Trex CoMEX:TREX1 87 ROE % is 24.22% as of Mar. 2026, which is 28% below its 10-year median of 33.46. 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 1,737 Construction companies, Trex Co ranks better than 83.82% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Trex Co's annualized net income for the quarter that ended in Mar. 2026 was MXN4,429 Mil. Trex Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN18,289 Mil. Therefore, Trex Co's annualized ROE % for the quarter that ended in Mar. 2026 was 24.22%.
The historical rank and industry rank for Trex Co's ROE % or its related term are showing as below:
MEX:TREX1'
s ROE % Range Over the Past 10 Years
Min: 19.25 Med: 33.46 Max: 54.14
Current: 19.25
During the past 13 years, Trex Co's highest ROE % was 54.14%. The lowest was 19.25%. And the median was 33.46%.
MEX:TREX1's ROE % is ranked better than 83.82% of 1737
companies
in the Construction industry
Industry Median: 6.74
vs MEX:TREX1: 19.25
Trex Co (MEX:TREX1) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Trex Co ROE % Related Terms
Trex Co ROE % Historical Data
* Premium members only.
The historical data trend for Trex Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, Trex Co's ROE % distribution charts can be found below:
* The bar in red indicates where Trex Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Trex Co (MEX:TREX1) has a ROE % of 24.22% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Trex Co and its competitors. This is 28% below median its historical median of 33.46. Over the past decade, Trex Co's ROE % has ranged from 19.25 to 54.14. According to the industry distribution chart, Trex Co ranks #281 out of 1737 companies in the Construction industry, placing it in the top 16.2%.
Is Trex Co's ROE % too high?
Trex Co's current ROE % of 24.22% is 28% below median its 10-year median of 33.46. Over the past 10 years, this metric has ranged from a low of 19.25 to a high of 54.14. The Construction industry median ROE % is 6.74. Trex Co's value of 24.22% is 259.3% above this industry median. Based on the distribution chart, Trex Co ranks #281 out of 1737 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 ROE % compare to FBIN and LPX?
According to the Construction industry distribution chart, Trex Co ranks #281 out of 1737 companies for ROE %. This places Trex Co in the top 16% of its industry — outperforming the majority of peers. The industry median ROE % is 6.74. Trex Co's value of 24.22% is 259.3% above this benchmark. Historically, Trex Co's own ROE % has ranged from 19.25 to 54.14 over the past decade. While the company's 10-year median is 33.46 vs. the industry median of 6.74, 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.74, based on 1,737 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trex Co's current ROE % of 24.22% is 259.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Trex Co and its competitors. For the Construction industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trex Co's current ROE % is 24.22%, which is 28% below median its own 10-year median of 33.46. 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 ROE % of 24.22%. 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 ROE % is 24.22%, which is 28% below median its 10-year median of 33.46 and 259.3% above the Construction industry median of 6.74. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Trex Co (MEX:TREX1), the current ROE % is 24.22% 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:
ROE %: 24.22% (28% below median its 10-year median of 33.46)
GF Value™: MXN991.29 vs. price of MXN699.00 (29.5% below fair value)
Industry Position: 259.3% above the Construction median (#281 of 1737)
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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