Trex Company Intrinsic Value – Trex Co. Stocks Show Signs of Renewed Strength in Technical Analysis
November 7, 2023
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Trex ($NYSE:TREX) Co. has been showing signs of renewed strength in the stock market, according to recent technical analysis. The company, which specializes in the production of low-maintenance composite decking, railing, and other outdoor products, has seen its stock value increase steadily in recent months. As a leader in the composite decking industry, Trex Co. has established itself as a reliable producer of outdoor products that require low maintenance. Its innovative approach to design and production has resulted in a product line that is both aesthetically pleasing and highly durable. The company’s products are also made with environmentally friendly materials, making them a viable choice for those looking for an eco-friendly decking solution.
In addition to its strong stock performance, Trex Co. has also seen impressive growth in its earnings over the past year. This growth can be attributed to an increasing demand for its products, as well as a strong backlog of orders that have resulted in increased revenue for the company. With a solid outlook and strong fundamentals, Trex Co. is well-positioned to capitalize on the growing demand for its products, and its stocks are likely to continue showing signs of technical strength in the future.
Price History
Monday was a volatile day for TREX COMPANY stocks, as the opening price of $62.5 quickly fell to a closing price of $60.2, representing a 4.0% drop from the previous closing price of $62.7. Technical analysis of the stock performance indicates that the company’s shares are showing signs of renewed strength, with overall prices trending upward. Despite the single-day decrease in stock value on Monday, long-term indicators suggest that Trex Co. stocks are likely to experience growth and stability in the coming weeks and months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trex Company. More…
| Total Revenues | Net Income | Net Margin |
| 1.09k | 193.51 | 18.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trex Company. More…
| Operations | Investing | Financing |
| 260.05 | -173.69 | -87.61 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trex Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 996.81 | 305.16 | 6.37 |
Key Ratios Snapshot
Some of the financial key ratios for Trex Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 7.8% | 25.5% |
| FCF Margin | ROE | ROA |
| 7.2% | 26.4% | 17.4% |
Analysis – Trex Company Intrinsic Value
At GoodWhale, we conducted an analysis of the wellbeing of TREX COMPANY. Our proprietary Valuation Line showed that the fair value of their share is around $84.8. However, currently the stock of TREX COMPANY is traded at $60.2, which is undervalued by 29.0%. This means that when compared to its fair value, TREX COMPANY is presently undervalued in the market, offering investors an opportunity to acquire its stock at a discounted rate. More…
Peers
The company’s products are made from recycled materials, such as plastic bags and wood fiber. Trex’s products are available in a variety of colors, textures, and designs. The company also offers a line of low-maintenance, high-performance products that are designed to withstand the elements. Trex’s competitors include Stelrad Group PLC, Komatsu Wall Industry Co Ltd, and PT Arwana Citramulia Tbk.
– Stelrad Group PLC ($LSE:SRAD)
The Stelrad Group PLC is a leading manufacturer of radiators and related products. The company has a market capitalization of 156.64 million as of 2022 and a return on equity of 24.55%. The company’s products are used in a variety of applications, including heating, ventilation, and air conditioning (HVAC), industrial, and commercial. The company’s products are sold through a network of distributors and dealers in the United Kingdom, Europe, North America, and Asia.
– Komatsu Wall Industry Co Ltd ($TSE:7949)
Komatsu Wall Industry Co Ltd has a market cap of 17.66B as of 2022. The company’s ROE is 3.05%. Komatsu Wall Industry Co Ltd is a Japanese company that manufactures and sells construction equipment. The company’s products include excavators, bulldozers, and cranes.
– PT Arwana Citramulia Tbk ($IDX:ARNA)
PT Arwana Citramulia Tbk is one of the largest publicly traded companies in Indonesia with a market capitalization of 6.18 trillion as of 2022. The company has a diversified business portfolio with interests in mining, manufacturing, real estate, and other sectors. The company’s return on equity is 29.56%, indicating that it is a profitable company. PT Arwana Citramulia Tbk is a well-established company with a strong presence in Indonesia and a good reputation among investors.
Summary
Trex Co. (NYSE: TREX) is a stock that has recently shown signs of renewed technical strength. Looking at the short-term price action, the stock has been range-bound over the past week, but has recently broken through resistance levels to the upside. Analyzing the volume, strong buying volume is accompanying the breakout.
However, despite the recent move higher, the stock still closed down on the day. Overall, the technicals indicate that there is a potential for further upside in the medium-term. Investors should watch for more buying volume and a close above the resistance levels. If this occurs, it could indicate that Trex Co. is in for a sustained rally. Conversely, if there is no follow-through buying or if the stock fails to break above resistance levels, investors may want to avoid Trex Co. until further signs of strength appear.
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