Trex Co (BSP:T2RE34) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BSP:T2RE34 Trex Co Inc BSP:T2RE34
59 GF Score
Price R$14.52
GF Value R$20.00
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Trex Co Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Trex Co is: Low Risk: Strong fundamentals, worth long-term holding.

Trex Co  (BSP:T2RE34) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Trex Co Risk Assessment Related Terms

BSP:T2RE34 vs GFF, LPX, FBIN: Risk Assessment Comparison

For the Building Products & Equipment subindustry, Trex Co's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Construction Industry

For the Construction industry and Industrials sector, Trex Co's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Trex Co's Risk Assessment falls into.


BSP:T2RE34
59GF Score
Trex Co Inc BSP:T2RE34
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Trex Co (BSP:T2RE34) Overvalued in 2026?

Based on GuruFocus' analysis, Trex Co stock appears to be undervalued. The current stock price of R$14.52 is trading 27.4% below its estimated GF Value™ of R$20.00. GuruFocus considers Trex Co to be Modestly Undervalued.

Key valuation signals for BSP:T2RE34:

  • Risk Assessment:
  • GF Value™: R$20.00 vs. price of R$14.52 (27.4% below fair value)
  • GF Score™: 59/100 with 4 warning signs

No single metric tells the full story. See the BSP:T2RE34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Trex Co Business Description

Other Exchanges TREX:USATRR:Germany
Address 2500 Trex Way, Winchester, VA, USA, 22601
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.
59GF Score

Get the complete analysis for BSP:T2RE34

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$14.52
Price
R$20.00
GF Value