NYSE:TREX

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Trex Company has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Trex Company's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.1%

NYSE:TREX

0.4%

US Building

-0.7%

US Market


1 Year Return

5.8%

NYSE:TREX

-2.3%

US Building

-0.5%

US Market

TREX outperformed the Building industry which returned -1.9% over the past year.

TREX outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

TREXIndustryMarket
7 Day5.1%0.4%-0.7%
30 Day22.7%-0.5%-3.0%
90 Day45.2%3.4%0.9%
1 Year5.8%5.8%-0.7%-2.3%1.7%-0.5%
3 Year184.9%184.9%16.8%7.4%39.5%30.4%
5 Year368.1%368.1%39.3%21.9%54.1%37.0%

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

Valuation

Is Trex Company undervalued based on future cash flows and its price relative to the stock market?

41.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Trex Company's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Trex Company's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Trex Company is overvalued based on earnings compared to the US Building industry average.

Trex Company is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Trex Company is poor value based on expected growth next year.


Price Based on Value of Assets

Trex Company is overvalued based on assets compared to the US Building industry average.


Next Steps

Future Growth

How is Trex Company expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Trex Company's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

Trex Company's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).

Trex Company's revenue growth is expected to exceed the United States of America market average.

Trex Company's earnings growth is expected to exceed the United States of America market average.

Trex Company's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Trex Company is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Trex Company performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Trex Company has delivered over 20% year on year earnings growth in the past 5 years.

Trex Company's 1-year earnings growth is less than its 5-year average (3% vs 26.8%)

Trex Company's earnings growth has not exceeded the US Building industry average in the past year (3% vs 8.2%).


Return on Equity

Trex Company has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Trex Company used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Trex Company's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Trex Company's financial position?


Financial Position Analysis

Trex Company is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Trex Company's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Trex Company has no debt.

Trex Company has no debt compared to 5 years ago when it was 35.8%.

Trex Company has no debt, it does not need to be covered by operating cash flow.

Trex Company has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Trex Company has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Trex Company's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Trex Company's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Trex Company's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Trex Company has not reported any payouts.

Unable to verify if Trex Company's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Trex Company has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Trex Company's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Trex Company's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Jim Cline (67yo)

4.0yrs

Tenure

US$2,635,610

Compensation

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

Jim's remuneration is lower than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

51yo

Average Age

The tenure for the Trex Company management team is about average.


Board Age and Tenure

9.3yrs

Average Tenure

66yo

Average Age

The tenure for the Trex Company board of directors is about average.


Insider Trading

Trex Company individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$788,61208 Aug 19
Christopher Gerhard
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares9,724
Max PriceUS$81.10
SellUS$1,761,75126 Jun 19
Jay Scripter
EntityIndividual
Shares25,476
Max PriceUS$69.19
BuyUS$4,13804 Jan 19
Jay Scripter
EntityIndividual
Shares82
Max PriceUS$50.46
BuyUS$4,89102 Oct 18
Jay Scripter
EntityIndividual
Shares89
Max PriceUS$54.95
SellUS$249,91823 Aug 18
Christopher Gerhard
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares2,990
Max PriceUS$83.59

Ownership Breakdown


Management Team

  • John Lewis (53yo)

    President & CEO of Trex Commercial Products Inc

    • Tenure: 1.8yrs
  • Jim Cline (67yo)

    President

    • Tenure: 4.0yrs
    • Compensation: US$2.64m
  • William Gupp (59yo)

    Senior VP

    • Tenure: 18.3yrs
    • Compensation: US$1.24m
  • Adam Zambanini (42yo)

    President of Trex Residential Products

    • Tenure: 1.1yrs
    • Compensation: US$1.01m
  • Christopher Gerhard (46yo)

    Vice President of Sales

    • Tenure: 7.2yrs
    • Compensation: US$885.78k
  • Bryan Fairbanks (49yo)

    Executive VP & CFO

    • Tenure: 4.0yrs
    • Compensation: US$1.09m
  • Jacob Rudolph

    Vice President of Human Resources

    • Tenure: 2.3yrs
  • S. Adkins

    Vice President of Marketing

    • Tenure: 1.1yrs
  • Viktoriia Nakhla

    AdvisIRy Partner

    • Tenure: 0.0yrs

Board Members

  • Ron Kaplan (67yo)

    Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: US$180.00k
  • Jay Gratz (66yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$138.00k
  • Dick Posey (72yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$136.50k
  • Patricia Robinson (66yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$148.83k
  • Michael Golden (65yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$134.67k
  • Jerry Volas (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$134.50k
  • Jim Cline (67yo)

    President

    • Tenure: 4.0yrs
    • Compensation: US$2.64m

Company Information

Trex Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trex Company, Inc.
  • Ticker: TREX
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$5.010b
  • Shares outstanding: 58.42m
  • Website: https://www.trex.com

Number of Employees


Location

  • Trex Company, Inc.
  • 160 Exeter Drive
  • Winchester
  • Virginia
  • 22603
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TREXNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1999
TRRDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

Biography

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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:47
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.