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.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||94.02||95.5|
|Net Income ($mil)||3.74||8.91|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||2.53||3.84|
|Total Assets ($mil)||232.63||185.87|
|Total Debt ($mil)||48.5||3.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||27.38||35.77|
|Return on Assets||19.41||27.69|
|Return on Equity||41.81||48.05|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||30.87||32.0|
|Div / share||0.0||0.0|
|Book value / share||3.5||3.35|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||327563.0||514041.0|
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.
|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.
|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.
|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.
|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
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