Trex Company Stock Fair Value – Trex Company,’s Stock Performance: A Reflection of Its Fundamentals?

January 4, 2024

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Trex Company ($NYSE:TREX), Inc. is a manufacturer of premium outdoor building materials including decking, railing, fencing, and outdoor lighting. But does this recent stock performance reflect the company’s underlying fundamentals or is it simply a case of market speculation? Investors are keen to assess a company’s stock performance in relation to its underlying fundamentals such as profitability, cash flow, and other financial metrics. In the case of Trex Company, Inc., the company has enjoyed robust revenue growth in recent years, bolstered by strong consumer demand for its products. Furthermore, the company has maintained a healthy balance sheet with minimal debt, which further underpins its strong financial performance. With a bright outlook and strong fundamentals, investors might wonder if Trex Company, Inc.’s stock performance is indeed reflective of its underlying fundamentals. In conclusion, it appears that Trex Company, Inc.’s stock performance is reflective of its solid fundamentals. The company has seen significant revenue growth and generated consistent profits year-over-year.

Additionally, the company’s balance sheet is healthy and robust, with minimal debt. With these factors in mind, Trex Company, Inc.’s stock looks set to continue its upward climb in the coming years.

Price History

Trex Company, Inc., a leading provider of composite decking, railing, and outdoor living products, has been under scrutiny recently as their stock performance has been shaky. On Tuesday, the stock opened at $81.8 and closed at $80.7, down by 2.5% from the previous closing price of $82.8. The short-term stock performance of Trex Company could be due to a variety of factors, from market sentiment to company news.

However, investors should look to Trex Company’s fundamentals to get a more comprehensive picture. Looking at the company’s receipts and cash flows, their financial position remains strong as they have generated consistent revenue growth over the years and have maintained a healthy balance sheet.

Additionally, Trex Company has been able to successfully navigate the current pandemic climate by shifting their focus to e-commerce, which has allowed the company to remain profitable and competitive in the market. Overall, Trex Company’s fundamentals remain strong and are unlikely to be the main drivers of its stock performance. It is more likely that short-term market sentiment and news-driven events are more responsible for the stock’s recent downtrend. Investors should pay attention to these factors when making any decisions on Trex Company stock. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • 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%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • 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
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Trex Company Stock Fair Value

    We at GoodWhale have conducted an analysis of TREX COMPANY‘s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of TREX COMPANY share to be around $77.5. Currently, TREX COMPANY stock is traded at $80.7, a fair price that is slightly overvalued by 4.1%. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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 Company Inc. has been performing well in the stock market, with its share price climbing significantly in the past few months. This positive performance is likely a result of strong fundamentals, such as a well-established product line and competitive pricing. Analysts point to the company’s strong balance sheet, healthy operating cash flows, and consistent revenue growth as factors that have driven its stock price higher. The company’s financial position has been supported by prudent capital management practices and a sound investment strategy.

    Additionally, Trex’s management has taken steps to diversify its operations and limit its exposure to industry-specific risks. Overall, the recent stock performance of Trex Company Inc. is likely tethered to its strong fundamentals and strategic focus.

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