Trex Company, Inc.
Trex Company, Inc. (Trex, Company, we, us or our), was incorporated as a Delaware corporation in 1998. The Company is the world s largest manufacturer of composite decking and railing products, which are marketed under the brand name Trex and manufactured in the United States.
$51.07
+$2.24 (+4.59%)
EOD Oct 22, 2026
Margins and capital returns are both well above average: 20.17% operating margin, ROIC at 16.77%.
Revenue growth slowed to 2.0% in the fiscal year ended Dec 2025, essentially flat. Margins also contracted 6.0pp.
At 30.22x earnings, the multiple leaves limited room for execution misses or growth deceleration. ROIC fell 9.8 points in the fiscal year ended Dec 2025, capital efficiency is deteriorating.
30.22x earnings, 25.00x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.21B
▲ +2.0% YoY
Net Income (TTM)
$177M
▼ -20.1% YoY
Op. Margin
20.17%
▼ -6.0pp YoY
ROIC
16.77%
▼ -9.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$208M
▲ +252.2% YoY
Op. Cash Flow (TTM)
$358M
▲ +148.8% YoY
Net Debt
$44M
Cash & Equiv.
$6M
5Y CAGR: +5.9%
5Y CAGR: +56.2%
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SourceComputed from the 10-Q filed 16 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 22 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Trex Company (TREX) overvalued?
At a P/E of 30.2 and a price-to-free-cash-flow of 25.0, Trex Company (TREX) trades below a two-stage DCF intrinsic value of about $81.36 per share, so at $51.07 the stock looks undervalued (59.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Trex Company scores 63/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Trex Company's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $81.36 per share for TREX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $61.02. At today's $51.07, that puts the stock about 59.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Trex Company a high-quality business?+
Trex Company scores 63 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 20.2% operating margin and a 16.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Trex Company a good stock to buy right now?+
That depends on valuation and quality together, not either alone. TREX currently trades below its estimated intrinsic value and scores 63/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Lumber & Wood Products (No Furniture)
Spot a number that looks wrong? Check it in TREX's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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