TREX CO INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TREX CO INC has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.71% 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||Q4 FY15||Q4 FY14|
|Net Sales ($mil)||89.2||74.2|
|Net Income ($mil)||8.09||5.15|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||6.0||9.54|
|Total Assets ($mil)||212.0||195.82|
|Total Debt ($mil)||7.0||0.0|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||39.71||40.96|
|Return on Assets||22.68||21.2|
|Return on Equity||41.29||36.61|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||30.91||32.02|
|Div / share||0.0||0.0|
|Book value / share||3.77||3.54|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||468731.0||337353.0|
BUY. TREX CO INC's P/E ratio indicates a premium compared to an average of 27.16 for the Building Products industry and a premium compared to the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 12.84 indicates a significant premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 13.95. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, TREX CO INC seems to be trading at a premium to investment alternatives within the industry.
|TREX 32.05||Peers 27.16||TREX 23.88||Peers 15.50|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
TREX is trading at a premium 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 20.60||Peers 19.98||TREX 0.97||Peers 0.90|
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 12.84||Peers 13.95||TREX 19.36||Peers 408.09|
Average. 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 valuation on par with 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 3.39||Peers 1.68||TREX 12.54||Peers 17.89|
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
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.