Trex Company, Inc.

$ 47.13 3.70 %

Trex Company, Inc. is a leading U.S. manufacturer and distributor specializing in outdoor living products for both residential and commercial applications. The company's operations are segmented into Trex Residential and Trex Commercial. For its residential clientele, Trex offers a diverse selection of composite decking under names like Trex Transcend, Trex Select, and Trex Enhance, designed for superior resistance against fading, staining, mold, and scratching. Complementing these are the Trex Hideaway hidden fastening system and Trex DeckLighting, which provides dimmable LED lighting for various deck elements. Trex also provides a range of railing systems, including the versatile Trex Transcend Railing, the sleek Trex Select Railing, the Trex Enhance Railing system, and the modern Trex Signature aluminum railing. Furthermore, their residential offerings extend to Trex Seclusions, a comprehensive fencing solution complete with structural components and decorative post caps. In the commercial sector, Trex designs and engineers advanced architectural and aluminum railing systems, alongside staging equipment and accessories. These products cater to a wide array of projects, from general commercial developments to specialized venues like sports stadiums and performing arts centers. Beyond its core manufacturing, Trex extends its brand influence through licensing agreements, enabling third parties to produce and market a variety of Trex-branded outdoor lifestyle products. This portfolio includes items such as Trex Outdoor Furniture, the Trex RainEscape above-joist deck drainage system, Trex Pergola, Trex Latticeworks, Trex Cornhole boards, the specialized Diablo Trex Blade for composite decking, Trex SpiralStairs, and Trex Outdoor Kitchens, Cabinetry, and Storage solutions. Trex employs a multi-channel distribution strategy, selling its products through wholesale distributors, independent retail lumber dealers, and major home improvement chains like Home Depot and Lowe's. The company also leverages its direct sales force, works with independent sales representatives, and actively bids on various projects. Established in 1996, Trex Company, Inc. is headquartered in Winchester, Virginia.

CEO: Bryan Horix Fairbanks - https://www.trex.com

Price objectif

$48.43 2.76 %

Recommandation

Hold

DCF

$ 7.82

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TREX vs S&P500

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Quick ratio

0.62

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

26.18

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

1.80

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

18.85 %

reflects reasonable profitability, showing good use of equity.

ROIC

12.28 %

generates a return higher than the cost of its capital, thereby creating value for its investors.

WACC

10.99

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.44

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

2.28

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

0.00 %

the dividend payout ratio is the measure of dividends paid out to shareholders relative to the company's net income.

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
6.69 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.01 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.25 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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