TREX CO INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. TREX CO INC has average liquidity. Currently, the Quick Ratio is 1.00 which shows that technically this company has the 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 increased by 14.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||95.5||74.05|
|Net Income ($mil)||8.91||-15.3|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||3.84||19.58|
|Total Assets ($mil)||185.87||173.46|
|Total Debt ($mil)||3.0||0.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||35.77||8.18|
|Return on Assets||27.69||9.15|
|Return on Equity||48.05||16.92|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||32.0||33.36|
|Div / share||0.0||0.0|
|Book value / share||3.35||2.81|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||203519.0||301093.0|
BUY. TREX CO INC's P/E ratio indicates a discount compared to an average of 40.38 for the Building Products industry and a significant premium compared to the S&P 500 average of 19.92. To use another comparison, its price-to-book ratio of 15.36 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 72.88. 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 33.07||Peers 40.38||TREX 44.41||Peers 22.04|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
TREX is trading at a discount to 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 23.27||Peers 26.71||TREX NM||Peers 1.13|
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.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|TREX 15.36||Peers 72.88||TREX 253.40||Peers 117.81|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
TREX is expected to have an earnings growth rate that significantly exceeds its peers.
|TREX 4.32||Peers 1.57||TREX 16.62||Peers 38.64|
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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