Trex Company, Inc. (TREX) 10-Year Financial Performance & Capital Metrics

TREX • • Industrial / General

IndustrialsConstructionOutdoor & Recreational ProductsOutdoor Living Products

AboutTrex Company, Inc. manufactures and distributes decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. The company operates in two segments, Trex Residential and Trex Commercial. It offers decking products under the names Trex Transcend, Trex Select, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; and Trex Signature aluminum railing for a contemporary look. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. In addition, it designs, engineers, and markets architectural and aluminum railing systems, and staging equipment and accessories for the commercial market, as well as sports stadiums and performing arts venues. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, Cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.Show more

Revenue $1.15B +5.2%
EBITDA $360M +10.4%
Net Income $226M +10.2%
EPS (Diluted) 2.09 +10.6%
Gross Margin 42.18% +2.1%
EBITDA Margin 31.29% +5.0%
Operating Margin 26.55% +5.2%
Net Margin 19.66% +4.8%
ROE 28.9% -13.1%
ROIC 24.77% -9.9%
Debt/Equity 0.30 +572.7%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 30.6%
✓Healthy 5Y average net margin of 18.5%

✗Weaknesses

✗Negative free cash flow
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.39%

5Y9.09%

3Y-1.28%

TTM0.1%

Profit (Net Income) CAGR

10Y18.48%

5Y9.36%

3Y2.74%

TTM-17.05%

EPS CAGR

10Y20.64%

5Y11.19%

3Y5.11%

TTM-15.98%

ROCE

10Y Avg46.1%

5Y Avg36.14%

3Y Avg34.73%

Latest33.52%

Peer Comparison

Outdoor Living Products

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TREXTrex Company, Inc.	4.62B	43.08	20.61	5.17%	16.76%	18.98%		0.30

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	440.8M	479.62M	565.15M	684.25M	745.35M	880.83M	1.2B	1.11B	1.09B	1.15B
Revenue Growth %	0.13%	0.09%	0.18%	0.21%	0.09%	0.18%	0.36%	-0.08%	-0.01%	0.05%
Cost of Goods Sold+	285.94M	292.52M	321.78M	389.36M	438.84M	521.37M	736.45M	702.05M	642.43M	665.78M
COGS % of Revenue	0.65%	0.61%	0.57%	0.57%	0.59%	0.59%	0.62%	0.63%	0.59%	0.58%
Gross Profit+	154.87M	187.09M	243.37M	294.89M	306.5M	359.46M	460.5M	403.99M	452.41M	485.67M
Gross Margin %	0.35%	0.39%	0.43%	0.43%	0.41%	0.41%	0.38%	0.37%	0.41%	0.42%
Gross Profit Growth %	0.1%	0.21%	0.3%	0.21%	0.04%	0.17%	0.28%	-0.12%	0.12%	0.07%
Operating Expenses+	77.46M	83.14M	100.99M	118.22M	118.3M	125.82M	185.13M	157.25M	176.2M	180M
OpEx % of Revenue	0.18%	0.17%	0.18%	0.17%	0.16%	0.14%	0.15%	0.14%	0.16%	0.16%
Selling, General & Admin	77.46M	83.14M	100.99M	118.22M	118.3M	125.82M	139.62M	141.83M	176.2M	180M
SG&A % of Revenue	0.18%	0.17%	0.18%	0.17%	0.16%	0.14%	0.12%	0.13%	0.16%	0.16%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	45.5M	15.42M	0	0
Operating Income+	77.41M	103.95M	142.38M	176.67M	188.2M	233.63M	275.38M	246.74M	276.2M	305.67M
Operating Margin %	0.18%	0.22%	0.25%	0.26%	0.25%	0.27%	0.23%	0.22%	0.25%	0.27%
Operating Income Growth %	0.14%	0.34%	0.37%	0.24%	0.07%	0.24%	0.18%	-0.1%	0.12%	0.11%
EBITDA+	91.79M	118.45M	159.24M	193.27M	202.23M	251.57M	311.32M	291.03M	326.39M	360.34M
EBITDA Margin %	0.21%	0.25%	0.28%	0.28%	0.27%	0.29%	0.26%	0.26%	0.3%	0.31%
EBITDA Growth %	0.11%	0.29%	0.34%	0.21%	0.05%	0.24%	0.24%	-0.07%	0.12%	0.1%
D&A (Non-Cash Add-back)	14.38M	14.5M	16.86M	16.6M	14.03M	17.94M	35.95M	44.3M	50.19M	54.67M
EBIT	77.41M	103.95M	142.38M	176.86M	188.2M	234.63M	320.88M	262.16M	276.2M	305.67M
Net Interest Income+	-619K	-1.13M	-461K	192K	1.5M	999K	15K	103K	-5K	0
Interest Income	0	0	0	192K	1.5M	999K	15K	103K	0	0
Interest Expense	619K	1.13M	461K	0	0	0	0	0	5K	0
Other Income/Expense	-619K	-1.13M	-461K	192K	1.5M	999K	15K	103K	-5K	11K
Pretax Income+	76.79M	102.83M	141.92M	176.86M	189.7M	234.63M	275.39M	246.84M	276.2M	305.68M
Pretax Margin %	0.17%	0.21%	0.25%	0.26%	0.25%	0.27%	0.23%	0.22%	0.25%	0.27%
Income Tax+	28.69M	34.98M	46.79M	42.29M	44.96M	59M	66.65M	62.21M	70.81M	79.29M
Effective Tax Rate %	0.63%	0.66%	0.67%	0.76%	0.76%	0.75%	0.76%	0.75%	0.74%	0.74%
Net Income+	48.1M	67.85M	95.13M	134.57M	144.74M	175.63M	208.74M	184.63M	205.38M	226.39M
Net Margin %	0.11%	0.14%	0.17%	0.2%	0.19%	0.2%	0.17%	0.17%	0.19%	0.2%
Net Income Growth %	0.16%	0.41%	0.4%	0.41%	0.08%	0.21%	0.19%	-0.12%	0.11%	0.1%
Net Income (Continuing)	48.1M	67.85M	95.13M	134.57M	144.74M	175.63M	208.74M	184.63M	205.38M	226.39M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.38	0.57	0.81	1.14	1.23	1.51	1.80	1.65	1.89	2.09
EPS Growth %	0.19%	0.5%	0.42%	0.41%	0.08%	0.23%	0.19%	-0.08%	0.15%	0.11%
EPS (Basic)	0.38	0.58	0.81	1.15	1.24	1.52	1.81	1.65	1.89	2.09
Diluted Shares Outstanding	126.73M	118.45M	118.3M	118.13M	117.32M	116.25M	115.76M	111.88M	108.81M	108.32M
Basic Shares Outstanding	125.4M	117.58M	117.57M	117.48M	116.86M	115.89M	115.46M	111.71M	108.68M	108.19M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	99.03M	105.65M	148.8M	270.23M	303.2M	322M	401.05M	286.84M	172.25M	318.91M
Cash & Short-Term Investments	6M	18.66M	30.51M	105.7M	148.83M	121.7M	141.05M	12.32M	1.96M	1.29M
Cash Only	6M	18.66M	30.51M	105.7M	148.83M	121.7M	141.05M	12.32M	1.96M	1.29M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	47.39M	48.04M	75.4M	102.09M	89.63M	123.45M	160.61M	98.06M	50.75M	88.36M
Days Sales Outstanding	39.24	36.56	48.7	54.46	43.89	51.16	48.98	32.36	16.92	28.01
Inventory	23.1M	28.55M	34.52M	57.8M	56.11M	68.24M	83.75M	141.35M	107.09M	207.28M
Days Inventory Outstanding	29.49	35.62	39.16	54.19	46.67	47.77	41.51	73.49	60.84	113.64
Other Current Assets	20.65M	4.19M	864K	1.25M	350K	1.32M	576K	24.32M	629K	625K
Total Non-Current Assets+	112.97M	115.78M	177.43M	194.9M	289.04M	448.5M	519.27M	646.86M	760.63M	1.01B
Property, Plant & Equipment	100.92M	103.29M	103.11M	117.14M	211.35M	370.92M	494.94M	620.88M	735.63M	975.06M
Fixed Asset Turnover	4.37x	4.64x	5.48x	5.84x	3.53x	2.37x	2.42x	1.78x	1.49x	1.18x
Goodwill	10.53M	10.52M	68.46M	68.46M	67.78M	67.36M	14.22M	14.2M	14.2M	14.2M
Intangible Assets	0	0	2.86M	6.04M	6.3M	6.3M	4.8M	4.4M	3.96M	7.85M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	1.52M	1.97M	3M	3.25M	3.6M	3.91M	5.33M	7.4M	6.83M	8.28M
Total Assets+	212M	221.43M	326.23M	465.12M	592.24M	770.49M	920.32M	933.71M	932.88M	1.32B
Asset Turnover	2.08x	2.17x	1.73x	1.47x	1.26x	1.14x	1.30x	1.18x	1.17x	0.87x
Asset Growth %	0.08%	0.04%	0.47%	0.43%	0.27%	0.3%	0.19%	0.01%	-0%	0.42%
Total Current Liabilities+	60.45M	51.38M	62.51M	92.78M	78.67M	106.35M	88.7M	290.6M	91.06M	342.48M
Accounts Payable	17.73M	10.77M	9.95M	31.08M	15.23M	38.62M	24.86M	19.93M	23.96M	61.27M
Days Payables Outstanding	22.64	13.43	11.29	29.14	12.66	27.04	12.32	10.36	13.61	33.59
Short-Term Debt	7M	0	0	0	0	0	0	222M	5.5M	202.6M
Deferred Revenue (Current)	0	0	1000K	1000K	1000K	1000K	1000K	0	0	0
Other Current Liabilities	14.57M	15.55M	18.47M	24.6M	16.5M	26.63M	28.99M	13.96M	30.19M	22.11M
Current Ratio	1.64x	2.06x	2.38x	2.91x	3.85x	3.03x	4.52x	0.99x	1.89x	0.93x
Quick Ratio	1.26x	1.50x	1.83x	2.29x	3.14x	2.39x	3.58x	0.50x	0.72x	0.33x
Cash Conversion Cycle	46.09	58.74	76.57	79.5	77.89	71.89	78.17	95.49	64.15	108.06
Total Non-Current Liabilities+	35.09M	35.88M	32.47M	29.38M	64.39M	75.61M	106.58M	124.76M	125.15M	131.68M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	34.24M	28.58M	28.26M	23.97M	18.84M	41.98M
Deferred Tax Liabilities	4.6M	894K	1.29M	2.13M	9.83M	22.96M	43.97M	68.22M	72.44M	56.03M
Other Non-Current Liabilities	30.49M	34.99M	31.18M	27.26M	20.32M	24.07M	34.35M	32.56M	33.87M	33.67M
Total Liabilities	95.53M	87.27M	94.98M	122.16M	143.06M	181.96M	195.29M	415.36M	216.21M	474.16M
Total Debt+	7M	0	0	0	41.32M	35.29M	35.33M	253.46M	32M	255.38M
Net Debt	1M	-18.66M	-30.51M	-105.7M	-107.51M	-86.41M	-105.72M	241.14M	30.04M	254.09M
Debt / Equity	0.06x	-	-	-	0.09x	0.06x	0.05x	0.49x	0.04x	0.30x
Debt / EBITDA	0.08x	-	-	-	0.20x	0.14x	0.11x	0.87x	0.10x	0.71x
Net Debt / EBITDA	0.01x	-0.16x	-0.19x	-0.55x	-0.53x	-0.34x	-0.34x	0.83x	0.09x	0.71x
Interest Coverage	125.05x	92.40x	308.85x	-	-	-	-	-	55240.80x	-
Total Equity+	116.46M	134.16M	231.25M	342.96M	449.18M	588.53M	725.03M	518.35M	716.67M	850.14M
Equity Growth %	0.03%	0.15%	0.72%	0.48%	0.31%	0.31%	0.23%	-0.29%	0.38%	0.19%
Book Value per Share	0.92	1.13	1.95	2.90	3.83	5.06	6.26	4.63	6.59	7.85
Total Shareholders' Equity	116.46M	134.16M	231.25M	342.96M	449.18M	588.53M	725.03M	518.35M	716.67M	850.14M
Common Stock	348K	349K	349K	700K	702K	1.41M	1.41M	1.41M	1.41M	1.41M
Retained Earnings	119.39M	187.24M	282.37M	416.94M	561.68M	737.31M	946.05M	1.13B	1.34B	1.56B
Treasury Stock	-120.23M	-173.51M	-173.51M	-198.9M	-237.2M	-276.27M	-350.21M	-745.27M	-760.95M	-861.87M
Accumulated OCI	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	62.63M	85.29M	101.86M	138.12M	156.35M	187.29M	258.06M	216.22M	389.42M	143.93M
Operating CF Margin %	0.14%	0.18%	0.18%	0.2%	0.21%	0.21%	0.22%	0.2%	0.36%	0.12%
Operating CF Growth %	0.07%	0.36%	0.19%	0.36%	0.13%	0.2%	0.38%	-0.16%	0.8%	-0.63%
Net Income	48.1M	67.85M	95.13M	134.57M	144.74M	175.63M	208.74M	184.63M	205.38M	226.39M
Depreciation & Amortization	14.38M	14.5M	16.86M	16.6M	14.03M	17.94M	35.95M	44.3M	50.19M	54.67M
Stock-Based Compensation	4.86M	4.79M	5.19M	6.34M	6.93M	7.13M	8.44M	5.33M	10.16M	12.63M
Deferred Taxes	1.02M	5.43M	194K	1.04M	7.71M	13.13M	21.01M	24.26M	4.21M	-16.41M
Other Non-Cash Items	-2.77M	-469K	1.33M	-359K	67K	-5K	54.24M	15.28M	3.09M	2.83M
Working Capital Changes	-2.96M	-6.8M	-16.84M	-20.07M	-17.12M	-26.53M	-70.31M	-57.57M	116.38M	-136.19M
Change in Receivables	-10.99M	-653K	-10.49M	-24.28M	12.7M	-28.29M	-44.35M	42.51M	56.92M	-47.22M
Change in Inventory	643K	-5.44M	-3.63M	-23.28M	1.7M	-12.13M	-15.52M	-64.45M	34.27M	-100.19M
Change in Payables	-2.32M	-6.97M	-4.8M	21.13M	-16.67M	11.35M	-3.47M	-5.59M	2.7M	-819K
Cash from Investing+	-23.33M	-10.2M	-86.79M	-33.73M	-67.24M	-170.66M	-158.04M	-168.88M	-166.09M	-236.53M
Capital Expenditures	-23.33M	-14.55M	-15.04M	-33.82M	-67.27M	-172.82M	-159.39M	-176.23M	-166.09M	-236.64M
CapEx % of Revenue	0.05%	0.03%	0.03%	0.05%	0.09%	0.2%	0.13%	0.16%	0.15%	0.21%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	35K	4.35M	55K	83K	21K	2.17M	1.35M	7.34M	0	0
Cash from Financing+	-42.85M	-62.42M	-3.23M	-29.2M	-45.97M	-43.77M	-80.67M	-176.06M	-233.7M	91.94M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	3.46M	-206K	391K	882K	571K	1.09M	1.8M	318K	1.25M	779K
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	39.3M	70.74M	86.83M	104.31M	89.09M	14.47M	98.67M	39.99M	223.33M	-92.71M
FCF Margin %	0.09%	0.15%	0.15%	0.15%	0.12%	0.02%	0.08%	0.04%	0.2%	-0.08%
FCF Growth %	-0.14%	0.8%	0.23%	0.2%	-0.15%	-0.84%	5.82%	-0.59%	4.58%	-1.42%
FCF per Share	0.31	0.60	0.73	0.88	0.76	0.12	0.85	0.36	2.05	-0.86
FCF Conversion (FCF/Net Income)	1.30x	1.26x	1.07x	1.03x	1.08x	1.07x	1.24x	1.17x	1.90x	0.64x
Interest Paid	625K	852K	418K	662K	0	0	0	0	51K	0
Taxes Paid	26.33M	28.63M	44.8M	48.24M	39.61M	50.74M	38.61M	59.93M	52.34M	85.17M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	41.85%	54.14%	52.07%	46.87%	36.54%	33.85%	31.78%	29.7%	33.26%	28.9%
Return on Invested Capital (ROIC)	52.46%	66.93%	67.54%	60.5%	48.76%	41.53%	36.83%	26.84%	27.51%	24.77%
Gross Margin	35.13%	39.01%	43.06%	43.1%	41.12%	40.81%	38.47%	36.53%	41.32%	42.18%
Net Margin	10.91%	14.15%	16.83%	19.67%	19.42%	19.94%	17.44%	16.69%	18.76%	19.66%
Debt / Equity	0.06x	-	-	-	0.09x	0.06x	0.05x	0.49x	0.04x	0.30x
Interest Coverage	125.05x	92.40x	308.85x	-	-	-	-	-	55240.80x	-
FCF Conversion	1.30x	1.26x	1.07x	1.03x	1.08x	1.07x	1.24x	1.17x	1.90x	0.64x
Revenue Growth	12.55%	8.8%	17.83%	21.07%	8.93%	18.18%	35.89%	-7.6%	-1.01%	5.17%

Frequently Asked Questions

Valuation & Price

Trex Company, Inc. (TREX) has a price-to-earnings (P/E) ratio of 20.6x. This is roughly in line with market averages.

Growth & Financials

Trex Company, Inc. (TREX) reported $1.18B in revenue for fiscal year 2024. This represents a 343% increase from $266.8M in 2011.

Trex Company, Inc. (TREX) grew revenue by 5.2% over the past year. This is steady growth.

Yes, Trex Company, Inc. (TREX) is profitable, generating $197.9M in net income for fiscal year 2024 (19.7% net margin).

Dividend & Returns

Trex Company, Inc. (TREX) has a return on equity (ROE) of 28.9%. This is excellent, indicating efficient use of shareholder capital.

Trex Company, Inc. (TREX) generated $199.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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