Trex CoMEX:TREX1 87 Operating Margin % is 24.32% as of Mar. 2026, which is 4% below its 10-year median of 25.22. GuruFocus rates MEX:TREX1 with a GF Score™ of 87/100 and a GF Value™ of MXN969.77. The stock has 4 warning signs investors should review. Among 1,762 Construction companies, Trex Co ranks better than 92.4% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Trex Co's Operating Income for the
three
months ended in Mar. 2026 was MXN1,506 Mil. Trex Co's Revenue for the
three
months ended in Mar. 2026 was MXN6,192 Mil. Therefore, Trex Co's Operating Margin % for the quarter that ended in Mar. 2026 was 24.32%.
Warning Sign:
Trex Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Trex Co's Operating Margin % or its related term are showing as below:
MEX:TREX1'
s Operating Margin % Range Over the Past 10 Years
Min: 21.67 Med: 25.22 Max: 27.96
Current: 22.06
MEX:TREX1's Operating Margin % is ranked better than 92.4% of 1762
companies
in the Construction industry
Industry Median: 5.895
vs MEX:TREX1: 22.06
Trex Co's 5-Year Average Operating Margin % Growth Rate was -2.10% per year.
Trex Co's Operating Income for the
three
months ended in Mar. 2026 was MXN1,506 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN4,788 Mil.
Trex Co (MEX:TREX1) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Trex Co Operating Margin % Related Terms
Trex Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Trex Co's Operating 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: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Trex Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Trex Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Trex Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Trex Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Trex Co (MEX:TREX1) has a Operating Margin % of 24.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Trex Co and its competitors. This is near median its historical median of 25.22. Over the past decade, Trex Co's Operating Margin % has ranged from 21.67 to 27.96. According to the industry distribution chart, Trex Co ranks #134 out of 1762 companies in the Construction industry, placing it in the top 7.6%.
Is Trex Co's Operating Margin % too high?
Trex Co's current Operating Margin % of 24.32% is near median its 10-year median of 25.22. Over the past 10 years, this metric has ranged from a low of 21.67 to a high of 27.96. The Construction industry median Operating Margin % is 5.90. Trex Co's value of 24.32% is 312.6% above this industry median. Based on the distribution chart, Trex Co ranks #134 out of 1762 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 87/100, reflecting its overall financial health beyond just this single metric.
How does Trex Co's Operating Margin % compare to FBIN and LPX?
According to the Construction industry distribution chart, Trex Co ranks #134 out of 1762 companies for Operating Margin %. This places Trex Co in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.90. Trex Co's value of 24.32% is 312.6% above this benchmark. Historically, Trex Co's own Operating Margin % has ranged from 21.67 to 27.96 over the past decade. While the company's 10-year median is 25.22 vs. the industry median of 5.90, 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.90, based on 1,762 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trex Co's current Operating Margin % of 24.32% is 312.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Trex Co and its competitors. For the Construction industry, the median Operating Margin % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trex Co's current Operating Margin % is 24.32%, which is near median its own 10-year median of 25.22. 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?
Trex Co (MEX:TREX1) has a current Operating Margin % of 24.32%. The stock's GF Value™ is MXN969.77, compared to a current price of MXN699.00 — trading 27.9% below its estimated fair value. The current Operating Margin % is 24.32%, which is near median its 10-year median of 25.22 and 312.6% above the Construction industry median of 5.90. Trex Co's overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Trex Co (MEX:TREX1), the current Operating Margin % is 24.32% 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 MXN699.00 is trading 27.9% below its estimated GF Value™ of MXN969.77.
Key valuation signals for MEX:TREX1:
Operating Margin %: 24.32% (near median its 10-year median of 25.22)
GF Value™: MXN969.77 vs. price of MXN699.00 (27.9% below fair value)
Industry Position: 312.6% above the Construction median (#134 of 1762)
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.
87GF Score
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