A Business at a Glance
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TREX CO INC
TREX
$4.6B
Mkt Cap
$43.43
+2.48%
TREX CO INC (TREX) has a current P/E ratio of 23.5, 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 $4.5B. 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 2.95%.
Based on historical P/E analysis, TREX CO INC (TREX) appears fair. The current P/E of 23.5 is 31% below its historical median of 34.0. The estimated fair value CAGR (P/E method) is 7.5%.
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 Company is the world's largest manufacturer of composite decking and railing products, marketed under the Trex® brand and manufactured in the United States. The company operates a single reportable segment producing high-performance, low-maintenance, eco-friendly wood-alternative composite decking and railing, along with complementary outdoor living products including fencing, cladding, fasteners, and outdoor lighting. Trex's composite products are made through a proprietary process combining reclaimed wood fibers and recycled polyethylene film, positioning the company as one of North America's largest recyclers of waste polyethylene plastic film. The company distributes its products through a network of more than 6,700 retail locations worldwide, selling primarily to distributors and home centers for resale to the residential market, with a strong presence in both the pro-channel dealer network and major home improvement retailers. Trex's competitive moat is built on brand strength—consistently the leading brand in both unaided and aided brand recognition—combined with proprietary manufacturing expertise, an extensive distribution network, and a comprehensive product portfolio spanning multiple price points from the premium Transcend Lineage and Signature lines to the value-oriented Enhance and Select offerings. The company targets homeowners seeking to convert from wood decking to composite alternatives, leveraging sustainability, durability, and low-maintenance characteristics as key value propositions in the large and expanding outdoor living market.
【Innovation and railing expansion】 Management is focused on developing a disciplined innovation pipeline around decking with "separator technology" designed to create highly differentiated performance and establish Trex in a category of one, while executing a strategic railing initiative with a target to double the railing business within five years. The company expects the distribution landscape to continue evolving and aims to maintain strong channel relationships across both the two-step channel and home center retailers to reach homeowners and pro-contractors across geographies. Railing currently operates at lower margins than decking due to greater manufacturing complexity and broader raw material components, but management expects natural margin expansion over time as the product line grows and achieves economies of scale, with railing margins potentially approaching core decking levels. Management is investing in technology and organizational capability, including adding a Chief Commercial Officer role to integrate sales, marketing, and IT functions, and implementing a more nuanced portfolio-level pricing strategy to balance share and margin while improving responsiveness to market conditions.
| Metric | Target | Period |
|---|---|---|
| Net sales | $1.185 billion to $1.23 billion | FY2026 |
| Adjusted gross margin | approximately 37.5% | FY2026 |
| Adjusted EBITDA | $315 million to $340 million | FY2026 |
| Net sales | $388 million to $403 million | Q2 FY2026 |
| Capital expenditures | $100 million to $120 million | FY2026 |
| Interest expense | $10 million to $12 million | FY2026 |
| Depreciation and amortization | approximately $85 million | FY2026 |
| Effective tax rate | approximately 25.5% to 27% | FY2026 |
| Net sales | $335 million to $345 million | Q1 FY2026 |
Net sales (FY2026): “we continue to expect fiscal year net sales of $1.185 billion to $1.23 billion”
Adjusted gross margin (FY2026): “adjusted gross margin of approximately 37.5%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.2B | 1.1B | 1.1B | 1.2B |
| Net Income | 191M | 190M | 238M | 204M | 185M | 209M |
| EPS | $1.80 | $1.78 | $2.20 | $1.88 | $1.65 | $1.80 |
| Free Cash Flow | 226M | 135M | -88M | 223M | 40M | 99M |
| ROIC | 19.3% | 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 | 0.00 | 0.05 | 0.45 | 0.77 | 0.66 | 0.46 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 260M | 258M | 322M | 275M | 247M | 275M |
| Operating Margin | 22.1% | 22.0% | 28.0% | 25.1% | 22.3% | 23.0% |
| ROE | 19.2% | 19.8% | 29.3% | 31.7% | 29.1% | 31.8% |
| Shares Outstanding | 104M | 107M | 108M | 109M | 112M | 116M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 392M | 441M | 480M | 565M | 684M | 745M | 881M | 1.2B | 1.1B | 1.1B | 1.2B | 1.2B | 1.2B |
| Gross Margin | 35.8% | 35.1% | 39.0% | 43.1% | 43.1% | 41.1% | 40.8% | 38.5% | 36.5% | 41.2% | 43.6% | 39.2% | 39.2% |
| R&D | 2.3M | 1.5M | 3.7M | 3.8M | 4.5M | 3.4M | 3.4M | 6.0M | 500K | 3.3M | 3.5M | 4.2M | 4.2M |
| SG&A | 72M | 77M | 83M | 101M | 118M | 118M | 126M | 140M | 142M | 176M | 180M | 202M | 201M |
| EBIT | 68M | 77M | 104M | 142M | 177M | 188M | 234M | 275M | 247M | 275M | 322M | 258M | 260M |
| Op. Margin | 17.3% | 17.6% | 21.7% | 25.2% | 25.8% | 25.2% | 26.5% | 23.0% | 22.3% | 25.1% | 28.0% | 22.0% | 22.1% |
| Net Income | 42M | 48M | 68M | 95M | 135M | 145M | 176M | 209M | 185M | 204M | 238M | 190M | 191M |
| Net Margin | 10.6% | 10.9% | 14.1% | 16.8% | 19.7% | 19.4% | 19.9% | 17.4% | 16.7% | 18.6% | 20.7% | 16.2% | 16.3% |
| Non-Recurring | 1.3M | -444K | 270K | -1.7M | -47K | -285K | 56K | 54M | 27K | -3.1M | -2.6M | -522K | -522K |
| Returns on Capital | |||||||||||||
| ROIC | 40.7% | 43.8% | 31.7% | 26.6% | 32.1% | 29.3% | 26.9% | 24.8% | 20.8% | 18.8% | 18.6% | 16.4% | 19.3% |
| ROE | 37.7% | 41.9% | 54.1% | 52.1% | 46.9% | 36.5% | 33.8% | 31.8% | 29.1% | 31.7% | 29.3% | 19.8% | 19.2% |
| ROA | 21.6% | 23.6% | 31.3% | 34.7% | 34.0% | 27.4% | 25.8% | 24.7% | 19.9% | 21.9% | 20.7% | 13.5% | 11.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 59M | 63M | 85M | 102M | 138M | 156M | 187M | 258M | 216M | 389M | 144M | 358M | 394M |
| Free Cash Flow | 46M | 39M | 71M | 87M | 104M | 89M | 14M | 99M | 40M | 223M | -88M | 135M | 226M |
| Owner Earnings | 39M | 43M | 66M | 80M | 115M | 135M | 162M | 214M | 167M | 329M | 77M | 286M | 317M |
| CapEx | 13M | 23M | 15M | 15M | 34M | 67M | 173M | 159M | 176M | 166M | 232M | 224M | 167M |
| Maint. CapEx | 15M | 14M | 14M | 17M | 17M | 14M | 18M | 36M | 44M | 50M | 55M | 63M | 67M |
| Growth CapEx | 0 | 8.9M | 53K | 0 | 17M | 53M | 155M | 123M | 132M | 116M | 178M | 161M | 100M |
| D&A | 15M | 14M | 14M | 17M | 17M | 14M | 18M | 36M | 44M | 50M | 55M | 63M | 67M |
| CapEx/OCF | 22.1% | 37.3% | 17.1% | 14.8% | 24.5% | 43.0% | 92.3% | 61.8% | 81.5% | 42.7% | 161.4% | N/A | 42.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 53M | 53M | 55M | 3.6M | 30M | 47M | 45M | 82M | 398M | 18M | 106M | 54M | 133M |
| Buyback Yield | 3.8% | 4.5% | 2.8% | 0.1% | 0.9% | 0.9% | 0.5% | 0.5% | 8.7% | 0.2% | 1.4% | 0.0% | 3.0% |
| Stock-Based Comp | 4.8M | 4.9M | 4.8M | 5.2M | 6.3M | 6.9M | 7.1M | 8.4M | 5.3M | 10M | 13M | 9.1M | 9.4M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | 1.0M | 181M | 169M | 94M | 92M | 214M | 194M | 347M | 569M | 399M | 50M | -4.5M |
| Cash & Equiv. | 9.5M | 6.0M | 19M | 31M | 106M | 149M | 122M | 141M | 12M | 2.0M | 1.3M | 3.8M | 4.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.73 | 0.06 | 1.49 | 0.86 | 0.58 | 0.54 | 0.57 | 0.46 | 0.66 | 0.77 | 0.45 | 0.05 | 0.00 |
| Interest Coverage | 77.3 | 125.1 | 92.4 | 308.9 | 920.2 | 125.2 | 233.9 | 18358.4 | N/A | 3520.4 | N/A | N/A | N/A |
| Equity | 113M | 116M | 134M | 231M | 343M | 449M | 589M | 725M | 545M | 742M | 887M | 1.0B | 996M |
| Total Assets | 196M | 212M | 221M | 326M | 465M | 592M | 770M | 920M | 934M | 933M | 1.4B | 1.5B | 1.7B |
| Total Liabilities | 82M | 96M | 87M | 95M | 122M | 143M | 182M | 195M | 415M | 216M | 487M | 419M | 734M |
| Intangibles | 34K | 26K | 0 | 2.9M | 6.0M | 5.6M | 5.2M | 4.8M | 12M | 12M | 7.8M | 17M | 10M |
| Retained Earnings | 71M | 119M | 187M | 282M | 417M | 562M | 737M | 946M | 1.1B | 1.3B | 1.6B | 1.8B | 1.9B |
| Working Capital | 36M | 39M | 54M | 86M | 177M | 225M | 216M | 312M | -3.8M | 81M | 26M | 60M | 14M |
| Current Assets | 85M | 99M | 106M | 149M | 270M | 303M | 322M | 401M | 287M | 172M | 369M | 310M | 580M |
| Current Liabilities | 49M | 60M | 51M | 63M | 93M | 79M | 106M | 89M | 291M | 91M | 342M | 251M | 566M |
| Per Share Data | |||||||||||||
| EPS | 0.32 | 0.38 | 0.58 | 0.40 | 1.15 | 0.62 | 1.51 | 1.80 | 1.65 | 1.88 | 2.20 | 1.78 | 1.80 |
| Owner EPS | 0.30 | 0.34 | 0.56 | 0.34 | 0.98 | 0.58 | 1.39 | 1.84 | 1.49 | 3.03 | 0.71 | 2.67 | 3.05 |
| Book Value | 0.87 | 0.92 | 1.14 | 0.98 | 2.93 | 1.92 | 5.06 | 6.25 | 4.87 | 6.83 | 8.18 | 9.67 | 9.58 |
| Cash Flow/Share | 0.45 | 0.49 | 0.73 | 0.43 | 1.18 | 0.67 | 1.61 | 2.23 | 1.93 | 3.59 | 1.33 | 3.35 | 2.49 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 130.8M | 126.6M | 117.6M | 236.3M | 117.1M | 233.4M | 116.3M | 116.0M | 111.9M | 108.6M | 108.4M | 107.0M | 103.9M |
| Valuation | |||||||||||||
| P/E Ratio | 33.5 | 24.7 | 28.8 | 34.0 | 25.5 | 36.5 | 55.3 | 74.9 | 24.7 | 44.3 | 32.0 | N/A | 24.1 |
| P/FCF | 30.5 | 30.2 | 27.4 | 74.6 | 32.6 | 118.5 | 671.6 | 158.4 | 113.8 | 40.7 | N/A | N/A | 19.9 |
| EV/EBIT | N/A | 15.3 | 18.4 | N/A | N/A | N/A | N/A | N/A | 19.3 | 32.9 | 24.3 | N/A | 17.4 |
| Price/Book | 12.3 | 10.2 | 14.6 | 14.0 | 10.0 | 11.7 | 16.5 | 21.6 | 8.8 | 12.7 | 8.6 | N/A | 4.5 |
| Price/Sales | 3.0 | 3.2 | 3.1 | 4.1 | 5.4 | 6.0 | 8.1 | 10.1 | 6.4 | 6.0 | 7.5 | N/A | 3.8 |
| FCF Yield | 3.3% | 3.3% | 3.6% | 2.7% | 3.0% | 1.7% | 0.1% | 0.6% | 0.9% | 2.5% | -1.2% | N/A | 5.0% |
| Market Cap | 1.4B | 1.2B | 2.0B | 3.2B | 3.4B | 5.3B | 9.7B | 15.6B | 4.6B | 9.1B | 7.6B | 0 | 4.5B |
| Avg. Price | 8.93 | 11.16 | 12.60 | 19.60 | 31.56 | 38.23 | 61.23 | 104.36 | 63.23 | 60.08 | 79.25 | 0.00 | 43.43 |
| Year-End Price | 10.64 | 9.39 | 16.48 | 27.40 | 29.08 | 45.21 | 83.56 | 134.74 | 40.69 | 83.72 | 70.30 | 0.00 | 43.43 |
TREX CO INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
TREX CO INC trades at 23.5x 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 201.8x 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 3.0%. At current prices, the estimated annualized return to fair value is +0.3%.
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.
Based on recent SEC filings and earnings disclosures, Management is focused on developing a disciplined innovation pipeline around decking with "separator technology" designed to create highly differentiated performance and establish Trex in a category of one, while executing a strategic railing initiative with a target to double the railing business within five years. The company expects the distribution landscape to continue evolving and aims to maintain strong channel relationships across both the two-step channel and home center retailers to reach homeowners and pro-contractors across geographies. Railing currently operates at lower margins than decking due to greater manufacturing complexity and broader raw material components, but management expects natural margin expansion over time as the product line grows and achieves economies of scale, with railing margins potentially approaching core decking levels. Management is investing in technology and organizational capability, including adding a Chief Commercial Officer role to integrate sales, marketing, and IT functions, and implementing a more nuanced portfolio-level pricing strategy to balance share and margin while improving responsiveness to market conditions.
Based on recent SEC filings and earnings calls, TREX CO INC (TREX) has provided the following forward guidance: Net sales: $1.185 billion to $1.23 billion (FY2026); Adjusted gross margin: approximately 37.5% (FY2026); Adjusted EBITDA: $315 million to $340 million (FY2026); Net sales: $388 million to $403 million (Q2 FY2026); Capital expenditures: $100 million to $120 million (FY2026), plus 4 additional metrics.
Adjusted EBITDA (FY2026): “adjusted EBITDA of $315 million to $340 million”
Net sales (Q2 FY2026): “For the second quarter, we expect net sales in the range of $388 million to $403 million”
Capital expenditures (FY2026): “We anticipate total CapEx this year of $100 million to $120 million”
Interest expense (FY2026): “Interest expense is expected to be $10 million to $12 million”
Depreciation and amortization (FY2026): “Depreciation and amortization of approximately $85 million”
Effective tax rate (FY2026): “We are projecting an effective tax rate of approximately 25.5% to 27% for the full year”
No recent press releases.