Trex Co Inc

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TREX : NYSE : Industrial Goods
$53.26 up 0.17 | 0.32%
Today's Range: 52.70 - 54.02
Avg. Daily Volume: 252,500
10/26/16 - 12:32 PM ET

Financial Analysis

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 ($mil)146.45136.78
EBITDA ($mil)40.233.74
EBIT ($mil)36.6230.05
Net Income ($mil)23.2818.72

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2.554.15
Total Assets ($mil)241.8276.76
Total Debt ($mil)43.037.5
Equity ($mil)112.27151.49

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin44.3841.1
EBITDA Margin27.4524.66
Operating Margin25.021.97
Sales Turnover1.911.54
Return on Assets24.1918.18
Return on Equity52.1133.22
Debt Q2 FY16 Q2 FY15
Current Ratio1.351.69
Interest Expense0.460.19
Interest Coverage79.95159.86

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)29.3532.05
Div / share0.00.0
Book value / share3.834.73
Institutional Own % n/a n/a
Avg Daily Volume246801.0288048.0


BUY. TREX CO INC's P/E ratio indicates a premium compared to an average of 28.86 for the Building Products industry and a premium compared to the S&P 500 average of 24.64. To use another comparison, its price-to-book ratio of 14.81 indicates a significant premium versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 36.31. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TREX 29.05 Peers 28.86   TREX 16.52 Peers 15.07

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TREX 21.30 Peers 20.23   TREX 0.56 Peers 0.61

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TREX 14.81 Peers 36.31   TREX 24.20 Peers 172.56

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TREX 3.60 Peers 1.79   TREX 7.97 Peers 11.96

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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