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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 0.03
TREX's Cash to Debt is ranked lower than
94% of the 652 Companies
in the Global Building Materials industry.

( Industry Median: 0.53 vs. TREX: 0.03 )
Ranked among companies with meaningful Cash to Debt only.
TREX' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.03

Equity to Asset 0.45
TREX's Equity to Asset is ranked lower than
64% of the 581 Companies
in the Global Building Materials industry.

( Industry Median: 0.52 vs. TREX: 0.45 )
Ranked among companies with meaningful Equity to Asset only.
TREX' s 10-Year Equity to Asset Range
Min: 0.29   Max: 0.7
Current: 0.45

0.29
0.7
Interest Coverage No Debt
TREX's Interest Coverage is ranked higher than
99% of the 357 Companies
in the Global Building Materials industry.

( Industry Median: 21.68 vs. TREX: No Debt )
Ranked among companies with meaningful Interest Coverage only.
TREX' s 10-Year Interest Coverage Range
Min: 0.13   Max: 9999.99
Current: No Debt

0.13
9999.99
F-Score: 8
Z-Score: 8.97
M-Score: -2.58
WACC vs ROIC
21.24%
31.44%
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 (%) 18.34
TREX's Operating margin (%) is ranked higher than
88% of the 658 Companies
in the Global Building Materials industry.

( Industry Median: 5.88 vs. TREX: 18.34 )
Ranked among companies with meaningful Operating margin (%) only.
TREX' s 10-Year Operating margin (%) Range
Min: -24.32   Max: 27.71
Current: 18.34

-24.32
27.71
Net-margin (%) 11.36
TREX's Net-margin (%) is ranked higher than
81% of the 657 Companies
in the Global Building Materials industry.

( Industry Median: 3.93 vs. TREX: 11.36 )
Ranked among companies with meaningful Net-margin (%) only.
TREX' s 10-Year Net-margin (%) Range
Min: -23.08   Max: 17.28
Current: 11.36

-23.08
17.28
ROE (%) 40.75
TREX's ROE (%) is ranked higher than
97% of the 636 Companies
in the Global Building Materials industry.

( Industry Median: 7.67 vs. TREX: 40.75 )
Ranked among companies with meaningful ROE (%) only.
TREX' s 10-Year ROE (%) Range
Min: -57.63   Max: 37.75
Current: 40.75

-57.63
37.75
ROA (%) 20.21
TREX's ROA (%) is ranked higher than
96% of the 657 Companies
in the Global Building Materials industry.

( Industry Median: 3.38 vs. TREX: 20.21 )
Ranked among companies with meaningful ROA (%) only.
TREX' s 10-Year ROA (%) Range
Min: -22.29   Max: 21.63
Current: 20.21

-22.29
21.63
ROC (Joel Greenblatt) (%) 44.35
TREX's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 654 Companies
in the Global Building Materials industry.

( Industry Median: 9.44 vs. TREX: 44.35 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
TREX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.06   Max: 69.92
Current: 44.35

-30.06
69.92
Revenue Growth (3Y)(%) 11.30
TREX's Revenue Growth (3Y)(%) is ranked higher than
75% of the 527 Companies
in the Global Building Materials industry.

( Industry Median: 5.00 vs. TREX: 11.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
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
96% of the 432 Companies
in the Global Building Materials industry.

( Industry Median: 5.00 vs. TREX: 56.70 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
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
Q1 2015

TREX Guru Trades in Q1 2015

Joel Greenblatt 14,542 sh (New)
Jim Simons 186,500 sh (+111.57%)
Ron Baron 1,955,462 sh (+0.73%)
PRIMECAP Management 183,337 sh (unchged)
Ron Baron 1,941,374 sh (unchged)
James Barrow 2,109,315 sh (-0.12%)
» 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) 35.20
TREX's P/E(ttm) is ranked lower than
74% of the 577 Companies
in the Global Building Materials industry.

( Industry Median: 19.00 vs. TREX: 35.20 )
Ranked among companies with meaningful P/E(ttm) only.
TREX' s 10-Year P/E(ttm) Range
Min: 18.31   Max: 3905
Current: 35.2

18.31
3905
Forward P/E 22.68
TREX's Forward P/E is ranked lower than
79% of the 360 Companies
in the Global Building Materials industry.

( Industry Median: 16.29 vs. TREX: 22.68 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 34.50
TREX's PE(NRI) is ranked lower than
75% of the 518 Companies
in the Global Building Materials industry.

( Industry Median: 18.00 vs. TREX: 34.50 )
Ranked among companies with meaningful PE(NRI) only.
TREX' s 10-Year PE(NRI) Range
Min: 18.02   Max: 99999999.99
Current: 34.5

18.02
99999999.99
P/B 12.50
TREX's P/B is ranked lower than
96% of the 733 Companies
in the Global Building Materials industry.

( Industry Median: 1.43 vs. TREX: 12.50 )
Ranked among companies with meaningful P/B only.
TREX' s 10-Year P/B Range
Min: 0.65   Max: 14.22
Current: 12.5

0.65
14.22
P/S 3.98
TREX's P/S is ranked lower than
97% of the 848 Companies
in the Global Building Materials industry.

( Industry Median: 0.94 vs. TREX: 3.98 )
Ranked among companies with meaningful P/S only.
TREX' s 10-Year P/S Range
Min: 0.28   Max: 4.3
Current: 3.98

0.28
4.3
PFCF 43.40
TREX's PFCF is ranked lower than
81% of the 435 Companies
in the Global Building Materials industry.

( Industry Median: 17.00 vs. TREX: 43.40 )
Ranked among companies with meaningful PFCF only.
TREX' s 10-Year PFCF Range
Min: 2.04   Max: 231.88
Current: 43.4

2.04
231.88
POCF 28.55
TREX's POCF is ranked lower than
85% of the 510 Companies
in the Global Building Materials industry.

( Industry Median: 9.96 vs. TREX: 28.55 )
Ranked among companies with meaningful POCF only.
TREX' s 10-Year POCF Range
Min: 1.77   Max: 120
Current: 28.55

1.77
120
EV-to-EBIT 22.30
TREX's EV-to-EBIT is ranked lower than
68% of the 543 Companies
in the Global Building Materials industry.

( Industry Median: 15.88 vs. TREX: 22.30 )
Ranked among companies with meaningful EV-to-EBIT only.
TREX' s 10-Year EV-to-EBIT Range
Min: -207.5   Max: 1244.1
Current: 22.3

-207.5
1244.1
PEG 1.19
TREX's PEG is ranked higher than
56% of the 222 Companies
in the Global Building Materials industry.

( Industry Median: 1.43 vs. TREX: 1.19 )
Ranked among companies with meaningful PEG only.
TREX' s 10-Year PEG Range
Min: 0.86   Max: 72.7
Current: 1.19

0.86
72.7
Shiller P/E 184.40
TREX's Shiller P/E is ranked lower than
96% of the 390 Companies
in the Global Building Materials industry.

( Industry Median: 23.43 vs. TREX: 184.40 )
Ranked among companies with meaningful Shiller P/E only.
TREX' s 10-Year Shiller P/E Range
Min: 13.67   Max: 1253.33
Current: 184.4

13.67
1253.33
Current Ratio 1.37
TREX's Current Ratio is ranked lower than
60% of the 587 Companies
in the Global Building Materials industry.

( Industry Median: 1.58 vs. TREX: 1.37 )
Ranked among companies with meaningful Current Ratio only.
TREX' s 10-Year Current Ratio Range
Min: 0.43   Max: 4.45
Current: 1.37

0.43
4.45
Quick Ratio 1.19
TREX's Quick Ratio is ranked higher than
56% of the 587 Companies
in the Global Building Materials industry.

( Industry Median: 1.08 vs. TREX: 1.19 )
Ranked among companies with meaningful Quick Ratio only.
TREX' s 10-Year Quick Ratio Range
Min: 0.11   Max: 2.57
Current: 1.19

0.11
2.57
Days Inventory 31.42
TREX's Days Inventory is ranked higher than
84% of the 638 Companies
in the Global Building Materials industry.

( Industry Median: 74.31 vs. TREX: 31.42 )
Ranked among companies with meaningful Days Inventory only.
TREX' s 10-Year Days Inventory Range
Min: 29.89   Max: 150.85
Current: 31.42

29.89
150.85
Days Sales Outstanding 121.42
TREX's Days Sales Outstanding is ranked lower than
86% of the 538 Companies
in the Global Building Materials industry.

( Industry Median: 55.28 vs. TREX: 121.42 )
Ranked among companies with meaningful Days Sales Outstanding only.
TREX' s 10-Year Days Sales Outstanding Range
Min: 1.84   Max: 61.27
Current: 121.42

1.84
61.27

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.40
TREX's Price/Tangible Book is ranked lower than
95% of the 768 Companies
in the Global Building Materials industry.

( Industry Median: 1.70 vs. TREX: 13.40 )
Ranked among companies with meaningful Price/Tangible Book only.
TREX' s 10-Year Price/Tangible Book Range
Min: 0.9   Max: 13.86
Current: 13.4

0.9
13.86
Price/DCF (Projected) 5.90
TREX's Price/DCF (Projected) is ranked lower than
84% of the 444 Companies
in the Global Building Materials industry.

( Industry Median: 1.40 vs. TREX: 5.90 )
Ranked among companies with meaningful Price/DCF (Projected) only.
TREX' s 10-Year Price/DCF (Projected) Range
Min: 1.98   Max: 119.19
Current: 5.9

1.98
119.19
Price/Median PS Value 3.00
TREX's Price/Median PS Value is ranked lower than
94% of the 792 Companies
in the Global Building Materials industry.

( Industry Median: 1.20 vs. TREX: 3.00 )
Ranked among companies with meaningful Price/Median PS Value only.
TREX' s 10-Year Price/Median PS Value Range
Min: 0.27   Max: 4.9
Current: 3

0.27
4.9
Price/Peter Lynch Fair Value 1.40
TREX's Price/Peter Lynch Fair Value is ranked lower than
60% of the 184 Companies
in the Global Building Materials industry.

( Industry Median: 1.00 vs. TREX: 1.40 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
TREX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.92   Max: 4.83
Current: 1.4

0.92
4.83
Price/Graham Number 4.60
TREX's Price/Graham Number is ranked lower than
90% of the 616 Companies
in the Global Building Materials industry.

( Industry Median: 1.50 vs. TREX: 4.60 )
Ranked among companies with meaningful Price/Graham Number only.
TREX' s 10-Year Price/Graham Number Range
Min: 1.64   Max: 15.1
Current: 4.6

1.64
15.1
Earnings Yield (Greenblatt) 4.60
TREX's Earnings Yield (Greenblatt) is ranked lower than
57% of the 698 Companies
in the Global Building Materials industry.

( Industry Median: 5.40 vs. TREX: 4.60 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
TREX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 10.2
Current: 4.6

0.1
10.2
Forward Rate of Return (Yacktman) 31.80
TREX's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 320 Companies
in the Global Building Materials industry.

( Industry Median: 7.52 vs. TREX: 31.80 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) only.
TREX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -26   Max: 31.8
Current: 31.8

-26
31.8

Business Description

Industry: Building Materials » Building Materials
Compare:HCMLF, JHX, AHCHY, LFRGY, SHW » details
Traded in other countries:TRR.Germany,
Trex Co 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
TREX CO INC Financials May 15 2015
10-Q for Trex Co., Inc. May 11 2015
Trex Beats on Q1 Earnings; Expects Record Revenues in Q2 - Analyst Blog May 11 2015
TREX CO INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Change in Directors or... May 08 2015
Trex Co Inc Earnings Call scheduled for 10:00 am ET today May 08 2015
Trex Decks Wall Street Estimates, Q1 Profit Up 50% May 08 2015
Trex tops Street 1Q forecasts May 08 2015
Trex tops Street 1Q forecasts May 08 2015
Trex Names James E. Cline President and CEO Effective August 17, 2015 May 08 2015
Trex Company Announces Record First-Quarter Sales and Operating Income May 08 2015
Trex Company Announces Record First-Quarter Sales and Operating Income May 08 2015
Trex Names James E. Cline President and CEO Effective August 17, 2015 May 08 2015
Q1 2015 Trex Co Inc Earnings Release - Before Market Open May 08 2015
Trex Launches Online Cost Calculator May 07 2015
Deck Maker Trex Flexes Muscle After Company Rebuild Apr 30 2015
Trex Takes The Golden Hammer Apr 27 2015
Trex Takes the Golden Hammer Apr 27 2015
Simpson Manufacturing Down on Q1 Earnings & Revenues Miss - Analyst Blog Apr 24 2015
United Rentals Q1 Earnings Beat on Improving Rental Scene - Analyst Blog Apr 22 2015
Trex Company to Announce First-Quarter-2015 Results on May 8th Apr 16 2015

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