Trex Operating Margin vs. Net Income
| TREX Stock | USD 40.21 0.05 0.12% |
Trex Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.3917 |
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For Trex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Trex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Trex Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Trex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Trex Company over time as well as its relative position and ranking within its peers.
Check out World Market Map. Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Trex. If investors know Trex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Trex assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth (0.89) | Earnings Share 1.78 | Revenue Per Share | Quarterly Revenue Growth (0.04) | Return On Assets |
Investors evaluate Trex Company using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Trex's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause Trex's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Trex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Trex's market price signifies the transaction level at which participants voluntarily complete trades.
Trex Company Net Income vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Trex's current stock value. Our valuation model uses many indicators to compare Trex value to that of its competitors to determine the firm's financial worth. Trex Company is rated below average in operating margin category among its peers. It is rated below average in net income category among its peers making up about 8,774,884,793 of Net Income per Operating Margin. At this time, Trex's Operating Profit Margin is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Trex's earnings, one of the primary drivers of an investment's value.Trex Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Trex |
| = | 0.02 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Trex |
| = | 190.41 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Trex Net Income Comparison
Trex is currently under evaluation in net income category among its peers.
Trex Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Trex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Trex will eventually generate negative long term returns. The profitability progress is the general direction of Trex's change in net profit over the period of time. It can combine multiple indicators of Trex, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 258 M | 270.9 M | |
| Income Before Tax | 258 M | 270.9 M | |
| Total Other Income Expense Net | 12.7 K | 13.3 K | |
| Net Income | 190.4 M | 199.9 M | |
| Income Tax Expense | 67.5 M | 70.9 M | |
| Net Income Applicable To Common Shares | 212.3 M | 222.9 M | |
| Net Income From Continuing Ops | 190.4 M | 127.4 M | |
| Interest Income | 92.7 K | 88.1 K | |
| Change To Netincome | 51.6 M | 54.2 M | |
| Net Income Per Share | 1.78 | 1.87 | |
| Income Quality | 1.88 | 1.29 | |
| Net Income Per E B T | 0.74 | 0.96 |
Trex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Trex. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Trex position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Trex's important profitability drivers and their relationship over time.
Trex Earnings per Share Projection vs Actual
Use Trex in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Trex position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Trex will appreciate offsetting losses from the drop in the long position's value.Trex Pair Trading
Trex Company Pair Trading Analysis
The ability to find closely correlated positions to Trex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Trex when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Trex - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Trex Company to buy it.
The correlation of Trex is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Trex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Trex Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Trex can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Trex position
In addition to having Trex in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Dynamically computed list of top equities currently sorted across major exchanges. The Latest Gainers theme has 135 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Latest Gainers Theme or any other thematic opportunities.
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Additional Tools for Trex Stock Analysis
When running Trex's price analysis, check to measure Trex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Trex is operating at the current time. Most of Trex's value examination focuses on studying past and present price action to predict the probability of Trex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Trex's price. Additionally, you may evaluate how the addition of Trex to your portfolios can decrease your overall portfolio volatility.