TREX
Industrials · Building Products & Equipment
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.
- Forward P/E (25.5×) is lower than trailing P/E (26.3×) — analysts expect earnings to improve
- Healthy profit margin of 16.3%
- ROE of 20.1% shows management efficiently converts equity into profit
- P/E of 26.3× 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 ClaudeAI-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)
26.3
Fwd P/E
25.5
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $47.37
Graham Number
√(22.5 × EPS × Book Value)
$19.70
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/dayHigh 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