Trex Co IncFind Ratings Reports
TREX CO INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TREX CO INC has average liquidity. Currently, the Quick Ratio is 1.01 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.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.88% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||146.45||136.78|
|Net Income ($mil)||23.28||18.72|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||2.55||4.15|
|Total Assets ($mil)||241.8||276.76|
|Total Debt ($mil)||43.0||37.5|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||44.38||41.1|
|Return on Assets||24.19||18.18|
|Return on Equity||52.11||33.22|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||29.35||32.05|
|Div / share||0.0||0.0|
|Book value / share||3.83||4.73|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||272777.0||319969.0|
BUY. The current P/E ratio indicates a discount compared to an average of 30.47 for the Building Products industry and a premium compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 14.97 indicates a significant premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 31.24. 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 29.37||Peers 30.47||TREX 16.70||Peers 15.27|
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.
Average. 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 valuation on par to its peers.
|TREX 21.61||Peers 20.68||TREX 0.57||Peers 0.75|
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.
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 discount to its peers.
|TREX 14.97||Peers 31.24||TREX 24.20||Peers 179.77|
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 3.64||Peers 1.79||TREX 7.97||Peers 12.59|
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