Trex CoMEX:TREX1 87 ROA % is 15.44% as of Mar. 2026, which is 39% below its 10-year median of 25.24. GuruFocus rates MEX:TREX1 with a GF Score™ of 87/100 and a GF Value™ of MXN991.29. The stock has 4 warning signs investors should review. Among 1,776 Construction companies, Trex Co ranks better than 92.29% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Trex Co's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN4,429 Mil.
Trex Co's average Total Assets over the quarter that ended in Mar. 2026 was MXN28,682 Mil. Therefore, Trex Co's annualized ROA % for the quarter that ended in Mar. 2026 was 15.44%.
The historical rank and industry rank for Trex Co's ROA % or its related term are showing as below:
MEX:TREX1'
s ROA % Range Over the Past 10 Years
Min: 12.24 Med: 25.24 Max: 34.74
Current: 12.24
During the past 13 years, Trex Co's highest ROA % was 34.74%. The lowest was 12.24%. And the median was 25.24%.
MEX:TREX1's ROA % is ranked better than 92.29% of 1776
companies
in the Construction industry
Industry Median: 2.795
vs MEX:TREX1: 12.24
Trex Co (MEX:TREX1) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Trex Co ROA % Related Terms
Trex Co ROA % Historical Data
* Premium members only.
The historical data trend for Trex Co's ROA % 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.
For the Building Products & Equipment subindustry, Trex Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Construction Industry
For the Construction industry and Industrials sector, Trex Co's ROA % distribution charts can be found below:
* The bar in red indicates where Trex Co's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Trex Co (MEX:TREX1) has a ROA % of 15.44% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Trex Co and its competitors. This is 39% below median its historical median of 25.24. Over the past decade, Trex Co's ROA % has ranged from 12.24 to 34.74. According to the industry distribution chart, Trex Co ranks #137 out of 1776 companies in the Construction industry, placing it in the top 7.7%.
Is Trex Co's ROA % too high?
Trex Co's current ROA % of 15.44% is 39% below median its 10-year median of 25.24. Over the past 10 years, this metric has ranged from a low of 12.24 to a high of 34.74. The Construction industry median ROA % is 2.80. Trex Co's value of 15.44% is 452.4% above this industry median. Based on the distribution chart, Trex Co ranks #137 out of 1776 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 ROA % compare to FBIN and LPX?
According to the Construction industry distribution chart, Trex Co ranks #137 out of 1776 companies for ROA %. This places Trex Co in the top 8% of its industry — outperforming the majority of peers. The industry median ROA % is 2.80. Trex Co's value of 15.44% is 452.4% above this benchmark. Historically, Trex Co's own ROA % has ranged from 12.24 to 34.74 over the past decade. While the company's 10-year median is 25.24 vs. the industry median of 2.80, 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 ROA % for a Construction company?
The median ROA % among Construction companies is 2.80, based on 1,776 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trex Co's current ROA % of 15.44% is 452.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Trex Co and its competitors. For the Construction industry, the median ROA % is 2.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trex Co's current ROA % is 15.44%, which is 39% below median its own 10-year median of 25.24. 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 ROA % of 15.44%. The stock's GF Value™ is MXN991.29, compared to a current price of MXN699.00 — trading 29.5% below its estimated fair value. The current ROA % is 15.44%, which is 39% below median its 10-year median of 25.24 and 452.4% above the Construction industry median of 2.80. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Trex Co (MEX:TREX1), the current ROA % is 15.44% 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 29.5% below its estimated GF Value™ of MXN991.29.
Key valuation signals for MEX:TREX1:
ROA %: 15.44% (39% below median its 10-year median of 25.24)
GF Value™: MXN991.29 vs. price of MXN699.00 (29.5% below fair value)
Industry Position: 452.4% above the Construction median (#137 of 1776)
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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