Trex Company, Inc. manufactures and distributes wood/plastic composite products, and related accessories primarily for the residential and commercial decking, and railing applications in the United States.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: TREX exceeded the US Building industry which returned 23.2% over the past year.
Return vs Market: TREX exceeded the US Market which returned 17.9% over the past year.
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
5 days ago | Simply Wall StDoes Trex Company, Inc.'s (NYSE:TREX) CEO Pay Matter?
2 weeks ago | Simply Wall StTrex Company, Inc. (NYSE:TREX) Delivered A Better ROE Than Its Industry
1 month ago | Simply Wall StIs Now The Time To Put Trex Company (NYSE:TREX) On Your Watchlist?
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 ($106.29) is trading above our estimate of fair value ($77.98)
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 (46.3x) compared to the Building industry average (23x).
PE vs Market: TREX is poor value based on its PE Ratio (46.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: TREX is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: TREX is overvalued based on its PB Ratio (14.6x) compared to the US Building industry average (2.6x).
How is Trex Company forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TREX's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).
Earnings vs Market: TREX's earnings (16.6% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: TREX's earnings are forecast to grow, but not significantly.
Revenue vs Market: TREX's revenue (10.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: TREX's revenue (10.2% 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 (29.7%)
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 (18.7%) are lower than last year (19.2%).
Past Earnings Growth Analysis
Earnings Trend: TREX's earnings have grown significantly by 25.3% per year over the past 5 years.
Accelerating Growth: TREX's earnings growth over the past year (5.3%) is below its 5-year average (25.3% per year).
Earnings vs Industry: TREX earnings growth over the past year (5.3%) exceeded the Building industry -15.5%.
Return on Equity
High ROE: TREX's Return on Equity (31.7%) is considered high.
Return on Assets
Return on Capital Employed
How is Trex Company's financial position?
Financial Position Analysis
Short Term Liabilities: TREX's short term assets ($307.8M) exceed its short term liabilities ($87.5M).
Long Term Liabilities: TREX's short term assets ($307.8M) exceed its long term liabilities ($59.7M).
Debt to Equity History and Analysis
Debt Level: TREX is debt free.
Reducing Debt: TREX has no debt compared to 5 years ago when its debt to equity ratio was 2.8%.
Debt Coverage: TREX has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TREX has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: TREX has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if TREX's debt is covered by short term assets.
What is Trex Company's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TREX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate TREX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TREX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TREX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TREX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Cline (67yo)
Mr. James E. Cline, also known as Jim, serves as Non-Executive Director at Latham Pool Products since July 2019. Mr. Cline has been the President and Chief Executive Officer of Trex Co. Inc. since August 1 ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD2.64M) is below average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||4.5yrs||US$1.09m||0.035% $2.2m|
|Senior VP||18.8yrs||US$1.24m||0.070% $4.3m|
|President of Trex Residential Products||1.6yrs||US$1.01m||0.11% $6.8m|
|Vice President of Sales||7.7yrs||US$885.78k||0.021% $1.3m|
|Vice President of Marketing||1.6yrs||no data||no data|
|Vice President of Human Resources||2.8yrs||no data||no data|
|AdvisIRy Partner||0yrs||no data||no data|
Experienced Management: TREX's management team is considered experienced (4.5 years average tenure).
|Chairman of the Board||9.8yrs||US$180.00k||0.0085% $528.3k|
|Independent Director||13yrs||US$138.00k||0.021% $1.3m|
|Independent Director||10.8yrs||US$136.50k||0.026% $1.6m|
|Lead Independent Director||0yrs||US$148.83k||0.056% $3.5m|
|Independent Director||7yrs||US$134.67k||0.0081% $500.4k|
|Independent Director||5.9yrs||US$134.50k||0.014% $896.6k|
|Director||0.3yrs||no data||0.0013% $78.7k|
Experienced Board: TREX's board of directors are considered experienced (7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$6.201b
- Shares outstanding: 58.34m
- Website: https://www.trex.com
Number of Employees
- Trex Company, Inc.
- 160 Exeter Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TREX||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Apr 1999|
|TRR||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Apr 1999|
Trex Company, Inc. manufactures and distributes wood/plastic composite products, and related accessories primarily for the residential and commercial decking, and railing applications in the United States. It offers Trex Transcend, Trex Enhance, and Trex Select protective shells for protection against fading, staining, mold, and scratching; and Trex Hideaway, a hidden fastening system for grooved boards. The company also provides railing products, such as Trex Transcend Railing for use with Trex decking products and other decking materials; Trex Select Railing for simple clean finished look; and Trex Signature aluminum railing for contemporary look. In addition, it offers Trex Seclusions fencing product, which includes structural posts, bottom and top rails, pickets, and decorative post caps; steel deck framing systems under the Trex Elevations name; Trex DeckLighting, a line of energy-efficient LED dimmable deck lighting for use on posts, floors, and steps; and Trex LandscapeLighting products. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex CustomCurve that allows contractors to heat and bend Trex products; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-plastic composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, Cabinetry, and Storage. Additionally, it offers architectural and aluminum railing systems, custom railing options, and portable stage platforms. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. The company was founded in 1996 and is headquartered in Winchester, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 00:53|
|End of Day Share Price||2020/02/21 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.