/
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.
Margins and capital returns are both well above average: 21.97% operating margin, ROIC at 19.13%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 2.0%, essentially flat. Margins also contracted 6.0pp. This is a business that needs a catalyst.
ROIC dropped from 28.97% to 19.13%, capital efficiency is deteriorating. Operating margin contracted 6.0pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$1.18B
▲ +2.0% YoY
Net Income (TTM)
$191M
▼ -20.1% YoY
Op. Margin
22.06%
▼ -6.0pp YoY
ROIC
17.94%
▼ -9.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$226M
▲ +252.2% YoY
Op. Cash Flow (TTM)
$394M
▲ +148.8% YoY
Net Debt
$48M
Cash & Equiv.
$4M
5Y CAGR: +5.9%
5Y CAGR: +56.2%
Continue Research