TREX COMPANY INC (TREX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TREX - US89531P1057 - Common Stock
34.77 USD
+0.54 (+1.58%)
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. While TREX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TREX has a correct valuation and a medium 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.
In the past 5 years TREX has always been profitable.
In the past 5 years TREX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TREX (13.62%) is better than 82.93% of its industry peers.
TREX has a better Return On Equity (18.98%) than 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.07%, TREX belongs to the top of the industry, outperforming 80.49% 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 12.44%.
The last Return On Invested Capital (16.07%) 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 | 13.62% | ||
| ROE | 18.98% | ||
| ROIC | 16.07% |
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 Profit Margin of 16.76%. This is amongst the best in the industry. TREX outperforms 90.24% of its industry peers.
TREX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 23.50%, TREX belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
TREX's Operating Margin has been stable in the last couple of years.
TREX's Gross Margin of 39.69% is fine compared to the rest of the industry. TREX outperforms 75.61% of its industry peers.
TREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.5% | ||
| PM (TTM) | 16.76% | ||
| GM | 39.69% |
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.
TREX has less shares outstanding than it did 1 year ago.
TREX has less shares outstanding than it did 5 years ago.
TREX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.55 indicates that TREX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.55, TREX belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
TREX has a debt to FCF ratio of 10.60. This is a negative value and a sign of low solvency as TREX would need 10.60 years to pay back of all of its debts.
TREX's Debt to FCF ratio of 10.60 is on the low side compared to the rest of the industry. TREX is outperformed by 65.85% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TREX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.11, TREX is doing good in the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 8.55 |
ROIC/WACC1.7
WACC9.43%
2.3 Liquidity
TREX has a Current Ratio of 1.20. 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 1.20, TREX is doing worse than 85.37% of the companies in the same industry.
TREX has a Quick Ratio of 1.20. 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 0.67, TREX is not doing good in the industry: 90.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
TREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.42%.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
TREX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.42%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%37.84%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
3.2 Future
The Earnings Per Share is expected to grow by 11.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
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
A Price/Earnings ratio of 17.92 indicates a rather expensive valuation of TREX.
The rest of the industry has a similar Price/Earnings ratio as TREX.
TREX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
TREX is valuated correctly with a Price/Forward Earnings ratio of 13.67.
TREX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TREX is cheaper than 70.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TREX to the average of the S&P500 Index (35.40), we can say TREX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
TREX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TREX is cheaper than 60.98% of the companies in the same industry.
TREX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TREX is more expensive than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 355.15 | ||
| EV/EBITDA | 10.86 |
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)2.09
PEG (5Y)1.69
EPS Next 2Y10.58%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
No dividends for TREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TREX (12/5/2025, 2:11:05 PM)
34.77
+0.54 (+1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners109.04%
Inst Owner Change-2.43%
Ins Owners0.63%
Ins Owner Change6.5%
Market Cap3.73B
Revenue(TTM)1.18B
Net Income(TTM)197.88M
Analysts75
Price Target45.76 (31.61%)
Short Float %6.51%
Short Ratio2.51
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)1
Avg EPS beat(2)-5.54%
Min EPS beat(2)-11.93%
Max EPS beat(2)0.85%
EPS beat(4)3
Avg EPS beat(4)21.26%
Min EPS beat(4)-11.93%
Max EPS beat(4)95.34%
EPS beat(8)7
Avg EPS beat(8)14.34%
EPS beat(12)10
Avg EPS beat(12)9.07%
EPS beat(16)13
Avg EPS beat(16)8.58%
Revenue beat(2)1
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-6.93%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-6.93%
Max Revenue beat(4)2.48%
Revenue beat(8)4
Avg Revenue beat(8)-0.81%
Revenue beat(12)7
Avg Revenue beat(12)0.52%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-36.98%
PT rev (3m)-36.98%
EPS NQ rev (1m)-93.79%
EPS NQ rev (3m)-93.87%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-24.11%
Revenue NQ rev (3m)-24.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 13.67 | ||
| P/S | 3.16 | ||
| P/FCF | 355.15 | ||
| P/OCF | 13.12 | ||
| P/B | 3.58 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)1.94
EY5.58%
EPS(NY)2.54
Fwd EY7.31%
FCF(TTM)0.1
FCFY0.28%
OCF(TTM)2.65
OCFY7.62%
SpS11.01
BVpS9.72
TBVpS9.44
PEG (NY)2.09
PEG (5Y)1.69
Graham Number20.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 18.98% | ||
| ROCE | 23.71% | ||
| ROIC | 16.07% | ||
| ROICexc | 16.21% | ||
| ROICexgc | 16.61% | ||
| OM | 23.5% | ||
| PM (TTM) | 16.76% | ||
| GM | 39.69% | ||
| FCFM | 0.89% |
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%
ROICexgc growth 3Y-18.02%
ROICexgc 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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 10.6 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 459.77% | ||
| Cap/Sales | 23.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.31% | ||
| Profit Quality | 5.31% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 8.55 |
F-Score5
WACC9.43%
ROIC/WACC1.7
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)-11.42%
EPS 3Y-1.7%
EPS 5Y10.63%
EPS Q2Q%37.84%
EPS Next Y8.58%
EPS Next 2Y10.58%
EPS Next 3Y11.08%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.28%
Revenue growth 5Y9.09%
Sales Q2Q%22.09%
Revenue Next Year7.37%
Revenue Next 2Y7.36%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y-12.82%
EBIT growth 3Y-1.61%
EBIT growth 5Y10.19%
EBIT Next Year28.51%
EBIT Next 3Y16.36%
EBIT Next 5YN/A
FCF growth 1Y-86.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.27%
OCF growth 3Y-17.69%
OCF growth 5Y-1.65%
TREX COMPANY INC / TREX FAQ
Can you provide the ChartMill fundamental rating for TREX COMPANY INC?
ChartMill assigns a fundamental rating of 5 / 10 to TREX.
What is the valuation status of TREX COMPANY INC (TREX) stock?
ChartMill assigns a valuation rating of 4 / 10 to TREX COMPANY INC (TREX). This can be considered as Fairly Valued.
What is the profitability of TREX stock?
TREX COMPANY INC (TREX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TREX COMPANY INC (TREX) stock?
The Price/Earnings (PE) ratio for TREX COMPANY INC (TREX) is 17.92 and the Price/Book (PB) ratio is 3.58.
How financially healthy is TREX COMPANY INC?
The financial health rating of TREX COMPANY INC (TREX) is 4 / 10.