This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Trex Co Inc
TREX : NYSE : Industrial Goods
$33.37 -0.46 | -1.36%
Today's Range: 33.32 - 34.72
Avg. Daily Volume: 328,800
02/10/16 - 4:01 PM ET

Financial Analysis


TREX CO INC's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. TREX CO INC has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)94.0295.5
EBITDA ($mil)10.0419.06
EBIT ($mil)6.4415.27
Net Income ($mil)3.748.91


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)2.533.84
Total Assets ($mil)232.63185.87
Total Debt ($mil)48.53.0
Equity ($mil)108.0107.12


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin27.3835.77
EBITDA Margin10.6819.95
Operating Margin6.8515.99
Sales Turnover1.832.05
Return on Assets19.4127.69
Return on Equity41.8148.05
Debt Q3 FY15 Q3 FY14
Current Ratio1.291.57
Debt/Capital0.310.03
Interest Expense0.160.17
Interest Coverage41.0490.88


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)30.8732.0
Div / share0.00.0
EPS0.120.28
Book value / share3.53.35
Institutional Own % n/a n/a
Avg Daily Volume327563.0514041.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 27.51 for the Building Products industry and a premium compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 10.49 indicates a significant premium versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 53.77. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, TREX CO INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TREX 26.04 Peers 27.51   TREX 45.39 Peers 15.79

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

TREX is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TREX is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TREX 19.12 Peers 20.17   TREX 0.89 Peers 0.99

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TREX is trading at a premium to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TREX trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TREX 10.49 Peers 53.77   TREX -9.33 Peers 8.98

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TREX is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TREX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TREX 2.66 Peers 1.52   TREX 11.77 Peers 17.65

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TREX is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TREX significantly trails its peers on the basis of sales growth

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs