Trex CoMEX:TREX1 +19.46%77 Gross Margin % is 40.48% as of Mar. 2026, which is 1% below its 10-year median of 40.97. GuruFocus rates MEX:TREX1 with a GF Score™ of 77/100 and a GF Value™ of MXN1,194.59 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,718 Construction companies, Trex Co ranks better than 81.9% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Trex Co's Gross Profit for the
three
months ended in Mar. 2026 was MXN2,507 Mil. Trex Co's Revenue for the
three
months ended in Mar. 2026 was MXN6,192 Mil. Therefore, Trex Co's Gross Margin % for the quarter that ended in Mar. 2026 was 40.48%.
The historical rank and industry rank for Trex Co's Gross Margin % or its related term are showing as below:
MEX:TREX1'
s Gross Margin % Range Over the Past 10 Years
Min: 36.53 Med: 40.97 Max: 43.59
Current: 39.17
During the past 13 years, the highestGross Margin % of Trex Co was 43.59%. The lowest was 36.53%. And the median was 40.97%.
MEX:TREX1's Gross Margin % is ranked better than 81.9% of 1718
companies
in the Construction industry
Industry Median: 20.75
vs MEX:TREX1: 39.17
Trex Co had a gross margin of 40.48% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Trex Co was 0.80% per year.
Trex Co (MEX:TREX1) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Trex Co had a gross margin of 40.48% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Trex Co Gross Margin % Related Terms
Trex Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Trex Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TREX1 vs FBIN, LPX, GFF: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Trex Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trex Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Trex Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trex Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Trex Co (MEX:TREX1) has a Gross Margin % of 40.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Trex Co and its competitors. This is near median its historical median of 40.97. Over the past decade, Trex Co's Gross Margin % has ranged from 36.53 to 43.59. According to the industry distribution chart, Trex Co ranks #311 out of 1718 companies in the Construction industry, placing it in the top 18.1%.
Is Trex Co's Gross Margin % too high?
Trex Co's current Gross Margin % of 40.48% is near median its 10-year median of 40.97. Over the past 10 years, this metric has ranged from a low of 36.53 to a high of 43.59. The Construction industry median Gross Margin % is 20.75. Trex Co's value of 40.48% is 95.1% above this industry median. Based on the distribution chart, Trex Co ranks #311 out of 1718 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Trex Co has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trex Co's Gross Margin % compare to FBIN and LPX?
According to the Construction industry distribution chart, Trex Co ranks #311 out of 1718 companies for Gross Margin %. This places Trex Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.75. Trex Co's value of 40.48% is 95.1% above this benchmark. Historically, Trex Co's own Gross Margin % has ranged from 36.53 to 43.59 over the past decade. While the company's 10-year median is 40.97 vs. the industry median of 20.75, Trex Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.75, based on 1,718 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trex Co's current Gross Margin % of 40.48% is 95.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Trex Co and its competitors. For the Construction industry, the median Gross Margin % is 20.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trex Co's current Gross Margin % is 40.48%, which is near median its own 10-year median of 40.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trex Co stock overvalued right now?
Based on GuruFocus' analysis, Trex Co (MEX:TREX1) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,194.59, compared to a current price of MXN835.00 — trading 30.1% below its estimated fair value. The current Gross Margin % is 40.48%, which is near median its 10-year median of 40.97 and 95.1% above the Construction industry median of 20.75. Trex Co's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Trex Co (MEX:TREX1), the current Gross Margin % is 40.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trex Co (MEX:TREX1) Overvalued in 2026?
Based on GuruFocus' analysis, Trex Co stock appears to be undervalued.
The current stock price of MXN835.00 is trading 30.1% below its estimated GF Value™ of MXN1,194.59.
GuruFocus considers Trex Co to be Significantly Undervalued.
Key valuation signals for MEX:TREX1:
Gross Margin %: 40.48% (near median its 10-year median of 40.97)
GF Value™: MXN1,194.59 vs. price of MXN835.00 (30.1% below fair value)
Industry Position: 95.1% above the Construction median (#311 of 1718)
No single metric tells the full story. See the MEX:TREX1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trex Co Inc is a manufacturer of wooden alternative decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in one reportable segment i.e. Trex Residential.
77GF Score
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