Trex Co (Trex Co) GF Value Rank : 3 (As of Apr. 25, 2024)

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What is Trex Co GF Value Rank?

Trex Co has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Trex Co's GF Value Rank

For the Building Products & Equipment subindustry, Trex Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Trex Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Trex Co's GF Value Rank falls into.

Trex Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Trex Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Trex Co (Trex Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Trex Co Inc (NYSE:TREX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TREX1:Mexico TRR:Germany

Address

160 Exeter Drive, Winchester, VA, USA, 22603-8605

Website

https://www.trex.com

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 two reportable segments Trex Residential and Trex Commercial. The majority of revenue is derived from the Trex Residential segment.

Executives

Brenda Lovcik	officer: SVP, Chief Financial Officer	2500 TREX WAY, C/O TREX COMPANY, INC., WINCHESTER VA 22601
Amy M. Fernandez	officer: VP, GC and Secretary	2500 TREX WAY, WINCHESTER VA 22601
Melkeya Mcduffie	director	C/O CLEAN HARBORS INC., 42 LONGWATER DRIVE, NORWELL MA 02061
Michael F Golden	director	2100 ROOSEVELT AVENUE, SPRINGFIELD MA 01104
Bryan Horix Fairbanks	officer: VP and CFO	160 EXETER DRIVE, WINCHESTER VA 22603
Adam Dante Zambanini	officer: Vice President, Marketing	C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
William R. Gupp	officer: V.P. & General Counsel	C/O TREX COMPANY, 160 EXETER DRIVE, WINCHESTER VA 22603
Dennis Charles Schemm	officer: VP and Chief Financial Officer	CONTINENTAL BUILDING PRODUCTS, 12950 WORLDGATE DRIVE, HERNDON VA 20170
Richard E Posey	director	C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
Patricia B Robinson	director
James E Cline	officer: Vice President and CFO	C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603
Jay M Gratz	director	RYERSON INC, 2621 W 15TH PLACE, CHICAGO IL 60608
Gena C Lovett	director	11324 FOX CREEK FARM WAY, GREAT FALLS VA 22066
Christopher Paul Gerhard	officer: Vice President, Sales	160 EXETER DRIVE, WINCHESTER VA 22603
Kristine L Juster	director	1600 ROYAL ST, JASPER IN 47549