TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - New York Stock Exchange, Inc. - US89531P1057 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.54 |
ROIC/WACC1.31
WACC10.28%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.69 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.28 | ||
| Fwd PE | 26.67 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.38 |
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%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.84
+0.37 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
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 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)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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%