A Business at a Glance
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Item 1. Business Trex Company, Inc. (Trex, Company, we, us or our), was incorporated as a Delaware corporation in 1998. The Company is the world’s largest manufacturer of composite decking and railing products, which are marketed under the brand name Trex® and manufactured in the United States. Our principal executive offices are located at 2500 Trex Way, Winchester, Virginia 22601, and our telephone number at that address is (540) 542-6300. Business and Growth Strategies More than 30 years ago, Trex invented the composite decking category. Today, Trex continues to reinvent and redefine outdoor living with a commitment to innovation and growth that has made Trex the world’s #1 brand of sustainably made wood-alternative decking and deck railing, along with a comprehensive portfolio of sustainable, high performance, low-maintenance outdoor living products including fencing, cladding, fasteners, and outdoor lighting.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.2B | 1.1B | 1.1B | 1.2B |
| Net Income | 190M | 190M | 238M | 204M | 185M | 209M |
| EPS | $1.78 | $1.78 | $2.20 | $1.88 | $1.65 | $1.80 |
| Free Cash Flow | 135M | 135M | -88M | 223M | 40M | 99M |
| ROIC | 17.6% | 16.4% | 18.6% | 18.8% | 20.8% | 24.8% |
| Gross Margin | 39.2% | 39.2% | 43.6% | 41.2% | 36.5% | 38.5% |
| Debt/Equity | 0.05 | 0.05 | 0.45 | 0.77 | 0.66 | 0.46 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 258M | 258M | 322M | 275M | 247M | 275M |
| Operating Margin | 22.0% | 22.0% | 28.0% | 25.1% | 22.3% | 23.0% |
| ROE | 18.4% | 19.8% | 29.3% | 31.7% | 29.1% | 31.8% |
| Shares Outstanding | 107M | 107M | 108M | 109M | 112M | 116M |
TREX CO INC passes 3 of 9 quality checks, indicating weak fundamentals.
TREX CO INC trades at 21.9x trailing earnings, compared to its 15-year median P/E of 34.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 188.2x vs a median of 36.7x. The company's 5-year average ROIC is 19.9% with a gross margin of 39.8%. Total shareholder yield (buybacks) is 1.3%. At current prices, the estimated annualized return to fair value is -0.6%.
TREX CO INC (TREX) has a current P/E ratio of 21.9, compared to its historical median P/E of 34.0. The stock is currently considered Fair based on its historical valuation range.
TREX CO INC (TREX) has a 5-year average return on invested capital (ROIC) of 19.9%. This indicates strong capital allocation and a potential competitive advantage.
TREX CO INC (TREX) has a market capitalization of $4.3B. It is classified as a mid-cap stock.
TREX CO INC (TREX) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.26%.
Based on historical P/E analysis, TREX CO INC (TREX) appears fair. The current P/E of 21.9 is 36% below its historical median of 34.0. The estimated fair value CAGR (P/E method) is 8.8%.
TREX CO INC (TREX) operates in the Lumber & Wood Products (No Furniture) industry, within the Materials sector.
TREX CO INC (TREX) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
TREX CO INC (TREX) has a net profit margin of 16.2%. This is a healthy margin.
TREX CO INC (TREX) generated $135 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TREX CO INC (TREX) has a debt-to-equity ratio of 0.05. This indicates a conservatively financed balance sheet.
TREX CO INC (TREX) reported earnings per share (EPS) of $1.78 in its most recent fiscal year.
TREX CO INC (TREX) has a return on equity (ROE) of 19.8%. This indicates the company generates strong returns for shareholders.
TREX CO INC (TREX) has a 5-year average gross margin of 39.8%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for TREX CO INC (TREX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TREX CO INC (TREX) has a book value per share of $9.67, based on its most recent annual SEC filing.
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