
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)4.2
PEG (5Y)2.63
EPS Next 2Y10.12%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TREX (5/1/2025, 2:55:05 PM)
58.21
+0.39 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change0%
Ins Owners0.55%
Ins Owner Change7.41%
Market Cap6.24B
Analysts71.67
Price Target70.87 (21.75%)
Short Float %7.32%
Short Ratio3.92
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)-9.06%
PT rev (3m)-14.38%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.99 | ||
| Fwd PE | 26.24 | ||
| P/S | 5.42 | ||
| P/FCF | N/A | ||
| P/OCF | 43.36 | ||
| P/B | 7.34 | ||
| P/tB | 7.54 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)2.08
EY3.57%
EPS(NY)2.22
Fwd EY3.81%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)1.34
OCFY2.31%
SpS10.74
BVpS7.93
TBVpS7.72
PEG (NY)4.2
PEG (5Y)2.63
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 | 11.11 |
F-Score5
WACC10.22%
ROIC/WACC1.87
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)11.83%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-55%
EPS Next Y6.66%
EPS Next 2Y10.12%
EPS Next 3Y10.18%
EPS Next 5YN/A
Revenue 1Y (TTM)5.17%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%-14.36%
Revenue Next Year6.08%
Revenue Next 2Y7.16%
Revenue Next 3Y7.73%
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%