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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 0.11
TREX's Cash to Debt is ranked lower than
81% of the 674 Companies
in the Global Building Materials industry.

( Industry Median: 0.54 vs. TREX: 0.11 )
Ranked among companies with meaningful Cash to Debt only.
TREX' s 10-Year Cash to Debt Range
Min: 0  Med: 0.22 Max: No Debt
Current: 0.11
Equity to Asset 0.55
TREX's Equity to Asset is ranked higher than
56% of the 603 Companies
in the Global Building Materials industry.

( Industry Median: 0.52 vs. TREX: 0.55 )
Ranked among companies with meaningful Equity to Asset only.
TREX' s 10-Year Equity to Asset Range
Min: 0.29  Med: 0.50 Max: 0.7
Current: 0.55
0.29
0.7
Interest Coverage No Debt
TREX's Interest Coverage is ranked higher than
99% of the 380 Companies
in the Global Building Materials industry.

( Industry Median: 19.94 vs. TREX: No Debt )
Ranked among companies with meaningful Interest Coverage only.
TREX' s 10-Year Interest Coverage Range
Min: 0.13  Med: 4.29 Max: 9999.99
Current: No Debt
0.13
9999.99
F-Score: 8
Z-Score: 9.34
M-Score: -1.20
WACC vs ROIC
22.96%
34.53%
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 (%) 18.93
TREX's Operating margin (%) is ranked higher than
87% of the 679 Companies
in the Global Building Materials industry.

( Industry Median: 6.00 vs. TREX: 18.93 )
Ranked among companies with meaningful Operating margin (%) only.
TREX' s 10-Year Operating margin (%) Range
Min: -24.32  Med: 7.20 Max: 27.71
Current: 18.93
-24.32
27.71
Net-margin (%) 11.78
TREX's Net-margin (%) is ranked higher than
81% of the 681 Companies
in the Global Building Materials industry.

( Industry Median: 4.15 vs. TREX: 11.78 )
Ranked among companies with meaningful Net-margin (%) only.
TREX' s 10-Year Net-margin (%) Range
Min: -23.08  Med: 7.74 Max: 17.28
Current: 11.78
-23.08
17.28
ROE (%) 41.93
TREX's ROE (%) is ranked higher than
97% of the 662 Companies
in the Global Building Materials industry.

( Industry Median: 7.15 vs. TREX: 41.93 )
Ranked among companies with meaningful ROE (%) only.
TREX' s 10-Year ROE (%) Range
Min: -57.63  Med: 9.24 Max: 37.75
Current: 41.93
-57.63
37.75
ROA (%) 21.69
TREX's ROA (%) is ranked higher than
95% of the 683 Companies
in the Global Building Materials industry.

( Industry Median: 3.45 vs. TREX: 21.69 )
Ranked among companies with meaningful ROA (%) only.
TREX' s 10-Year ROA (%) Range
Min: -22.29  Med: 3.84 Max: 21.63
Current: 21.69
-22.29
21.63
ROC (Joel Greenblatt) (%) 48.56
TREX's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 676 Companies
in the Global Building Materials industry.

( Industry Median: 11.10 vs. TREX: 48.56 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
TREX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.06  Med: 10.50 Max: 66.67
Current: 48.56
-30.06
66.67
Revenue Growth (3Y)(%) 11.30
TREX's Revenue Growth (3Y)(%) is ranked higher than
76% of the 549 Companies
in the Global Building Materials industry.

( Industry Median: 4.30 vs. TREX: 11.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
TREX' s 10-Year Revenue Growth (3Y)(%) Range
Min: -7.3  Med: 10.10 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 459 Companies
in the Global Building Materials industry.

( Industry Median: 3.90 vs. TREX: 56.70 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
TREX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -27.5  Med: 9.90 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

Q3 2014

TREX Guru Trades in Q3 2014

Joel Greenblatt 20,886 sh (New)
PRIMECAP Management 183,337 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)
Chuck Royce Sold Out
Joel Greenblatt 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
Q2 2015

TREX Guru Trades in Q2 2015

PRIMECAP Management 187,037 sh (+2.02%)
Ron Baron 1,976,962 sh (+1.10%)
Joel Greenblatt Sold Out
James Barrow 1,824,221 sh (-13.52%)
Jim Simons 100,400 sh (-46.17%)
» 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

Ratios

vs
industry
vs
history
P/E(ttm) 23.59
TREX's P/E(ttm) is ranked lower than
67% of the 542 Companies
in the Global Building Materials industry.

( Industry Median: 16.60 vs. TREX: 23.59 )
Ranked among companies with meaningful P/E(ttm) only.
TREX' s 10-Year P/E(ttm) Range
Min: 18.31  Med: 43.51 Max: 3905
Current: 23.59
18.31
3905
Forward P/E 18.66
TREX's Forward P/E is ranked lower than
66% of the 196 Companies
in the Global Building Materials industry.

( Industry Median: 15.46 vs. TREX: 18.66 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 24.90
TREX's PE(NRI) is ranked lower than
68% of the 539 Companies
in the Global Building Materials industry.

( Industry Median: 16.40 vs. TREX: 24.90 )
Ranked among companies with meaningful PE(NRI) only.
TREX' s 10-Year PE(NRI) Range
Min: 18.02  Med: 43.51 Max: 99999999.99
Current: 24.9
18.02
99999999.99
P/B 7.87
TREX's P/B is ranked lower than
96% of the 613 Companies
in the Global Building Materials industry.

( Industry Median: 1.24 vs. TREX: 7.87 )
Ranked among companies with meaningful P/B only.
TREX' s 10-Year P/B Range
Min: 0.65  Med: 2.79 Max: 14.22
Current: 7.87
0.65
14.22
P/S 2.78
TREX's P/S is ranked lower than
82% of the 672 Companies
in the Global Building Materials industry.

( Industry Median: 0.92 vs. TREX: 2.78 )
Ranked among companies with meaningful P/S only.
TREX' s 10-Year P/S Range
Min: 0.28  Med: 1.31 Max: 4.3
Current: 2.78
0.28
4.3
POCF 62.90
TREX's POCF is ranked lower than
95% of the 475 Companies
in the Global Building Materials industry.

( Industry Median: 10.83 vs. TREX: 62.90 )
Ranked among companies with meaningful POCF only.
TREX' s 10-Year POCF Range
Min: 1.77  Med: 18.40 Max: 120
Current: 62.9
1.77
120
EV-to-EBIT 15.18
TREX's EV-to-EBIT is ranked lower than
58% of the 569 Companies
in the Global Building Materials industry.

( Industry Median: 13.67 vs. TREX: 15.18 )
Ranked among companies with meaningful EV-to-EBIT only.
TREX' s 10-Year EV-to-EBIT Range
Min: -207.5  Med: 24.30 Max: 1244.1
Current: 15.18
-207.5
1244.1
PEG 0.86
TREX's PEG is ranked higher than
61% of the 230 Companies
in the Global Building Materials industry.

( Industry Median: 1.37 vs. TREX: 0.86 )
Ranked among companies with meaningful PEG only.
TREX' s 10-Year PEG Range
Min: 0.85  Med: 1.95 Max: 72.7
Current: 0.86
0.85
72.7
Shiller P/E 113.70
TREX's Shiller P/E is ranked lower than
95% of the 317 Companies
in the Global Building Materials industry.

( Industry Median: 19.49 vs. TREX: 113.70 )
Ranked among companies with meaningful Shiller P/E only.
TREX' s 10-Year Shiller P/E Range
Min: 13.67  Med: 31.17 Max: 1466.67
Current: 113.7
13.67
1466.67
Current Ratio 1.69
TREX's Current Ratio is ranked higher than
54% of the 615 Companies
in the Global Building Materials industry.

( Industry Median: 1.57 vs. TREX: 1.69 )
Ranked among companies with meaningful Current Ratio only.
TREX' s 10-Year Current Ratio Range
Min: 0.43  Med: 1.71 Max: 4.45
Current: 1.69
0.43
4.45
Quick Ratio 1.49
TREX's Quick Ratio is ranked higher than
69% of the 614 Companies
in the Global Building Materials industry.

( Industry Median: 1.09 vs. TREX: 1.49 )
Ranked among companies with meaningful Quick Ratio only.
TREX' s 10-Year Quick Ratio Range
Min: 0.11  Med: 0.98 Max: 2.57
Current: 1.49
0.11
2.57
Days Inventory 27.35
TREX's Days Inventory is ranked higher than
88% of the 655 Companies
in the Global Building Materials industry.

( Industry Median: 74.03 vs. TREX: 27.35 )
Ranked among companies with meaningful Days Inventory only.
TREX' s 10-Year Days Inventory Range
Min: 29.89  Med: 94.14 Max: 150.85
Current: 27.35
29.89
150.85
Days Sales Outstanding 106.32
TREX's Days Sales Outstanding is ranked lower than
80% of the 544 Companies
in the Global Building Materials industry.

( Industry Median: 58.85 vs. TREX: 106.32 )
Ranked among companies with meaningful Days Sales Outstanding only.
TREX' s 10-Year Days Sales Outstanding Range
Min: 1.84  Med: 25.59 Max: 61.27
Current: 106.32
1.84
61.27

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 35.02
TREX's Price/Net Current Asset Value is ranked lower than
93% of the 275 Companies
in the Global Building Materials industry.

( Industry Median: 4.63 vs. TREX: 35.02 )
Ranked among companies with meaningful Price/Net Current Asset Value only.
TREX' s 10-Year Price/Net Current Asset Value Range
Min: 44.8  Med: 110.70 Max: 473.11
Current: 35.02
44.8
473.11
Price/Tangible Book 8.46
TREX's Price/Tangible Book is ranked lower than
95% of the 581 Companies
in the Global Building Materials industry.

( Industry Median: 1.41 vs. TREX: 8.46 )
Ranked among companies with meaningful Price/Tangible Book only.
TREX' s 10-Year Price/Tangible Book Range
Min: 0.9  Med: 4.09 Max: 14.46
Current: 8.46
0.9
14.46
Price/Projected FCF 3.46
TREX's Price/Projected FCF is ranked lower than
88% of the 323 Companies
in the Global Building Materials industry.

( Industry Median: 1.10 vs. TREX: 3.46 )
Ranked among companies with meaningful Price/Projected FCF only.
TREX' s 10-Year Price/Projected FCF Range
Min: 1.98  Med: 5.78 Max: 119.19
Current: 3.46
1.98
119.19
Price/Median PS Value 2.13
TREX's Price/Median PS Value is ranked lower than
89% of the 625 Companies
in the Global Building Materials industry.

( Industry Median: 1.08 vs. TREX: 2.13 )
Ranked among companies with meaningful Price/Median PS Value only.
TREX' s 10-Year Price/Median PS Value Range
Min: 0.27  Med: 1.70 Max: 4.9
Current: 2.13
0.27
4.9
Price/Peter Lynch Fair Value 0.95
TREX's Price/Peter Lynch Fair Value is ranked lower than
54% of the 153 Companies
in the Global Building Materials industry.

( Industry Median: 0.87 vs. TREX: 0.95 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
TREX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.92  Med: 1.89 Max: 4.83
Current: 0.95
0.92
4.83
Price/Graham Number 2.98
TREX's Price/Graham Number is ranked lower than
89% of the 455 Companies
in the Global Building Materials industry.

( Industry Median: 1.02 vs. TREX: 2.98 )
Ranked among companies with meaningful Price/Graham Number only.
TREX' s 10-Year Price/Graham Number Range
Min: 1.65  Med: 2.68 Max: 15.1
Current: 2.98
1.65
15.1
Earnings Yield (Greenblatt) (%) 6.64
TREX's Earnings Yield (Greenblatt) (%) is ranked higher than
52% of the 673 Companies
in the Global Building Materials industry.

( Industry Median: 6.10 vs. TREX: 6.64 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
TREX' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.1  Med: 2.50 Max: 10.2
Current: 6.64
0.1
10.2
Forward Rate of Return (Yacktman) (%) 31.06
TREX's Forward Rate of Return (Yacktman) (%) is ranked higher than
87% of the 342 Companies
in the Global Building Materials industry.

( Industry Median: 6.45 vs. TREX: 31.06 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
TREX' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -26  Med: 1.90 Max: 31.8
Current: 31.06
-26
31.8

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 438 497 566
EPS($) 1.66 2.08 2.50
EPS without NRI($) 1.66 2.08 2.50

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
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Expect Beaten-Down Trex To Snap Back Aug 10 2015
TREX CO INC Financials Aug 07 2015
Trex's Q2 Earnings & Revenues Miss Estimates, Shares Fall - Analyst Blog Aug 06 2015
10-Q for Trex Co., Inc. Aug 05 2015
Why Did Trex Company Plunge Over 14% Today? Aug 03 2015
Edited Transcript of TREX earnings conference call or presentation 3-Aug-15 2:00pm GMT Aug 03 2015
Trending Now: TREX Aug 03 2015
Trex Stock Falls on Earnings Miss Aug 03 2015
Trex Co Inc Earnings Call scheduled for 10:00 am ET today Aug 03 2015
TREX CO INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements... Aug 03 2015
Trex misses Street 2Q forecasts Aug 03 2015
Trex misses Street 2Q forecasts Aug 03 2015
Trex Company Continues Record-Setting Year Aug 03 2015
Q2 2015 Trex Co Inc Earnings Release - Before Market Open Aug 03 2015

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