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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Trex Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -1.17%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Trex Co's 3-Year ROIIC % or its related term are showing as below:
MEX:TREX1's 3-Year ROIIC % is ranked worse than 63.43% of 1690
companies
in the Construction industry
Industry Median: 4.63
vs MEX:TREX1: -1.17
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Trex Co 3-Year ROIIC % Related Terms
Trex Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Trex Co's 3-Year ROIIC % 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 GFF, LPX, FBIN: 3-Year ROIIC % Comparison
For the Building Products & Equipment subindustry, Trex Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Trex Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Trex Co's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Trex Co (MEX:TREX1) has a 3-Year ROIIC % of -1.17 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Trex Co and its competitors. According to the industry distribution chart, Trex Co ranks #1072 out of 1690 companies in the Construction industry, placing it in the top 63.4%.
Is Trex Co's 3-Year ROIIC % too high?
Trex Co's current 3-Year ROIIC % is -1.17. Based on the distribution chart, Trex Co ranks #1072 out of 1690 companies in the Construction industry, which is below the industry midpoint. Overall, Trex Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trex Co's 3-Year ROIIC % compare to GFF and LPX?
According to the Construction industry distribution chart, Trex Co ranks #1072 out of 1690 companies for 3-Year ROIIC %. This places Trex Co in the lower half of its industry. The industry median 3-Year ROIIC % is 4.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Construction company?
The median 3-Year ROIIC % among Construction companies is 4.63, based on 1,690 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Trex Co and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trex Co's current 3-Year ROIIC % is -1.17. 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?
Based on GuruFocus' analysis, Trex Co (MEX:TREX1) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,185.89, compared to a current price of MXN839.17 — trading 29.2% below its estimated fair value. The current 3-Year ROIIC % is -1.17. Trex Co's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Trex Co (MEX:TREX1), the current 3-Year ROIIC % is -1.17 as of Dec. 2025. 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 MXN839.17 is trading 29.2% below its estimated GF Value™ of MXN1,185.89.
GuruFocus considers Trex Co to be Modestly Undervalued.
Key valuation signals for MEX:TREX1:
3-Year ROIIC %: -1.17
GF Value™: MXN1,185.89 vs. price of MXN839.17 (29.2% below fair value)
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.
72GF Score
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