Trex Company, Inc. manufactures and distributes wood and plastic composite products, and related accessories primarily for residential decking, and railing applications in the United States. More Details
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Trex Company's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TREX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TREX's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: TREX underperformed the US Building industry which returned 68.1% over the past year.
Return vs Market: TREX exceeded the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Trex Company's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall StTrex Company, Inc.'s (NYSE:TREX) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
2 weeks ago | Simply Wall StShould You Be Adding Trex Company (NYSE:TREX) To Your Watchlist Today?
1 month ago | Simply Wall StShould You Think About Buying Trex Company, Inc. (NYSE:TREX) Now?
Is Trex Company undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TREX ($97.1) is trading above our estimate of fair value ($44.9)
Significantly Below Fair Value: TREX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TREX is poor value based on its PE Ratio (61.8x) compared to the US Building industry average (23.6x).
PE vs Market: TREX is poor value based on its PE Ratio (61.8x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: TREX is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: TREX is overvalued based on its PB Ratio (19x) compared to the US Building industry average (2.7x).
How is Trex Company forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TREX's forecast earnings growth (16.3% per year) is above the savings rate (2%).
Earnings vs Market: TREX's earnings (16.3% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: TREX's earnings are forecast to grow, but not significantly.
Revenue vs Market: TREX's revenue (11.2% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: TREX's revenue (11.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TREX's Return on Equity is forecast to be high in 3 years time (30%)
How has Trex Company performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TREX has a high level of non-cash earnings.
Growing Profit Margin: TREX's current net profit margins (19.6%) are lower than last year (20.3%).
Past Earnings Growth Analysis
Earnings Trend: TREX's earnings have grown significantly by 22.4% per year over the past 5 years.
Accelerating Growth: TREX's earnings growth over the past year (16.8%) is below its 5-year average (22.4% per year).
Earnings vs Industry: TREX earnings growth over the past year (16.8%) underperformed the Building industry 26.4%.
Return on Equity
High ROE: TREX's Return on Equity (30.8%) is considered high.
How is Trex Company's financial position?
Financial Position Analysis
Short Term Liabilities: TREX's short term assets ($410.1M) exceed its short term liabilities ($235.6M).
Long Term Liabilities: TREX's short term assets ($410.1M) exceed its long term liabilities ($74.5M).
Debt to Equity History and Analysis
Debt Level: TREX's debt to equity ratio (23%) is considered satisfactory.
Reducing Debt: TREX's debt to equity ratio has reduced from 159.9% to 23% over the past 5 years.
Debt Coverage: TREX's debt is well covered by operating cash flow (112.9%).
Interest Coverage: TREX earns more interest than it pays, so coverage of interest payments is not a concern.
What is Trex Company current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TREX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TREX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TREX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TREX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TREX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bryan Fairbanks (51 yo)
Mr. Bryan Horix Fairbanks serves as President and Chief Executive Officer of Trex Company, Inc. since April 29, 2020. He serves as Director of Trex Company, Inc. since April 29, 2020. Mr. Fairbanks served ...
CEO Compensation Analysis
Compensation vs Market: Bryan's total compensation ($USD1.92M) is below average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Bryan's compensation has increased by more than 20% in the past year.
Experienced Management: TREX's management team is considered experienced (3 years average tenure).
Experienced Board: TREX's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TREX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Trex Company, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Trex Company, Inc.
- Ticker: TREX
- Exchange: NYSE
- Founded: 1996
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$11.202b
- Shares outstanding: 115.36m
- Website: https://www.trex.com
Number of Employees
- Trex Company, Inc.
- 160 Exeter Drive
- United States
Trex Company, Inc. manufactures and distributes wood and plastic composite products, and related accessories primarily for residential decking, and railing applications in the United States. It offers Trex...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/31 22:34|
|End of Day Share Price||2021/07/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.