Stock MarketROI
Open
TREX

TREX

Industrials · Building Products & Equipment

$47.50+2.44%
Mkt Cap: $4.94B

Performance

TREX (TREX) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

TREX (TREX) operates in the Building Products & Equipment space within the Industrials sector. With a market cap of $4.9B, it qualifies as a small-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case3
  • Forward P/E (25.6×) is lower than trailing P/E (26.4×) — analysts expect earnings to improve
  • Healthy profit margin of 16.3%
  • ROE of 20.1% shows management efficiently converts equity into profit
Bear Case4
  • P/E of 26.4× is above average — valuation requires continued strong growth to justify
  • High debt-to-equity of 43.70× increases financial risk, especially with elevated interest rates
  • No dividend history — total return depends entirely on price appreciation
  • High beta of 1.51 — this stock is significantly more volatile than the broader market

Verdict

Caution

More risks than strengths. Consider waiting for fundamentals to improve before adding.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

This stock does not pay dividends.

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Aug 4, 2026

49

days

EPS (TTM)

$1.80

P/E (TTM)

26.4

Fwd P/E

25.6

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$4.94B
P/E Ratio26.39
Forward P/E25.60
P/B Ratio
PEG Ratio1.00
EPS (TTM)$1.80

Trading

Open
Day High
Day Low
52W High$68.78
52W Low$29.77
Volume
Avg Volume (3M)1,879,661
Beta1.51

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin16.25%
Operating Margin24.32%
ROE20.08%
ROA9.63%
Revenue Growth1.00%
Earnings Growth3.60%

Balance Sheet

Total Revenue$1.18B
Total Debt$435.20M
Debt / Equity43.70
Current Ratio1.02
Free Cash Flow$96.99M

Fair Value Estimates

Current price: $47.50

Graham Number

√(22.5 × EPS × Book Value)

$19.70

-58.5% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

N/A

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

6/10

75% score

Pays dividends

No dividend history found

Dividend consistency (5Y+)

Uninterrupted dividend payments for at least 5 years

ROE above 10%

20.1%

Return on equity — measures how efficiently capital is used

Positive profit margin

16.3%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+1.0%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+3.6%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

43.70×

Low financial leverage reduces risk of distress

Current ratio above 1

1.02×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$89M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Industrials

About TREX

Trex Company, Inc. manufactures and sells composite decking and railing products in the United States. It offers decking products and accessories that can be used for protection against fading, staining, mold, and scratching, including Trex Transcend, which are decking products that can also be used as cladding; Trex Signature; Trex Transcend Lineage; Trex Select; Trex Enhance; Trex Hideaway fastener collection; and Trex DeckLighting, an outdoor lighting system that includes a post cap, deck rail, riser, a soffit, and a recessed deck lights. The company also offers railing products, such as Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, Trex Enhance Railing; and fencing products, which includes Trex Seclusions that consists of structural posts, bottom rails, pickets, top rails, and decorative post caps. In addition, it acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Protect joist, beam and rim tape, a self-adhesive butyl tape that protects wooden deck framing/substructure elements; Trex RainEscape Soffit Light, a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck; Trex Seal Ledger Flashing Tape, butyl flashing tape with an aluminum liner; Trex Pergola, Pergolas made from low maintenance aluminum reinforced cellular PVC; Trex Lattice outdoor boards; Trex Cornhole boards; Trex Blade, a specialty saw blade for wood-alternative composite decking; Trex SpiralStairs; and Trex Outdoor Kitchen cabinetry. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.

Sector

Industrials

Industry

Building Products & Equipment

Location

Winchester, United States

Employees

1,839