Latest Ratios: P/E Ratio 24.5x · EV/EBITDA 14.8x · ROE 20.2%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.5B | $3.8B | $7.5B | $9.0B | $4.7B | $15.6B | $9.7B | $5.3B | $3.5B | $3.2B | $1.9B |
| Enterprise Value | $4.8B | $4.0B | $7.7B | $9.0B | $5.0B | $15.5B | $9.6B | $5.2B | $3.4B | $3.2B | $1.9B |
| P/E Ratio → | 24.51 | 19.71 | 33.03 | 43.80 | 25.65 | 75.02 | 55.44 | 36.54 | 26.04 | 33.45 | 28.25 |
| P/S Ratio | 3.86 | 3.20 | 6.49 | 8.23 | 4.28 | 13.06 | 11.05 | 7.07 | 5.12 | 5.67 | 3.98 |
| P/B Ratio | 4.52 | 3.63 | 8.80 | 12.57 | 9.14 | 21.56 | 16.54 | 11.74 | 10.22 | 13.86 | 14.21 |
| P/FCF | 36.39 | 30.17 | — | 40.34 | 118.42 | 158.42 | 672.57 | 59.18 | 33.62 | 36.92 | 26.96 |
| P/OCF | 12.66 | 10.49 | 51.95 | 23.13 | 21.90 | 60.57 | 51.96 | 33.72 | 25.39 | 31.47 | 22.36 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.39 | 6.71 | 8.26 | 4.50 | 12.97 | 10.95 | 6.93 | 4.97 | 5.62 | 3.94 |
| EV / EBITDA | 14.82 | 12.41 | 21.46 | 27.69 | 17.10 | 49.87 | 38.34 | 25.54 | 17.60 | 19.94 | 15.94 |
| EV / EBIT | 18.44 | 15.44 | 25.29 | 32.72 | 18.98 | 48.38 | 41.11 | 27.44 | 19.23 | 22.30 | 18.17 |
| EV / FCF | — | 31.98 | — | 40.47 | 124.45 | 157.35 | 666.59 | 57.97 | 32.60 | 36.57 | 26.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.2% | 39.2% | 42.2% | 41.3% | 36.5% | 38.5% | 40.8% | 41.1% | 43.1% | 43.1% | 39.0% |
| Operating Margin | 22.0% | 22.0% | 26.5% | 25.2% | 22.3% | 23.0% | 26.5% | 25.2% | 25.8% | 25.2% | 21.7% |
| Net Profit Margin | 16.2% | 16.2% | 19.7% | 18.8% | 16.7% | 17.4% | 19.9% | 19.4% | 19.7% | 16.8% | 14.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.2% | 20.2% | 28.9% | 33.3% | 29.7% | 31.8% | 33.8% | 36.5% | 46.9% | 52.1% | 54.1% |
| ROA | 13.5% | 13.5% | 20.1% | 22.0% | 19.9% | 24.7% | 25.8% | 27.4% | 34.0% | 34.7% | 31.3% |
| ROIC | 16.4% | 16.4% | 24.8% | 27.5% | 26.8% | 36.8% | 41.5% | 48.8% | 60.5% | 67.5% | 66.9% |
| ROCE | 23.2% | 23.2% | 33.5% | 37.2% | 33.5% | 36.8% | 39.7% | 42.5% | 55.6% | 65.6% | 64.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.22 | 0.22 | 0.30 | 0.04 | 0.49 | 0.05 | 0.06 | 0.09 | — | — | — |
| Debt / EBITDA | 0.71 | 0.71 | 0.71 | 0.10 | 0.87 | 0.11 | 0.14 | 0.20 | — | — | — |
| Net Debt / Equity | — | 0.22 | 0.30 | 0.04 | 0.47 | -0.15 | -0.15 | -0.24 | -0.31 | -0.13 | -0.14 |
| Net Debt / EBITDA | 0.70 | 0.70 | 0.71 | 0.09 | 0.83 | -0.34 | -0.34 | -0.53 | -0.55 | -0.19 | -0.16 |
| Debt / FCF | — | 1.81 | — | 0.13 | 6.03 | -1.07 | -5.97 | -1.21 | -1.01 | -0.35 | -0.26 |
| Interest Coverage | — | — | — | 55240.80 | — | — | — | — | — | 308.85 | 92.40 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.24 | 1.24 | 0.93 | 1.89 | 0.99 | 4.52 | 3.03 | 3.85 | 2.91 | 2.38 | 2.06 |
| Quick Ratio | 0.29 | 0.29 | 0.33 | 0.72 | 0.50 | 3.58 | 2.39 | 3.14 | 2.29 | 1.83 | 1.50 |
| Cash Ratio | 0.02 | 0.02 | 0.00 | 0.02 | 0.04 | 1.59 | 1.14 | 1.89 | 1.14 | 0.49 | 0.36 |
| Asset Turnover | — | 0.79 | 0.87 | 1.17 | 1.18 | 1.30 | 1.14 | 1.26 | 1.47 | 1.73 | 2.17 |
| Inventory Turnover | 2.99 | 2.99 | 3.21 | 6.00 | 4.97 | 8.79 | 7.64 | 7.82 | 6.74 | 9.32 | 10.25 |
| Days Sales Outstanding | — | 15.62 | 28.01 | 16.92 | 32.36 | 48.98 | 51.16 | 43.89 | 54.46 | 48.70 | 36.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 5.1% | 3.0% | 2.3% | 3.9% | 1.3% | 1.8% | 2.7% | 3.8% | 3.0% | 3.5% |
| FCF Yield | 2.7% | 3.3% | — | 2.5% | 0.8% | 0.6% | 0.1% | 1.7% | 3.0% | 2.7% | 3.7% |
| Buyback Yield | 1.2% | 1.4% | 1.4% | 0.2% | 8.4% | 0.5% | 0.5% | 0.9% | 0.9% | 0.1% | 2.9% |
| Total Shareholder Yield | 1.2% | 1.4% | 1.4% | 0.2% | 8.4% | 0.5% | 0.5% | 0.9% | 0.9% | 0.1% | 2.9% |
| Shares Outstanding | — | $107M | $108M | $109M | $112M | $116M | $116M | $117M | $118M | $118M | $118M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TREX stock.
Trex Company, Inc.'s current P/E ratio is 24.5x. The historical average is 45.6x. This places it at the 9th percentile of its historical range.
Trex Company, Inc.'s current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.9x.
Trex Company, Inc.'s return on equity (ROE) is 20.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.2%.
Based on historical data, Trex Company, Inc. is trading at a P/E of 24.5x. This is at the 9th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Trex Company, Inc. has 39.2% gross margin and 22.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Trex Company, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Demand cyclicality and margin compression
Metrics are mathematically derived from official filings.
Margin Compression Signals Pricing Pressure
Gross margin fell from 45.4% in 2024Q1 to 37.9% in 2026Q2, a 750 basis point decline, according to reported financials, suggesting eroding pricing power or rising input costs that may pressure profitability.
Operating margin contracted from 31.9% to 20.6% over the same period, while net margin dropped from 23.8% to 14.8%, indicating that cost inflation and competitive pressures are eroding earnings power. The sharp decline in 2025Q4, where operating margin fell to 2.2%, underscores the cyclicality and seasonality of demand, making trailing margins less indicative of sustainable profitability.
Return on Capital Decays from Peak Levels
ROIC fell from 9.9% in 2024Q1 to 4.8% in 2026Q2, while ROE dropped from 11.7% to 6.2%, based on quarterly data, indicating that capital efficiency is deteriorating as margins compress and asset base expands.
The decline in ROIC is driven primarily by margin compression rather than asset turnover, which has remained relatively stable around 0.2-0.3. The increase in net PPE from $755M to $1.1B suggests that the company is investing heavily in capacity, but returns on that investment are not yet materializing, possibly due to demand normalization. Investors should monitor whether these investments generate adequate returns as volumes recover.
Working Capital Cycle Lengthens with Inventory Build
Cash conversion cycle extended from 87 days in 2024Q1 to 115 days in 2026Q2, driven by rising DIO from 52 to 73 days, as per the ratio data, indicating that inventory is tying up more cash.
DSO has also increased from 52 to 64 days, suggesting slower collections, while DPO has risen from 16 to 22 days, providing some offset. The seasonal inventory build in Q4 (DIO of 159-161 days) reflects the company's preparation for spring demand, but the overall lengthening of the CCC may indicate weaker demand or less efficient inventory management. This trend warrants monitoring as it could pressure liquidity if not reversed.
Seasonal Debt Peaks Mask Moderate Leverage
D/E ratio fluctuates from 0.11 to 0.54, with D/EBITDA spiking to 11.23 in 2025Q4, based on reported figures, indicating that leverage is manageable but sensitive to seasonal earnings troughs.
Interest coverage was 37.04 in 2026Q2, suggesting comfortable debt service, but the absence of data in other quarters limits full assessment. The elevated D/EBITDA in 2025Q4 reflects both higher debt and depressed EBITDA, highlighting the cyclicality of earnings. While average leverage appears moderate, the seasonal peaks and thin cash buffer suggest that the company may be more vulnerable during downturns than the average D/E implies.
Thin Cash Buffer with Seasonal Strain
Current ratio dipped to 0.98 in 2025Q1 and quick ratio to 0.29 in 2025Q4, based on balance sheet data, indicating that liquidity is tight and heavily dependent on inventory conversion.
Cash balances remain minimal, ranging from $1.2M to $12.8M, while the quick ratio consistently below 1.0 suggests that the company relies on inventory to meet short-term obligations. The seasonal inventory build in Q4 exacerbates this, as the quick ratio fell to 0.29 in 2025Q4. Under a severe demand shock, the company may face liquidity stress, though its access to credit lines could provide a buffer, but this is not disclosed in the data.
P/E Misleads Due to Cyclical Earnings
The trailing P/E of 27.06 appears reasonable, but with earnings at cyclical lows, it may overstate value; forward P/E of 27.28 suggests the market expects recovery, yet PEG of 8.09 implies overvaluation.
The most commonly misapplied ratio for TREX is the P/E, because earnings are highly cyclical and seasonal, as evidenced by the swing from $0.82 EPS in 2024Q1 to $0.02 in 2025Q4. Using a single quarter's earnings or even TTM earnings can distort valuation. Instead, investors should use a mid-cycle earnings estimate or EV/EBITDA, which at 16.30 is more stable, but still elevated relative to peers like UFPI at 8.41. The PEG ratio of 8.09 is misleading because it likely uses a near-term growth rate that is depressed, making the stock appear expensive; a normalized growth rate would be more appropriate.