Trex Company Inc. Common Stock (TREX)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Trex is a maker of composite decking and railing, but I must judge it by the numbers. In the quarter ended 2026-06-30, revenue was $418.0M, up from $387.8M in the quarter ended 2025-06-30. Yet net income fell to $61.9M from $75.9M, and diluted EPS declined to $0.60 from $0.71. That tells me costs or pricing are under pressure, and the business is not compounding profit. FairStock classifies it as a SLOW GROWER, with profit up only 1.6% a year over five years and revenue up 5.9%. The financial position is sound: Piotroski F-Score 8/9, Altman Z-Score 6.57, debt-to-equity 0.30, ROE 17.74%, and trailing free cash flow $198.4M. But ROCE of 9.62% is only moderate, and profit growth of -18.49% is a concern. At the close on 2026-10-13, the price was $45.05, giving a P/E of 26.50, P/B of 4.70, EV/EBITDA of 15.55, and FCF yield of 4.3%. The Graham Number is $19.48, implying a margin of safety of -131.26%, so the price is far above a conservative asset-and-earnings value. I see branded product lines, but not a wide moat in these figures. A slow grower at a premium multiple needs a clear profit turn.

In plain English: Trex makes composite decking and railing products. The business is profitable and financially solid, but sales grew only a little in the latest quarter while profit fell, and over the past five years the company has grown slowly. At $45.05, the stock looks expensive compared with its profits, cash flow, and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer