Obermatt

Trex

NYQ:TREX · US89531P1057
Building ProductsMedium

360

25
EV / EBIT25
Price / Owner Earnings14
Owner Earnings Yield27
Dividend Yield1
Price/Sales13
EV / Gross Profit18
Price/Book44
Return on Capital60
Cash Return on Capital37
Return on Equity75
EBIT Margin96
Gross Profitability40
Cash Conversion73
Accruals67
Owner Earnings Margin55
Sales growth29
Profit Growth48
Long-Term EPS Growth22
Reinvestment9
Price momentum4
Debt load72
Refinancing43
Debt Payback31
Liquidity76
Analyst ratings28
Opinion Changes50
Price Target Upside10
Market mood78
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Trex clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryBuilding Products
SizeMedium
TypePublic Company
ExchangeNYSE
Founded1998
Employees667
Websitetrex.com
ISINUS89531P1057
Last UpdateApr 2, 2026
Themes
ClimateTechHome Improvement

Description

Trex Company, Inc. (Trex) operates as a manufacturer of composite decking and railing products, which are marketed under the brand name Trex and manufactured in the United States. Business and Growth Strategies Trex continues to reinvent and redefi…

Analysis

Hope premium

Trex Company, Inc. carries what we call a hope premium: an average business trading at an ambitious price.

The price is expensive. You pay 53.1× its owner earnings: the cash an owner could take out each year, which is in the historically expensive zone. At today's price, the market is assuming roughly 19% yearly growth; analysts expect 3%. The market is pricing in far more than analysts expect: heroic expectations.

The trajectory is tepid and the balance sheet is adequate. The company scores 12/20 on our value-creation score: creating some value.

Nothing is flagged here: no red or amber gates, no divergence between profits and cash. That is itself information: the numbers are straightforward. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
30
2023202420252026

All-time high

47

Jan 2024

All-time low

11

Mar 2026

Average rank

30

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
13
6
1
3
Price/Earnings
25
24
7
7
Price/Book
44
11
3
3
Dividend Yield
1
1
1
1
Value (overall)
8
3
1
1

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →