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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.28
TREX's Cash to Debt is ranked higher than
81% of the 759 Companies
in the Global Building Materials industry.

( Industry Median: 0.37 vs. TREX: 1.28 )
TREX' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 1.28

Equity to Asset 0.58
TREX's Equity to Asset is ranked higher than
75% of the 735 Companies
in the Global Building Materials industry.

( Industry Median: 0.51 vs. TREX: 0.58 )
TREX' s 10-Year Equity to Asset Range
Min: 0.29   Max: 0.7
Current: 0.58

0.29
0.7
Interest Coverage 40.95
TREX's Interest Coverage is ranked higher than
75% of the 460 Companies
in the Global Building Materials industry.

( Industry Median: 13.67 vs. TREX: 40.95 )
TREX' s 10-Year Interest Coverage Range
Min: 0.13   Max: 40.95
Current: 40.95

0.13
40.95
F-Score: 7
Z-Score: 13.97
M-Score: -1.56
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 16.63
TREX's Operating margin (%) is ranked higher than
91% of the 769 Companies
in the Global Building Materials industry.

( Industry Median: 6.80 vs. TREX: 16.63 )
TREX' s 10-Year Operating margin (%) Range
Min: -24.32   Max: 28.8
Current: 16.63

-24.32
28.8
Net-margin (%) 13.50
TREX's Net-margin (%) is ranked higher than
92% of the 769 Companies
in the Global Building Materials industry.

( Industry Median: 4.11 vs. TREX: 13.50 )
TREX' s 10-Year Net-margin (%) Range
Min: -23.08   Max: 18.16
Current: 13.5

-23.08
18.16
ROE (%) 48.60
TREX's ROE (%) is ranked higher than
99% of the 758 Companies
in the Global Building Materials industry.

( Industry Median: 7.59 vs. TREX: 48.60 )
TREX' s 10-Year ROE (%) Range
Min: -57.63   Max: 37
Current: 48.6

-57.63
37
ROA (%) 24.91
TREX's ROA (%) is ranked higher than
99% of the 770 Companies
in the Global Building Materials industry.

( Industry Median: 3.49 vs. TREX: 24.91 )
TREX' s 10-Year ROA (%) Range
Min: -22.29   Max: 19.4
Current: 24.91

-22.29
19.4
ROC (Joel Greenblatt) (%) 43.85
TREX's ROC (Joel Greenblatt) (%) is ranked higher than
97% of the 769 Companies
in the Global Building Materials industry.

( Industry Median: 11.48 vs. TREX: 43.85 )
TREX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.06   Max: 69.59
Current: 43.85

-30.06
69.59
Revenue Growth (3Y)(%) -1.50
TREX's Revenue Growth (3Y)(%) is ranked higher than
55% of the 682 Companies
in the Global Building Materials industry.

( Industry Median: 4.90 vs. TREX: -1.50 )
TREX' s 10-Year Revenue Growth (3Y)(%) Range
Min: -7.3   Max: 27.6
Current: -1.5

-7.3
27.6
EBITDA Growth (3Y)(%) 11.90
TREX's EBITDA Growth (3Y)(%) is ranked higher than
77% of the 605 Companies
in the Global Building Materials industry.

( Industry Median: 2.90 vs. TREX: 11.90 )
TREX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -25.4   Max: 30.8
Current: 11.9

-25.4
30.8
» TREX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

TREX Guru Trades in Q4 2013

Paul Tudor Jones 3,337 sh (New)
Steven Cohen 2,645 sh (New)
James Barrow 1,200,777 sh (-1.56%)
Jim Simons 95,700 sh (-21.04%)
Chuck Royce 33,600 sh (-42.56%)
» More
Q1 2014

TREX Guru Trades in Q1 2014

Ron Baron 94,672 sh (New)
Jim Simons 153,202 sh (+60.09%)
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
James Barrow 1,162,855 sh (-3.16%)
Chuck Royce 25,700 sh (-23.51%)
» More
Q2 2014

TREX Guru Trades in Q2 2014

Ron Baron 1,917,874 sh (+912.9%)
Chuck Royce 51,400 sh (unchged)
James Barrow 2,245,370 sh (-3.45%)
Jim Simons 21,600 sh (-92.95%)
» More
Q3 2014

TREX Guru Trades in Q3 2014

PRIMECAP Management 183,337 sh (New)
Joel Greenblatt 20,886 sh (New)
Jim Simons 93,700 sh (+333.8%)
Ron Baron 1,927,874 sh (+0.52%)
Chuck Royce 51,400 sh (unchged)
James Barrow 2,179,500 sh (-2.93%)
» More
» Details

Insider Trades

Latest Guru Trades with TREX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-09-30 New Buy0.01%$26.44 - $38.77 $ 41.5223%20886
PRIMECAP Management 2014-09-30 New Buy0.01%$26.44 - $38.77 $ 41.5223%183337
Ron Baron 2014-06-30 Add 912.9%0.2%$28.56 - $40.06 $ 41.5222%1917874
Ron Baron 2014-03-31 New Buy0.03%$63.35 - $82.58 $ 41.52-42%94672
Joel Greenblatt 2013-09-30 Sold Out 0.08%$21.06 - $25.72 $ 41.5279%0
Joel Greenblatt 2012-12-31 Reduce -38.34%0.06%$16.5 - $20.38 $ 41.52123%40662
Joel Greenblatt 2012-12-31 Reduce -38.34%0.06%$16.5 - $20.38 $ 41.52123%40662
Joel Greenblatt 2012-09-30 New Buy0.15%$12.47 - $17.1 $ 41.52177%65944
Joel Greenblatt 2012-03-31 Sold Out 0.11%$11.49 - $16.26 $ 41.52231%0
Ron Baron 2011-12-31 Sold Out 0.07%$7.46 - $11.78 $ 41.52319%0
Joel Greenblatt 2011-12-31 Add 33.92%0.03%$7.46 - $11.78 $ 41.52319%41502
Joel Greenblatt 2011-09-30 Add 32.96%0.02%$7.9 - $12.66 $ 41.52335%30991
James Barrow 2011-09-30 Add 68.4%0.02%$7.9 - $12.66 $ 41.52335%1296225
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

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Guru Investment Theses on Trex Co Inc

Ron Baron Comments on Trex Co Inc - Jul 28, 2014

Trex Company, Inc. (TREX) is the largest and lowest cost manufacturer of composite decking and railing in the U.S. – a category Trex pioneered in the 1990s – with 40% market share. 90% of sales stem from repair and replacement and 10% from new construction. Management, whom we respect, estimates that there are 40 million wood decks in the U.S. that will eventually rot, a significant portion of which will be replaced with composite decks. Composite represents approximately 11% of the total industry, up from 1% in 1999, with the remainder mostly wood. Consumers have opted to convert from wood to composite because composite looks similar, but performs better (doesn’t stain, rot or splinter). Trex is well positioned to benefit from this replacement demand. In addition, Trex has been growing its market share through new products and distribution wins and by expanding internationally. Trex also has recycling expertise, which it may apply to new industries in the future. (David Kirshenbaum)

From Ron Baron (Trades, Portfolio)’s Baron Funds Second Quarter 2014 Report.

Check out Ron Baron latest stock trades

Top Ranked Articles about Trex Co Inc

Ron Baron Comments on Trex Co Inc
Trex Company, Inc. (TREX) is the largest and lowest cost manufacturer of composite decking and railing in the U.S. – a category Trex pioneered in the 1990s – with 40% market share. 90% of sales stem from repair and replacement and 10% from new construction. Management, whom we respect, estimates that there are 40 million wood decks in the U.S. that will eventually rot, a significant portion of which will be replaced with composite decks. Composite represents approximately 11% of the total industry, up from 1% in 1999, with the remainder mostly wood. Consumers have opted to convert from wood to composite because composite looks similar, but performs better (doesn’t stain, rot or splinter). Trex is well positioned to benefit from this replacement demand. In addition, Trex has been growing its market share through new products and distribution wins and by expanding internationally. Trex also has recycling expertise, which it may apply to new industries in the future. (David Kirshenbaum) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 26.70
TREX's P/E(ttm) is ranked higher than
66% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 24.40 vs. TREX: 26.70 )
TREX' s 10-Year P/E(ttm) Range
Min: 18.31   Max: 3905
Current: 26.7

18.31
3905
P/B 12.39
TREX's P/B is ranked lower than
55% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 1.55 vs. TREX: 12.39 )
TREX' s 10-Year P/B Range
Min: 0.65   Max: 13.13
Current: 12.39

0.65
13.13
P/S 3.60
TREX's P/S is ranked lower than
51% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 0.98 vs. TREX: 3.60 )
TREX' s 10-Year P/S Range
Min: 0.28   Max: 4.02
Current: 3.6

0.28
4.02
PFCF 53.23
TREX's PFCF is ranked higher than
68% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 37.42 vs. TREX: 53.23 )
TREX' s 10-Year PFCF Range
Min: 2.08   Max: 231.88
Current: 53.23

2.08
231.88
EV-to-EBIT 20.94
TREX's EV-to-EBIT is ranked higher than
66% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 16.54 vs. TREX: 20.94 )
TREX' s 10-Year EV-to-EBIT Range
Min: -207.5   Max: 784.3
Current: 20.94

-207.5
784.3
PEG 1.61
TREX's PEG is ranked higher than
85% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. TREX: 1.61 )
TREX' s 10-Year PEG Range
Min: 0.92   Max: 51.72
Current: 1.61

0.92
51.72
Shiller P/E 1197.06
TREX's Shiller P/E is ranked higher than
71% of the 817 Companies
in the Global Building Materials industry.

( Industry Median: 174.41 vs. TREX: 1197.06 )
TREX' s 10-Year Shiller P/E Range
Min: 13.67   Max: 1466.67
Current: 1197.06

13.67
1466.67
Current Ratio 1.57
TREX's Current Ratio is ranked higher than
66% of the 757 Companies
in the Global Building Materials industry.

( Industry Median: 1.61 vs. TREX: 1.57 )
TREX' s 10-Year Current Ratio Range
Min: 0.43   Max: 4.45
Current: 1.57

0.43
4.45
Quick Ratio 1.27
TREX's Quick Ratio is ranked higher than
73% of the 757 Companies
in the Global Building Materials industry.

( Industry Median: 1.09 vs. TREX: 1.27 )
TREX' s 10-Year Quick Ratio Range
Min: 0.11   Max: 2.57
Current: 1.27

0.11
2.57

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.75
TREX's Price/Tangible Book is ranked lower than
51% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 2.02 vs. TREX: 13.75 )
TREX' s 10-Year Price/Tangible Book Range
Min: 0.9   Max: 13.86
Current: 13.75

0.9
13.86
Price/DCF (Projected) 3.66
TREX's Price/DCF (Projected) is ranked higher than
73% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 2.69 vs. TREX: 3.66 )
TREX' s 10-Year Price/DCF (Projected) Range
Min: 1.99   Max: 136.21
Current: 3.66

1.99
136.21
Price/Median PS Value 2.76
TREX's Price/Median PS Value is ranked lower than
53% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 1.10 vs. TREX: 2.76 )
TREX' s 10-Year Price/Median PS Value Range
Min: 0.27   Max: 5.1
Current: 2.76

0.27
5.1
Price/Peter Lynch Fair Value 1.17
TREX's Price/Peter Lynch Fair Value is ranked higher than
91% of the 814 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. TREX: 1.17 )
TREX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.01   Max: 4.83
Current: 1.17

1.01
4.83
Price/Graham Number 3.98
TREX's Price/Graham Number is ranked higher than
59% of the 818 Companies
in the Global Building Materials industry.

( Industry Median: 1.91 vs. TREX: 3.98 )
TREX' s 10-Year Price/Graham Number Range
Min: 1.43   Max: 8.86
Current: 3.98

1.43
8.86
Earnings Yield (Greenblatt) 4.80
TREX's Earnings Yield (Greenblatt) is ranked higher than
64% of the 757 Companies
in the Global Building Materials industry.

( Industry Median: 6.40 vs. TREX: 4.80 )
TREX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 9
Current: 4.8

0.1
9
Forward Rate of Return (Yacktman) 24.67
TREX's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 472 Companies
in the Global Building Materials industry.

( Industry Median: 7.02 vs. TREX: 24.67 )
TREX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -25.3   Max: 25.2
Current: 24.67

-25.3
25.2

Business Description

Industry: Building Materials » Building Materials
Compare:HCMLF, JHX, AHCHY, LFRGY, SHW » details
Traded in other countries:TRR.Germany,
Trex Company, Inc., was founded as a Delaware corporation in 1998. The Company is a manufacturer of wood-alternative decking and railing products, which are marketed under the brand name Trex. It offers durable, low maintenance product offerings in the decking, railing, porch, fencing, trim and steel deck framing categories. The majority of its products are made in a proprietary process that combines waste wood fibers and reclaimed polyethylene. Its principal brand names for decking are Trex Transcend, Trex Enhance and Trex Select, which each feature a protective shell for enhanced protection against fading, staining, mold and scratching. It also has Trex Hideaway, which is a hidden fastening system for specially grooved boards. Its railing products are Trex Transcend Railing, Trex Designer Series Railing, Trex Select Railing, and Trex Reveal aluminum railing. Trex Transcend Railing is available in the colors of Trex Transcend decking and finishes that make it appropriate for use with Trex decking products as well as other decking materials. The Company's Trex Transcend Porch Flooring and Railing System is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product through two specialty distributors. This product consists of structural posts, bottom rail, pickets, top rail and decorative post caps. Its TrexTrim product is a low maintenance cellular PVC residential exterior trim product that offers workability, durability, visual appeal and a low level of required maintenance. The Company also offer a steel deck framing system called Trex Elevations. It also offers a line of energy-efficient LED dimmable deck lighting, which is designed for use on posts, floors and steps, called Trex DeckLighting. The line includes a post cap light, deck rail light, riser light and a recessed deck light. The Company has manufacturing facilities in Winchester, Virginia and Fernley, Nevada, which had floor space of approximately 455,000 square feet and 250,000 square feet. The Company's principal competitors include Advanced Environmental Recycling Technologies, Inc., Azek Building Products, Inc. and Fiber Composites, LLC. The Company is subject to federal, state and local environmental regulation.
» More Articles for TREX

Headlines

Articles On GuruFocus.com
Ron Baron Comments on Trex Co Inc Jul 28 2014 
RS Investment Management Sells in Second Quarter Aug 17 2013 
TREX (TREX) Vice President and CFO James E Cline sells 3,660 Shares Mar 03 2011 
TREX (TREX) President and CEO Ronald W Kaplan sells 5,659 Shares Mar 03 2011 
TREX (TREX) Vice President and CFO James E Cline sells 16,412 Shares Mar 02 2011 
TREX (TREX) President and CEO Ronald W Kaplan sells 26,879 Shares Feb 23 2011 
TREX (TREX) President and CEO Ronald W Kaplan sells 22,195 Shares Feb 17 2011 
Chuck Royce Q3 Portfolio Update; Buys STRA, FN, ACCL, TREX, KIRK, SSCC Nov 09 2010 

More From Other Websites
Headwaters (HW) Upped to Strong Buy on Improved Outlook Dec 09 2014
Trex Wins Middle East's Premier Environmental Award Dec 04 2014
TREX CO INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Termination of a... Nov 25 2014
Trex Company Completes Debt Refinancing Nov 25 2014
Trex Company Completes Debt Refinancing Nov 25 2014
UPDATE: Stifel Reiterates On Trex Company On Positive 2015 Outlook Nov 07 2014
TREX CO INC Financials Oct 31 2014
10-Q for Trex Co., Inc. Oct 29 2014
Trex Beats Q3 Earnings on Strong Order Demand, Shares Up Oct 29 2014
Trex Company to Present at Stephens Fall Investment Conference Oct 29 2014
Trex Company to Present at Stephens Fall Investment Conference Oct 29 2014
Trex Co. Inc. (TREX) Jumps: Stock Rises 6.5% Oct 28 2014
Trex Company Conference Call Highlights Oct 27 2014
Trex (TREX) Stock Higher After 2014 Third Quarter Earnings Report Oct 27 2014
Trex Co Inc Earnings Call scheduled for 10:00 am ET today Oct 27 2014
Morning Movers: Chiquita Gains on Acquisition; Diamond Offshore Drops on Downgrade Oct 27 2014
TREX CO INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements... Oct 27 2014
Trex Company Announces Record Third-Quarter Sales and EPS Oct 27 2014
Trex Company Announces Record Third-Quarter Sales and EPS Oct 27 2014
Q3 2014 Trex Co Inc Earnings Release - Before Market Open Oct 27 2014

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