TREX COMPANY INC (TREX) Stock Fundamental Analysis
NYSE:TREX - US89531P1057 - Common Stock
64.68 USD
+3.34 (+5.45%)
64.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to TREX. TREX was compared to 41 industry peers in the Building Products industry. While TREX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TREX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TREX had positive earnings in the past year.
TREX had a positive operating cash flow in the past year.
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.
1.2 Ratios
TREX has a better Return On Assets (12.14%) than 78.05% of its industry peers.
TREX has a better Return On Equity (18.87%) than 70.73% of its industry peers.
With a decent Return On Invested Capital value of 13.92%, TREX is doing good in the industry, outperforming 73.17% of the companies in the same industry.
TREX had an Average Return On Invested Capital over the past 3 years of 21.94%. This is significantly above the industry average of 12.87%.
The last Return On Invested Capital (13.92%) 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 | 12.14% | ||
| 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%
1.3 Margins
TREX has a better Profit Margin (16.53%) than 92.68% of its industry peers.
In the last couple of years the Profit Margin of TREX has remained more or less at the same level.
With an excellent Operating Margin value of 22.67%, TREX belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of TREX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 39.31%, TREX is in the better half of the industry, outperforming 73.17% 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 | 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%
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.
Compared to 1 year ago, TREX has less shares outstanding
Compared to 5 years ago, TREX has less shares outstanding
Compared to 1 year ago, TREX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.05 indicates that TREX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TREX (10.05) is better than 97.56% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that TREX is not too dependend on debt financing.
TREX has a better Debt to Equity ratio (0.25) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.05 |
ROIC/WACC1.36
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.08 indicates that TREX should not have too much problems paying its short term obligations.
TREX has a Current ratio of 1.08. This is amonst the worse of the industry: TREX underperforms 87.80% of its industry peers.
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.
With a Quick ratio value of 0.74, TREX is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for TREX have decreased strongly by -24.69% 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.
TREX shows a decrease in Revenue. In the last year, the revenue decreased by -9.65%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
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
Based on estimates for the next years, TREX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
TREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y8.41%
EPS Next 2Y10.59%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year7.03%
Revenue Next 2Y7.36%
Revenue Next 3Y7.95%
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
Based on the Price/Earnings ratio of 35.93, the valuation of TREX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TREX indicates a slightly more expensive valuation: TREX is more expensive than 73.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TREX to the average of the S&P500 Index (27.24), we can say TREX is valued slightly more expensively.
The Price/Forward Earnings ratio is 25.43, which means the current valuation is very expensive for TREX.
63.41% of the companies in the same industry are cheaper than TREX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, TREX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
70.73% of the companies in the same industry are cheaper than TREX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.99 |
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.
The excellent profitability rating of TREX may justify a higher PE ratio.
PEG (NY)4.27
PEG (5Y)3.38
EPS Next 2Y10.59%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
TREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.68
+3.34 (+5.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners110.54%
Inst Owner Change-2.51%
Ins Owners0.63%
Ins Owner Change-1.57%
Market Cap6.94B
Analysts73.85
Price Target72.61 (12.26%)
Short Float %7.19%
Short Ratio4.38
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)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)4.44%
PT rev (3m)2.12%
EPS NQ rev (1m)-9.95%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 25.43 | ||
| P/S | 6.14 | ||
| P/FCF | N/A | ||
| P/OCF | 31.52 | ||
| P/B | 7.01 | ||
| P/tB | 7.21 | ||
| EV/EBITDA | 20.99 |
EPS(TTM)1.8
EY2.78%
EPS(NY)2.54
Fwd EY3.93%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)2.05
OCFY3.17%
SpS10.53
BVpS9.23
TBVpS8.97
PEG (NY)4.27
PEG (5Y)3.38
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.05 |
F-Score5
WACC10.26%
ROIC/WACC1.36
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 Y8.41%
EPS Next 2Y10.59%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%3.01%
Revenue Next Year7.03%
Revenue Next 2Y7.36%
Revenue Next 3Y7.95%
Revenue Next 5YN/A
EBIT growth 1Y-26.96%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year27.97%
EBIT Next 3Y16.46%
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%