Trex Valuation

TREX Stock  USD 41.42  0.44  1.05%   
At this time, the company appears to be undervalued. Trex Company has a current Real Value of $48.32 per share. The regular price of the company is $41.42. Our model measures the value of Trex Company from inspecting the company fundamentals such as Shares Outstanding of 107.25 M, return on equity of 0.2, and Operating Margin of 0.02 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Trex's valuation include:
Price Book
4.2615
Enterprise Value
4.6 B
Enterprise Value Ebitda
13.9313
Price Sales
3.7832
Forward PE
25.3165
Undervalued
Today
41.42
Please note that Trex's price fluctuation is very steady at this time. Calculation of the real value of Trex Company is based on 3 months time horizon. Increasing Trex's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Trex is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Trex Stock. However, Trex's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  41.42 Real  48.32 Target  48.9 Hype  41.84 Naive  42.38
The intrinsic value of Trex's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Trex's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
48.32
Real Value
50.31
Upside
Estimating the potential upside or downside of Trex Company helps investors to forecast how Trex stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Trex more accurately as focusing exclusively on Trex's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.550.640.70
Details
Hype
Prediction
LowEstimatedHigh
39.8541.8443.83
Details
Naive
Forecast
LowNext ValueHigh
40.3942.3844.37
Details
18 Analysts
Consensus
LowTarget PriceHigh
44.5048.9054.28
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Trex's intrinsic value based on its ongoing forecasts of Trex's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Trex's closest peers.

Trex Cash

3.62 Million

Trex Total Value Analysis

Trex Company is at this time forecasted to have valuation of 4.59 B with market capitalization of 4.44 B, debt of 229.09 M, and cash on hands of 5.88 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Trex fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
4.59 B
4.44 B
229.09 M
5.88 M

Trex Investor Information

About 99.0% of the company shares are owned by institutional investors. The book value of Trex was at this time reported as 9.78. The company has Price/Earnings To Growth (PEG) ratio of 1.17. Trex Company had not issued any dividends in recent years. The entity had 2:1 split on the 15th of September 2020. Based on the key measurements obtained from Trex's financial statements, Trex Company is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.

Trex Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Trex has an asset utilization ratio of 78.77 percent. This suggests that the Company is making $0.79 for each dollar of assets. An increasing asset utilization means that Trex Company is more efficient with each dollar of assets it utilizes for everyday operations.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Trex Profitability Analysis

Based on the key profitability measurements obtained from Trex's financial statements, Trex's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Trex's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1998-03-31
Previous Quarter
51.8 M
Current Value
2.3 M
Quarterly Volatility
24.9 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Trex's Gross Profit is fairly stable compared to the past year. Pretax Profit Margin is likely to rise to 0.23 in 2026, whereas Operating Profit Margin is likely to drop 0.12 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.3917
Notably Up
Slightly volatile
For Trex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Trex Company to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Trex 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 over time as well as its relative position and ranking within its peers.

Trex Earnings per Share Projection vs Actual

The next projected EPS of Trex is estimated to be 0.639 with future projections ranging from a low of 0.5511 to a high of 0.7. Trex's most recent 12-month trailing earnings per share (EPS TTM) is at 1.84. Please be aware that the consensus of earnings estimates for Trex Company is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Trex is projected to generate 0.639 in earnings per share on the 30th of June 2026. Trex earnings estimates show analyst consensus about projected Trex EPS (Earning Per Share). It derives the highest and the lowest estimates based on Trex's historical volatility. Many public companies, such as Trex, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Trex Earnings Estimation Breakdown

The calculation of Trex's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Trex is estimated to be 0.639 with the future projection ranging from a low of 0.5511 to a high of 0.7. Please be aware that this consensus of annual earnings estimates for Trex Company is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.55
Lowest
Expected EPS
0.639
0.70
Highest

Trex Earnings Projection Consensus

Suppose the current estimates of Trex's value are higher than the current market price of the Trex stock. In this case, investors may conclude that Trex is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Trex's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
2067.83%
0.0
0.639
1.84

Trex Ownership Allocation

Trex Company shows a total of 107.25 Million outstanding shares. The majority of Trex Company outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Trex to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Trex Company. Please pay attention to any change in the institutional holdings of Trex Company as this could imply that something significant has changed or is about to change at the company. Also note that roughly seventy-five thousand seventy-eight invesors are currently shorting Trex expressing very little confidence in its future performance.

Trex Profitability Analysis

The company reported the previous year's revenue of 1.17 B. Net Income was 190.41 M with profit before overhead, payroll, taxes, and interest of 459.96 M.

About Trex Valuation

Our relative valuation model uses a comparative analysis of Trex. We calculate exposure to Trex's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Trex's related companies.
Last ReportedProjected for Next Year
Gross Profit460 M483 M
Pretax Profit Margin 0.22  0.23 
Operating Profit Margin 0.22  0.12 
Net Profit Margin 0.16  0.17 
Gross Profit Margin 0.39  0.42 

Trex Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding107.1 M
Quarterly Earnings Growth Y O Y-0.894
Forward Price Earnings25.3165

Trex Current Valuation Indicators

Valuation refers to the process of determining the present value of Trex Company and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Trex we look at many different elements of the entity such as Trex's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Trex, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Trex's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Trex's worth.

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.