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TREX COMPANY INC (TREX) Stock Fundamental Analysis

USA - NYSE:TREX - US89531P1057 - Common Stock

52.69 USD
+0.23 (+0.44%)
Last: 10/3/2025, 8:08:17 PM
60.45 USD
+7.76 (+14.73%)
After Hours: 10/3/2025, 8:08:17 PM
Fundamental Rating

5

Overall TREX gets a fundamental rating of 5 out of 10. We evaluated TREX against 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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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.
TREX had a positive operating cash flow in each of the past 5 years.
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

Looking at the Return On Assets, with a value of 12.14%, TREX belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
The Return On Equity of TREX (18.87%) is better than 70.73% of its industry peers.
TREX has a Return On Invested Capital of 13.92%. This is in the better half of the industry: TREX outperforms 73.17% of its industry peers.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.74%.
The 3 year average ROIC (21.94%) for TREX is well above the current ROIC(13.92%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.14%
ROE 18.87%
ROIC 13.92%
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 has a better Profit Margin (16.53%) than 92.68% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
TREX's Operating Margin of 22.67% is amongst the best of the industry. TREX outperforms 97.56% of its industry peers.
TREX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 39.31%, TREX is doing good in the industry, outperforming 75.61% of the companies in the same industry.
TREX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.67%
PM (TTM) 16.53%
GM 39.31%
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

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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
TREX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TREX has a worse debt to assets ratio.
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 9.04 indicates that TREX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.04, TREX belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that TREX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, TREX is doing good in the industry, outperforming 68.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Altman-Z 9.04
ROIC/WACC1.34
WACC10.4%
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 1.08. This is a normal value and indicates that TREX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, TREX is doing worse than 85.37% of the companies in the same industry.
TREX has a Quick Ratio of 1.08. 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 (0.74) than 85.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.74
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

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4

3. Growth

3.1 Past

TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.69%.
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 decrease in Revenue. The Revenue has decreased by -9.65% 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)-24.69%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-8.75%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%3.01%

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 11.12% yearly.
The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y8.94%
EPS Next 2Y11.09%
EPS Next 3Y11.12%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y7.48%
Revenue Next 3Y7.8%
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.
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

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2

4. Valuation

4.1 Price/Earnings Ratio

TREX is valuated quite expensively with a Price/Earnings ratio of 29.27.
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 27.86, TREX is valued at the same level.
A Price/Forward Earnings ratio of 20.53 indicates a rather expensive valuation of TREX.
The rest of the industry has a similar Price/Forward Earnings ratio as TREX.
TREX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.27
Fwd PE 20.53
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 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.03
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)3.28
PEG (5Y)2.75
EPS Next 2Y11.09%
EPS Next 3Y11.12%

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0

5. Dividend

5.1 Amount

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

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TREX COMPANY INC

NYSE:TREX (10/3/2025, 8:08:17 PM)

After market: 60.45 +7.76 (+14.73%)

52.69

+0.23 (+0.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners109.04%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change0.89%
Market Cap5.65B
Analysts73.85
Price Target72.61 (37.81%)
Short Float %6.84%
Short Ratio4.24
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)0.81%
Min EPS beat(2)0.78%
Max EPS beat(2)0.85%
EPS beat(4)4
Avg EPS beat(4)27.61%
Min EPS beat(4)0.78%
Max EPS beat(4)95.34%
EPS beat(8)8
Avg EPS beat(8)17.34%
EPS beat(12)10
Avg EPS beat(12)9.14%
EPS beat(16)14
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.35%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)0.63%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.71%
PT rev (1m)0%
PT rev (3m)4.89%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-9.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 29.27
Fwd PE 20.53
P/S 5
P/FCF N/A
P/OCF 25.68
P/B 5.71
P/tB 5.87
EV/EBITDA 18.03
EPS(TTM)1.8
EY3.42%
EPS(NY)2.57
Fwd EY4.87%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY3.89%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)3.28
PEG (5Y)2.75
Profitability
Industry RankSector Rank
ROA 12.14%
ROE 18.87%
ROCE 22.88%
ROIC 13.92%
ROICexc 13.98%
ROICexgc 14.27%
OM 22.67%
PM (TTM) 16.53%
GM 39.31%
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 Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Debt/EBITDA 0.78
Cap/Depr 515.77%
Cap/Sales 26.09%
Interest Coverage 250
Cash Conversion 70.29%
Profit Quality N/A
Current Ratio 1.08
Quick Ratio 0.74
Altman-Z 9.04
F-Score5
WACC10.4%
ROIC/WACC1.34
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)-24.69%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%-8.75%
EPS Next Y8.94%
EPS Next 2Y11.09%
EPS Next 3Y11.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%3.01%
Revenue Next Year7.46%
Revenue Next 2Y7.48%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
EBIT Next 5YN/A
FCF growth 1Y-28.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.19%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%