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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 : 9/10

vs
industry
vs
history
Cash to Debt No Debt
TREX's Cash to Debt is ranked higher than
91% of the 994 Companies
in the Global Building Materials industry.

( Industry Median: 0.39 vs. TREX: No Debt )
TREX' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: No Debt

Equity to Asset 0.58
TREX's Equity to Asset is ranked higher than
74% of the 883 Companies
in the Global Building Materials industry.

( Industry Median: 0.51 vs. TREX: 0.58 )
TREX' s 10-Year Equity to Asset Range
Min: 0.26   Max: 0.62
Current: 0.58

0.26
0.62
Interest Coverage No Debt
TREX's Interest Coverage is ranked higher than
91% of the 510 Companies
in the Global Building Materials industry.

( Industry Median: 15.92 vs. TREX: No Debt )
TREX' s 10-Year Interest Coverage Range
Min: 0.13   Max: 9999.99
Current: No Debt

0.13
9999.99
F-Score: 9
Z-Score: 16.49
M-Score: -2.92
WACC vs ROIC
20.87%
32.83%
WACC
ROIC
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 (%) 17.32
TREX's Operating margin (%) is ranked higher than
91% of the 998 Companies
in the Global Building Materials industry.

( Industry Median: 6.35 vs. TREX: 17.32 )
TREX' s 10-Year Operating margin (%) Range
Min: -24.32   Max: 27.71
Current: 17.32

-24.32
27.71
Net-margin (%) 10.60
TREX's Net-margin (%) is ranked higher than
87% of the 998 Companies
in the Global Building Materials industry.

( Industry Median: 4.21 vs. TREX: 10.60 )
TREX' s 10-Year Net-margin (%) Range
Min: -23.08   Max: 17.28
Current: 10.6

-23.08
17.28
ROE (%) 37.81
TREX's ROE (%) is ranked higher than
98% of the 977 Companies
in the Global Building Materials industry.

( Industry Median: 7.95 vs. TREX: 37.81 )
TREX' s 10-Year ROE (%) Range
Min: -57.63   Max: 37.75
Current: 37.81

-57.63
37.75
ROA (%) 19.67
TREX's ROA (%) is ranked higher than
97% of the 1005 Companies
in the Global Building Materials industry.

( Industry Median: 3.51 vs. TREX: 19.67 )
TREX' s 10-Year ROA (%) Range
Min: -22.29   Max: 21.63
Current: 19.67

-22.29
21.63
ROC (Joel Greenblatt) (%) 45.54
TREX's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 1000 Companies
in the Global Building Materials industry.

( Industry Median: 10.54 vs. TREX: 45.54 )
TREX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.06   Max: 69.92
Current: 45.54

-30.06
69.92
Revenue Growth (3Y)(%) 11.30
TREX's Revenue Growth (3Y)(%) is ranked higher than
83% of the 815 Companies
in the Global Building Materials industry.

( Industry Median: 5.30 vs. TREX: 11.30 )
TREX' s 10-Year Revenue Growth (3Y)(%) Range
Min: -7.3   Max: 27.6
Current: 11.3

-7.3
27.6
EBITDA Growth (3Y)(%) 56.70
TREX's EBITDA Growth (3Y)(%) is ranked higher than
97% of the 689 Companies
in the Global Building Materials industry.

( Industry Median: 1.40 vs. TREX: 56.70 )
TREX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -27.5   Max: 56.7
Current: 56.7

-27.5
56.7
» TREX's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2014

TREX Guru Trades in Q2 2014

Ron Baron 1,917,874 sh (+912.90%)
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 (+333.80%)
Ron Baron 1,927,874 sh (+0.52%)
Chuck Royce 51,400 sh (unchged)
James Barrow 2,179,500 sh (-2.93%)
» More
Q4 2014

TREX Guru Trades in Q4 2014

Ron Baron 1,941,374 sh (+0.70%)
James Barrow 2,111,915 sh (unchged)
PRIMECAP Management 183,337 sh (unchged)
Joel Greenblatt Sold Out
Chuck Royce Sold Out
James Barrow 2,111,915 sh (-3.10%)
Jim Simons 88,149 sh (-5.92%)
» More
2015

TREX Guru Trades in 2015

Ron Baron 1,941,374 sh (unchged)
» 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%)

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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) 39.60
TREX's P/E(ttm) is ranked higher than
64% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 37.20 vs. TREX: 39.60 )
TREX' s 10-Year P/E(ttm) Range
Min: 18.31   Max: 3905
Current: 39.6

18.31
3905
Forward P/E 22.47
TREX's Forward P/E is ranked higher than
75% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 22.47 )
N/A
PE(NRI) 41.50
TREX's PE(NRI) is ranked higher than
67% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 38.20 vs. TREX: 41.50 )
TREX' s 10-Year PE(NRI) Range
Min: 18.02   Max: 99999999.99
Current: 41.5

18.02
99999999.99
P/B 14.40
TREX's P/B is ranked lower than
57% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 1.89 vs. TREX: 14.40 )
TREX' s 10-Year P/B Range
Min: 0.65   Max: 15.41
Current: 14.4

0.65
15.41
P/S 4.17
TREX's P/S is ranked lower than
65% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 1.25 vs. TREX: 4.17 )
TREX' s 10-Year P/S Range
Min: 0.28   Max: 4.57
Current: 4.17

0.28
4.57
PFCF 35.20
TREX's PFCF is ranked higher than
73% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 35.20 )
TREX' s 10-Year PFCF Range
Min: 2.04   Max: 231.88
Current: 35.2

2.04
231.88
POCF 28.66
TREX's POCF is ranked higher than
64% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 17.58 vs. TREX: 28.66 )
TREX' s 10-Year POCF Range
Min: 1.77   Max: 120
Current: 28.66

1.77
120
EV-to-EBIT 24.91
TREX's EV-to-EBIT is ranked higher than
68% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 23.43 vs. TREX: 24.91 )
TREX' s 10-Year EV-to-EBIT Range
Min: -207.5   Max: 1244.1
Current: 24.91

-207.5
1244.1
PEG 1.43
TREX's PEG is ranked higher than
91% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 1.43 )
TREX' s 10-Year PEG Range
Min: 0.86   Max: 72.7
Current: 1.43

0.86
72.7
Shiller P/E 310.20
TREX's Shiller P/E is ranked higher than
72% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 310.20 )
TREX' s 10-Year Shiller P/E Range
Min: 13.67   Max: 1466.67
Current: 310.2

13.67
1466.67
Current Ratio 1.72
TREX's Current Ratio is ranked higher than
71% of the 899 Companies
in the Global Building Materials industry.

( Industry Median: 1.53 vs. TREX: 1.72 )
TREX' s 10-Year Current Ratio Range
Min: 0.71   Max: 4.45
Current: 1.72

0.71
4.45
Quick Ratio 1.24
TREX's Quick Ratio is ranked higher than
73% of the 899 Companies
in the Global Building Materials industry.

( Industry Median: 1.03 vs. TREX: 1.24 )
TREX' s 10-Year Quick Ratio Range
Min: 0.17   Max: 1.84
Current: 1.24

0.17
1.84
Days Inventory 32.54
TREX's Days Inventory is ranked higher than
92% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 88.29 vs. TREX: 32.54 )
TREX' s 10-Year Days Inventory Range
Min: 29.89   Max: 150.85
Current: 32.54

29.89
150.85
Days Sales Outstanding 33.91
TREX's Days Sales Outstanding is ranked higher than
89% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 72.05 vs. TREX: 33.91 )
TREX' s 10-Year Days Sales Outstanding Range
Min: 1.84   Max: 61.27
Current: 33.91

1.84
61.27

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 15.50
TREX's Price/Tangible Book is ranked lower than
54% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 3.00 vs. TREX: 15.50 )
TREX' s 10-Year Price/Tangible Book Range
Min: 0.9   Max: 13.86
Current: 15.5

0.9
13.86
Price/DCF (Projected) 4.00
TREX's Price/DCF (Projected) is ranked higher than
76% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 4.00 )
TREX' s 10-Year Price/DCF (Projected) Range
Min: 2.47   Max: 17.34
Current: 4

2.47
17.34
Price/Median PS Value 3.20
TREX's Price/Median PS Value is ranked lower than
54% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 1.40 vs. TREX: 3.20 )
TREX' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 3.24
Current: 3.2

0.3
3.24
Price/Peter Lynch Fair Value 1.60
TREX's Price/Peter Lynch Fair Value is ranked higher than
91% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 0.00 vs. TREX: 1.60 )
TREX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.01   Max: 3.82
Current: 1.6

1.01
3.82
Price/Graham Number 5.10
TREX's Price/Graham Number is ranked higher than
61% of the 1218 Companies
in the Global Building Materials industry.

( Industry Median: 3.75 vs. TREX: 5.10 )
TREX' s 10-Year Price/Graham Number Range
Min: 1.69   Max: 8.86
Current: 5.1

1.69
8.86
Earnings Yield (Greenblatt) 4.00
TREX's Earnings Yield (Greenblatt) is ranked higher than
60% of the 996 Companies
in the Global Building Materials industry.

( Industry Median: 5.20 vs. TREX: 4.00 )
TREX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 10.2
Current: 4

0.1
10.2
Forward Rate of Return (Yacktman) 30.05
TREX's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 536 Companies
in the Global Building Materials industry.

( Industry Median: 6.00 vs. TREX: 30.05 )
TREX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -26   Max: 30.7
Current: 30.05

-26
30.7

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 18 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 18 2011 
Chuck Royce Q3 Portfolio Update; Buys STRA, FN, ACCL, TREX, KIRK, SSCC Nov 09 2010 


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