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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 0.16
TREX's Cash to Debt is ranked higher than
52% of the 677 Companies
in the Global Building Materials industry.

( Industry Median: 0.37 vs. TREX: 0.16 )
TREX' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.16

Equity to Asset 0.46
TREX's Equity to Asset is ranked higher than
58% of the 668 Companies
in the Global Building Materials industry.

( Industry Median: 0.50 vs. TREX: 0.46 )
TREX' s 10-Year Equity to Asset Range
Min: 0.29   Max: 0.7
Current: 0.46

0.29
0.7
Interest Coverage 40.95
TREX's Interest Coverage is ranked higher than
73% of the 422 Companies
in the Global Building Materials industry.

( Industry Median: 14.77 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: 8.83
M-Score: -2.74
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 (%) 9.42
TREX's Operating margin (%) is ranked higher than
79% of the 689 Companies
in the Global Building Materials industry.

( Industry Median: 6.65 vs. TREX: 9.42 )
TREX' s 10-Year Operating margin (%) Range
Min: -24.32   Max: 27.71
Current: 9.42

-24.32
27.71
Net-margin (%) 7.61
TREX's Net-margin (%) is ranked higher than
81% of the 689 Companies
in the Global Building Materials industry.

( Industry Median: 4.21 vs. TREX: 7.61 )
TREX' s 10-Year Net-margin (%) Range
Min: -23.08   Max: 17.28
Current: 7.61

-23.08
17.28
ROE (%) 24.64
TREX's ROE (%) is ranked higher than
95% of the 681 Companies
in the Global Building Materials industry.

( Industry Median: 7.49 vs. TREX: 24.64 )
TREX' s 10-Year ROE (%) Range
Min: -57.63   Max: 37
Current: 24.64

-57.63
37
ROA (%) 13.01
TREX's ROA (%) is ranked higher than
96% of the 690 Companies
in the Global Building Materials industry.

( Industry Median: 3.40 vs. TREX: 13.01 )
TREX' s 10-Year ROA (%) Range
Min: -22.29   Max: 19.4
Current: 13.01

-22.29
19.4
ROC (Joel Greenblatt) (%) 23.14
TREX's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 690 Companies
in the Global Building Materials industry.

( Industry Median: 11.72 vs. TREX: 23.14 )
TREX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.06   Max: 69.92
Current: 23.14

-30.06
69.92
Revenue Growth (%) -1.50
TREX's Revenue Growth (%) is ranked higher than
53% of the 593 Companies
in the Global Building Materials industry.

( Industry Median: 5.00 vs. TREX: -1.50 )
TREX' s 10-Year Revenue Growth (%) Range
Min: -7.3   Max: 27.6
Current: -1.5

-7.3
27.6
EBITDA Growth (%) 11.90
TREX's EBITDA Growth (%) is ranked higher than
75% of the 527 Companies
in the Global Building Materials industry.

( Industry Median: 4.20 vs. TREX: 11.90 )
TREX' s 10-Year EBITDA Growth (%) Range
Min: -27.5   Max: 35.4
Current: 11.9

-27.5
35.4
» TREX's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

TREX Guru Trades in Q3 2013

Steven Cohen Sold Out
Joel Greenblatt Sold Out
James Barrow 1,219,807 sh (-0.84%)
Chuck Royce 58,500 sh (-44.2%)
Jim Simons 121,200 sh (-52.67%)
» More
Q4 2013

TREX Guru Trades in Q4 2013

Steven Cohen 2,645 sh (New)
Paul Tudor Jones 3,337 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%)
Paul Tudor Jones Sold Out
Steven Cohen 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
» 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
Ron Baron 2014-06-30 Add 912.9%0.2%$28.56 - $40.06 $ 36.788%1917874
Ron Baron 2014-03-31 New Buy0.03%$63.35 - $82.58 $ 36.78-49%94672
Joel Greenblatt 2013-09-30 Sold Out 0.08%$21.06 - $25.72 $ 36.7858%0
Joel Greenblatt 2012-12-31 Reduce -38.34%0.06%$16.5 - $20.38 $ 36.7898%40662
Joel Greenblatt 2012-12-31 Reduce -38.34%0.06%$16.5 - $20.38 $ 36.7898%40662
Joel Greenblatt 2012-09-30 New Buy0.15%$12.47 - $17.1 $ 36.78146%65944
Joel Greenblatt 2012-03-31 Sold Out 0.11%$11.49 - $16.26 $ 36.78194%0
Ron Baron 2011-12-31 Sold Out 0.07%$7.46 - $11.78 $ 36.78272%0
Joel Greenblatt 2011-12-31 Add 33.92%0.03%$7.46 - $11.78 $ 36.78272%41502
Joel Greenblatt 2011-09-30 Add 32.96%0.02%$7.9 - $12.66 $ 36.78285%30991
James Barrow 2011-09-30 Add 68.4%0.02%$7.9 - $12.66 $ 36.78285%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) 44.90
TREX's P/E(ttm) is ranked higher than
54% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 22.40 vs. TREX: 44.90 )
TREX' s 10-Year P/E(ttm) Range
Min: 18.31   Max: 3905
Current: 44.9

18.31
3905
P/B 12.18
TREX's P/B is ranked lower than
65% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 1.37 vs. TREX: 12.18 )
TREX' s 10-Year P/B Range
Min: 0.65   Max: 12.88
Current: 12.18

0.65
12.88
P/S 3.44
TREX's P/S is ranked lower than
60% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 0.93 vs. TREX: 3.44 )
TREX' s 10-Year P/S Range
Min: 0.28   Max: 4.02
Current: 3.44

0.28
4.02
PFCF 58.38
TREX's PFCF is ranked higher than
65% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 64.67 vs. TREX: 58.38 )
TREX' s 10-Year PFCF Range
Min: 2.04   Max: 231.88
Current: 58.38

2.04
231.88
EV-to-EBIT 35.74
TREX's EV-to-EBIT is ranked higher than
58% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 16.79 vs. TREX: 35.74 )
TREX' s 10-Year EV-to-EBIT Range
Min: -207.5   Max: 1244.1
Current: 35.74

-207.5
1244.1
PEG 2.61
TREX's PEG is ranked higher than
83% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. TREX: 2.61 )
TREX' s 10-Year PEG Range
Min: 1.61   Max: 72.7
Current: 2.61

1.61
72.7
Shiller P/E 1390.84
TREX's Shiller P/E is ranked higher than
64% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 333.20 vs. TREX: 1390.84 )
TREX' s 10-Year Shiller P/E Range
Min: 13.67   Max: 1275.33
Current: 1390.84

13.67
1275.33
Current Ratio 1.22
TREX's Current Ratio is ranked higher than
53% of the 686 Companies
in the Global Building Materials industry.

( Industry Median: 1.60 vs. TREX: 1.22 )
TREX' s 10-Year Current Ratio Range
Min: 0.43   Max: 4.45
Current: 1.22

0.43
4.45
Quick Ratio 0.97
TREX's Quick Ratio is ranked higher than
60% of the 686 Companies
in the Global Building Materials industry.

( Industry Median: 1.07 vs. TREX: 0.97 )
TREX' s 10-Year Quick Ratio Range
Min: 0.11   Max: 2.57
Current: 0.97

0.11
2.57

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.63
TREX's Price/Tangible Book is ranked lower than
54% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 1.87 vs. TREX: 13.63 )
TREX' s 10-Year Price/Tangible Book Range
Min: 0.9   Max: 13.86
Current: 13.63

0.9
13.86
Price/DCF (Projected) 3.68
TREX's Price/DCF (Projected) is ranked higher than
72% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 2.44 vs. TREX: 3.68 )
TREX' s 10-Year Price/DCF (Projected) Range
Min: 1.98   Max: 119.19
Current: 3.68

1.98
119.19
Price/Median PS Value 2.65
TREX's Price/Median PS Value is ranked lower than
54% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 1.08 vs. TREX: 2.65 )
TREX' s 10-Year Price/Median PS Value Range
Min: 0.27   Max: 4.94
Current: 2.65

0.27
4.94
Price/Peter Lynch Fair Value 2.43
TREX's Price/Peter Lynch Fair Value is ranked higher than
86% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. TREX: 2.43 )
TREX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.01   Max: 4.83
Current: 2.43

1.01
4.83
Price/Graham Number 5.11
TREX's Price/Graham Number is ranked higher than
55% of the 723 Companies
in the Global Building Materials industry.

( Industry Median: 1.76 vs. TREX: 5.11 )
TREX' s 10-Year Price/Graham Number Range
Min: 1.64   Max: 15.1
Current: 5.11

1.64
15.1
Earnings Yield (Greenblatt) 2.80
TREX's Earnings Yield (Greenblatt) is ranked lower than
55% of the 593 Companies
in the Global Building Materials industry.

( Industry Median: 7.20 vs. TREX: 2.80 )
TREX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 10.2
Current: 2.8

0.1
10.2
Forward Rate of Return (Yacktman) 20.20
TREX's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 511 Companies
in the Global Building Materials industry.

( Industry Median: 6.33 vs. TREX: 20.20 )
TREX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -19.3   Max: 21.5
Current: 20.2

-19.3
21.5

Business Description

Industry: Building Materials » Building Materials
Compare:HCMLF, JHX, AHCHY, LFRGY, SHW » details
Traded in other countries:TRR.Germany
Trex Company, Inc. founded as a Delaware corporation in 1998. The Company is a manufacturer of wood-alternative decking, railing, fencing and trim products, which are marketed under the brand name Trex. It offers a set of aesthetically durable, low maintenance product offerings in the decking, railing, porch, fencing and trim categories. The Company has three principal decking products: Trex Transcend, Trex Accents, and Trex Escapes; two railing products: Trex Designer Series Railing and Trex Transcend Railing; two fencing products: Trex Seclusions and Trex Surroundings; and a cellular PVC outdoor trim product, TrexTrim. In addition, it offers Trex Hideaway, which is a hidden fastening system for specially grooved boards. The Company has received product building code listings from the major U.S. and Canadian building code listing agencies for both its decking and railing systems. Its listings facilitate the acquisition of building permits by deck builders and promote consumer and industry acceptance of its products as an alternative to wood in decking. The Company distributes its products through wholesale distribution, retail lumber dealers, Home Depot and Lowe's. The Company has manufacturing facilities in Winchester, Virginia and Fernley, Nevada, which had floor space of approximately 265,000 square feet and 250,000 square feet, respectively. Trex products are mainly manufactured from waste wood fiber and reclaimed polyethylene. Its main manufacturing process involves mixing wood particles with plastic, heating and finally extruding, or forcing, the highly viscous and abrasive material through a profile die. In decking, it competes with wood and other manufacturers of wood alternative decking products. In railing, it competes with wood and other manufacturers of composite, non-wood and plastic products, as well as with railings using metal, glass, vinyl and other materials. In privacy fencing, the Company competes with wood, vinyl and other manufacturers of composites. In trim, it competes against wood, engineered wood, fiber cement, and other manufacturers of cellular PVC and similar plastic products. 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
Trex(R) Announces New Aluminum Gate and ADA-Compliant Handrails Oct 22 2014
Trex Company to Announce Third-Quarter-2014 Results on October 27th Oct 08 2014
TrexPro(R) Professional Building Services Honored With Professional Remodeler Design Award Oct 08 2014
Trex Company Strikes Havana Gold Oct 01 2014
Lippert/Heilshorn Consultant Pleads Guilty to Insider Trades Sep 24 2014
Trex Company Donates Decking to Warrior Transition Home Sep 16 2014
Trex Launches Outdoor Lighting Product Line on Amazon Sep 11 2014
Trex Enters e-Commerce Marketplace with Launch of Outdoor Lighting™ on Amazon Sep 10 2014
TREX CO INC Financials Aug 29 2014
Lippert/Heilshorn Consultant Charged With Insider Trading Aug 26 2014
Trex Company Announces Financial Presentation Schedule Aug 26 2014
Quantitative screens: relative strength scans Aug 14 2014
[video] Learning the Tricks From Trex's Turnaround Aug 13 2014
Why I Have Job Candidates Drive My Car Aug 11 2014
CaesarStone Shares Soar As U.S. Sales Boom 55% Aug 06 2014
High-Performance Trex(R) Decking Chosen for Premier Dubai Development Project Aug 06 2014
Trex Shares Surge as Q2 Earnings Rise on Pent-up Demand Aug 05 2014
Midday movers: Amgen, Groupon, Walt Disney & more Aug 04 2014
Why Trex Company (TREX) Stock Is Skyrocketing Today Aug 04 2014
[video] Trex higher on strong earnings Aug 04 2014

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