Financial Analysis: Trex (TREX) & Its Rivals
Trex (NYSE: TREX) is one of 25 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its peers? We will compare Trex to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.
This is a summary of current recommendations for Trex and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trex currently has a consensus target price of $71.75, suggesting a potential downside of 20.34%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.95%. Given Trex’s peers stronger consensus rating and higher possible upside, analysts plainly believe Trex has less favorable growth aspects than its peers.
Risk & Volatility
Trex has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, Trex’s peers have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.
This table compares Trex and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
91.8% of Trex shares are owned by institutional investors. Comparatively, 83.8% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 1.0% of Trex shares are owned by company insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Trex and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Trex||$504.24 million||$131.61 million||34.91|
|Trex Competitors||$2.53 billion||$321.97 million||29.18|
Trex’s peers have higher revenue and earnings than Trex. Trex is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Trex peers beat Trex on 8 of the 13 factors compared.
Trex Company Profile
Trex Company, Inc. is a manufacturer of wood-alternative decking and railing products. The Company’s products are marketed under the brand name Trex and are manufactured in the United States. It offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select. The Company’s railing products include Trex Transcend Railing, Trex Select Railing and Trex Signature aluminum railing. It offers Trex Transcend Porch Flooring and Railing System, which is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product, which consists of structural posts, bottom rail, pickets, top rail and decorative post caps. It offers a triple-coated steel deck framing system called Trex Elevations. The Company also offers outdoor lighting systems, such as Trex DeckLighting and Trex Landscape Lighting.
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