TREX CO INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. TREX CO INC has average liquidity. Currently, the Quick Ratio is 1.10 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.04% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||120.8||100.65|
|Net Income ($mil)||17.55||12.3|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||2.56||3.73|
|Total Assets ($mil)||289.88||274.0|
|Total Debt ($mil)||84.0||80.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||42.95||41.7|
|Return on Assets||16.13||9.24|
|Return on Equity||35.56||20.22|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||32.08||33.56|
|Div / share||0.0||0.0|
|Book value / share||4.1||3.73|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||293905.0||292191.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 53.10 for the Building Products industry and a significant premium compared to the S&P 500 average of 21.18. To use another comparison, its price-to-book ratio of 11.34 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 14.72. 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 32.07||Peers 53.10||TREX 26.58||Peers 21.39|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
TREX is trading at a significant 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 premium to its peers.
|TREX 20.85||Peers 24.93||TREX 0.83||Peers 1.52|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
TREX is trading at a valuation on par with its peers.
Discount. 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 significant discount to its peers.
|TREX 11.34||Peers 14.72||TREX 95.94||Peers 15.31|
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 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 3.62||Peers 1.71||TREX 22.29||Peers 29.84|
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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