Trex Company (TREX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Trex Company

NYSE•Industrials•Building Products & Equipment

$42.69-0.72(-0.02%)Market closed

Market Cap

$4.37B

P/E

24.6x

P/S

3.6x

P/B

4.3x

Trex Company, Inc. manufactures and sells composite decking and railing products in the United States. It offers decking products and accessories that can be used for protection against fading, staining, mold, and scratching, including Trex Transcend, which are decking products that can also be used as cladding; Trex Signature; Trex Transcend Lineage; Trex Select; Trex Enhance; Trex Hideaway fastener collection; and Trex DeckLighting, an outdoor lighting system that includes a post cap, deck rail, riser, a soffit, and a recessed deck lights. The company also offers railing products, such as Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, Trex Enhance Railing; and fencing products, which includes Trex Seclusions that consists of structural posts, bottom rails, pickets, top rails, and decorative post caps. In addition, it 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 Protect joist, beam and rim tape, a self-adhesive butyl tape that protects wooden deck framing/substructure elements; Trex RainEscape Soffit Light, a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck; Trex Seal Ledger Flashing Tape, butyl flashing tape with an aluminum liner; Trex Pergola, Pergolas made from low maintenance aluminum reinforced cellular PVC; Trex Lattice outdoor boards; Trex Cornhole boards; Trex Blade, a specialty saw blade for wood-alternative composite decking; Trex SpiralStairs; and Trex Outdoor Kitchen cabinetry. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.

How this company scores

GoodMetricSide Score: 66/100

Strongest: Cash & Earnings Quality (20/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability16/25

Growth15/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality20/25

Strengths

Strong marginsHigh ROEInterest easily coveredCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 24.6x5y range 19.4x – 73.5x

Currently near its 20-quarter median.

P/S · 3.6x5y range 3.2x – 12.8x

Currently below its 20-quarter median.

P/B · 4.3x5y range 3.7x – 21.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 13.4% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $4.37B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.21B
Q. Revenue: $418.02M
TTM EBITDA: $314.24M
TTM Op. Income: $243.60M
Q. Op. Income: $86.19M
TTM Net Income: $177.35M
Q. Net Income: $61.88M
EPS: $0.6
Shares Out.: $102.31M

$1.21B in TTM revenue grew 7.0% YoY, reaching $418.02M last quarter. TTM EBITDA of $314.24M and TTM operating income of $243.60M show growth is flowing through to the bottom line. TTM net income of $177.35M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 37.9%
EBITDA Margin: 25.3%
Op. Margin: 20.6%
Net Margin: 14.8%

Op. margin of 20.6% is down 5.8% YoY — costs are rising relative to revenue. Net margin at 14.8% and gross margin of 37.9% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 22% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 24.6x
P/S Ratio: 3.6x
P/B Ratio: 4.3x

At 24.6x P/E, the stock trades within typical market levels. P/S of 3.6x and P/B of 4.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 21% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.63B
Cash: $6.47M
Long-Term Debt: N/A
Book Value: $1.01B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $214.16M
TTM Free Cash Flow: $208.06M
FCF Margin: 17.2%
FCF / Net Income: 1.2

TTM FCF of $208.06M on $214.16M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 418% — a weakening trend.