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Upturn AI SWOT - About
TREX 
Trex Company Inc (TREX)
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Upturn Advisory Summary
04/01/2025: TREX (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 30.01% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.27B USD | Price to earnings Ratio 27.97 | 1Y Target Price 75.36 |
Price to earnings Ratio 27.97 | 1Y Target Price 75.36 | ||
Volume (30-day avg) 2126677 | Beta 1.6 | 52 Weeks Range 52.75 - 97.69 | Updated Date 04/1/2025 |
52 Weeks Range 52.75 - 97.69 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.09 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.66% | Operating Margin (TTM) 9.22% |
Management Effectiveness
Return on Assets (TTM) 16.93% | Return on Equity (TTM) 28.9% |
Valuation
Trailing PE 27.97 | Forward PE 26.04 | Enterprise Value 6518652928 | Price to Sales(TTM) 5.41 |
Enterprise Value 6518652928 | Price to Sales(TTM) 5.41 | ||
Enterprise Value to Revenue 5.56 | Enterprise Value to EBITDA 17.76 | Shares Outstanding 107220000 | Shares Floating 106492260 |
Shares Outstanding 107220000 | Shares Floating 106492260 | ||
Percent Insiders 0.69 | Percent Institutions 104.83 |
Analyst Ratings
Rating 3.67 | Target Price 80.62 | Buy 1 | Strong Buy 6 |
Buy 1 | Strong Buy 6 | ||
Hold 10 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Trex Company Inc
Company Overview
History and Background
Trex Company, Inc. was founded in 1996 as a subsidiary of Mobil Corporation. It pioneered the wood-alternative decking industry, launching its composite decking products commercially in 1996. The company focused on using recycled materials and has grown to become a leading manufacturer of wood-alternative decking and railing products.
Core Business Areas
- Trex Residential: Manufacturing and distribution of composite decking, railing, and outdoor living products for residential applications.
- Trex Commercial: Manufacturing and distribution of composite decking and railing products for commercial applications.
Leadership and Structure
Bryan Fairbanks serves as the President and CEO. The organizational structure is typical of a publicly traded company, with a board of directors and various executive leadership positions overseeing different functional areas.
Top Products and Market Share
Key Offerings
- Trex Decking: Composite decking made from recycled plastic and wood fibers. Trex holds a significant market share in the composite decking market, estimated to be around 50%. Competitors include AZEK Building Products (now part of Westlake Chemical), Fiberon (owned by Fortune Brands Innovations), and TimberTech (also owned by Azek). Revenue is not broken down product by product but Trex decking makes up the bulk of sales
- Trex Railing: Composite railing systems designed to complement Trex decking. Competitors align with those in decking. Market share is similar to decking. Revenue is not broken down product by product but Trex railing makes up part of the bulk of sales
- Trex Outdoor Lighting: LED lighting products designed to enhance outdoor living spaces. Competitors include AZEK Building Products (now part of Westlake Chemical), Fiberon (owned by Fortune Brands Innovations), and TimberTech (also owned by Azek). Market share is smaller than decking and railing. Revenue is not broken down product by product but Trex lighting makes up part of the bulk of sales
Market Dynamics
Industry Overview
The wood-alternative decking and railing industry is experiencing growth due to increasing demand for durable, low-maintenance, and environmentally friendly outdoor building products. Factors driving the growth include increasing home improvement spending and a preference for composite materials over traditional wood.
Positioning
Trex Company Inc. is positioned as a premium brand in the composite decking market. It differentiates itself through its high-quality products, extensive distribution network, and strong brand recognition. They are also positioned well to take more of the market share.
Total Addressable Market (TAM)
The TAM for decking and railing in North America is estimated to be billions of dollars annually. Trex is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive distribution network
- High-quality products
- Focus on recycled materials
- Large Market Share
Weaknesses
- Premium pricing may limit market penetration in some segments
- Sensitivity to raw material price fluctuations
- Dependence on the housing market
Opportunities
- Expansion into new geographic markets
- Development of new products and applications
- Increased adoption of sustainable building practices
- Growth in the repair and remodeling market
Threats
- Competition from other composite decking manufacturers
- Fluctuations in the housing market
- Changes in raw material costs
- Economic downturns
Competitors and Market Share
Key Competitors
- AZEK (AZEK)
- Fortune Brands Innovations (FBIN)
- UFP Industries (UFPI)
Competitive Landscape
Trex benefits from a strong brand and large market share. Competitors are trying to catch up. AZEK and FBIN are both formidable competitors with strong distribution networks. UFPI also produces pressure treated lumber, which may appeal to different customers.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Trex has demonstrated strong historical growth, driven by increasing demand for composite decking and its successful market positioning.
Future Projections: Future growth projections need to be based on analyst reports.
Recent Initiatives: Recent initiatives include expanding production capacity, introducing new product lines, and strengthening its distribution network.
Summary
Trex Company Inc. is a dominant player in the composite decking industry. It has a strong brand, extensive distribution network, and a compelling product offering. However, Trex is exposed to raw material price fluctuations and the cyclical nature of the housing market. Investors should keep a close eye on competition and economic conditions.
Similar Companies
AZEK
Azek Company Inc
AZEK
Azek Company Inc
FBIN
Fortune Brands Innovations Inc.
FBIN
Fortune Brands Innovations Inc.
UFPI
Ufp Industries Inc
UFPI
Ufp Industries Inc
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Analyst Reports
- Industry Publications
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market share and TAM values are estimates and may vary. Always do your own research before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Trex Company Inc
Exchange NYSE | Headquaters Winchester, VA, United States | ||
IPO Launch date 1999-04-08 | President, CEO & Director Mr. Bryan Horix Fairbanks | ||
Sector Industrials | Industry Building Products & Equipment | Full time employees 1838 | Website https://www.trex.com |
Full time employees 1838 | Website https://www.trex.com | ||
Trex Company, Inc. manufactures and sells composite decking and railing products in the United States. The company 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. It 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, the company 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 cellular PVC and all-aluminum product; 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. It 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.
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